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Adagene
(NASDAQ:ADAG)
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Rating:51Neutral
Price Target:
$3.50
▲(9.37% Upside)
Action:Reiterated
Date:07/02/26
The score is held back primarily by weak financial performance (persistent losses, inconsistent revenue quality, and ongoing cash burn). Technicals are supportive with a clear uptrend and positive MACD, but overbought signals temper the outlook. Valuation is not compelling on an earnings basis due to the negative P/E and no indicated dividend yield.
Positive Factors
Proprietary discovery platform
Adagene's proprietary antibody discovery and engineering platform is a durable competitive asset: it supports generation of multiple therapeutic candidates, increases partner interest, and enables repeatable R&D outputs that can convert into licensing, milestone, and royalty revenue over time.
Negative Factors
Negative cash generation
Consistent negative operating and free cash flow indicates persistent cash burn and reliance on external financing. Even with 2025 improvement versus 2024, ongoing negative cash generation elevates funding risk and can force dilutive financings if partnerships or milestone receipts don't materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary discovery platform
Adagene's proprietary antibody discovery and engineering platform is a durable competitive asset: it supports generation of multiple therapeutic candidates, increases partner interest, and enables repeatable R&D outputs that can convert into licensing, milestone, and royalty revenue over time.
Read all positive factors
Adagene (ADAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$177.70M
Dividend YieldN/A
Average Volume (3M)289.64K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth7336.90%
EPS Growth49.64%
CountryUS
Employees128
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.47
Shares Outstanding66,072,590
10 Day Avg. Volume166,583
30 Day Avg. Volume289,638
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.02
Price to Sales (P/S)9.30
P/FCF Ratio-4.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.00Price Target Upside212.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.71
Revenue Forecast (FY)N/A
Adagene Business Overview & Revenue Model
Company Description
Adagene Inc. functions as a clinical-stage biopharmaceutical organization, primarily concentrating on the identification, evolution, and fabrication of monoclonal antibody-based therapeutics engineered to combat various types of cancer. The compan...
How the Company Makes Money
Adagene primarily generates revenue through collaboration and licensing arrangements rather than product sales (as a clinical-stage company). Key revenue streams typically include: (1) Upfront payments received when entering strategic partnerships...
Adagene Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
64
Positive
Cash Flow
24
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.67M | 103.20K | 18.11M | 9.29M | 10.18M |
| Gross Profit | 7.67M | -823.04K | 18.11M | 9.29M | 10.18M |
| EBITDA | -16.85M | -31.66M | -14.95M | -77.39M | -69.99M |
| Net Income | -17.61M | -33.42M | -18.95M | -79.97M | -73.18M |
Balance Sheet | |||||
| Total Assets | 78.26M | 89.27M | 115.73M | 152.40M | 189.51M |
| Cash, Cash Equivalents and Short-Term Investments | 74.52M | 85.19M | 109.93M | 143.76M | 174.39M |
| Total Debt | 6.26M | 18.49M | 22.31M | 27.97M | 7.49M |
| Total Liabilities | 42.91M | 38.74M | 45.17M | 69.31M | 32.95M |
| Stockholders Equity | 35.35M | 50.52M | 70.56M | 83.09M | 156.56M |
Cash Flow | |||||
| Free Cash Flow | -15.67M | -29.73M | -28.54M | -49.30M | -45.92M |
| Operating Cash Flow | -15.66M | -29.70M | -28.45M | -48.61M | -43.41M |
| Investing Cash Flow | 476.80K | 1.11M | -77.36K | -686.05K | -2.51M |
| Financing Cash Flow | 4.45M | 3.77M | -5.37M | 17.82M | 145.36M |
Adagene Technical Analysis
Positive
3.20
Price Trends
3.76
Positive
3.78
Positive
3.00
Positive
Market Momentum
<0.01
Negative
62.63
Neutral
69.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAG, the sentiment is Positive. The current price of 3.2 is below the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.76, and above the 200-day MA of 3.00, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADAG.
Adagene Risk Analysis
Adagene disclosed 120 risk factors in its most recent earnings report. Adagene reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adagene Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $250.40M | -2.42 | -94.90% | ― | ― | ― | |
52 Neutral | $64.08M | -1.54 | 233.93% | ― | -61.71% | -11.47% | |
52 Neutral | $22.87M | -0.19 | 1823.49% | ― | ― | 35.04% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $177.70M | -7.95 | -48.20% | ― | 7336.90% | 49.64% | |
45 Neutral | $65.43M | -1.19 | -35.20% | ― | ― | 49.30% | |
42 Neutral | $13.46M | -1.70 | -74.58% | ― | ― | 33.15% |
* Healthcare Sector Average
ADAG
Adagene
4.14
1.96
89.91%
IFRX
InflaRx
1.72
0.91
111.04%
CLNN
Clene
5.34
1.67
45.50%
QNCX
Quince Therapeutics
29.54
-304.46
-91.16%
IMA
ImageneBio
5.63
-9.07
-61.70%
ANEB
Anebulo Pharmaceuticals
0.33
-2.07
-86.25%
Adagene Corporate Events
Adagene Discloses Preliminary US$127.9 Million Cash Balance as of June 30, 2026
Jul 6, 2026
Adagene Inc. reported that as of June 30, 2026, it held preliminary, unaudited cash and cash equivalents totaling US$127.9 million, highlighting its current liquidity position. The company emphasized that this figure is subject to finalization and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.