Adverum Biotechnologies (ADVM) AI Stock Analysis

• Market Cap: $71.35M
• Dividend Yield: N/A
• Average Volume (3M): 154.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -72.22%
• EPS Growth: 51.95%
• Country: US
• Employees: 121
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -6.03
• Shares Outstanding: 20,802,464
• 10 Day Avg. Volume: 174,162
• 30 Day Avg. Volume: 154,779
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 106.09
• Price to Cash Flow (P/CF): -1.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.00
• Price Target Upside: 774.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Adverum Biotechnologies' overall stock score reflects significant financial and technical challenges, with ongoing losses and bearish technical indicators as key factors. The promising results from gene therapy trials offer some potential for future growth, but high leverage and lack of profitability remain critical concerns. The stock's valuation is unattractive, and the lack of positive earnings call details limits upward potential.

Positive Factors

Clinical Data

The new data for ixo-vec, a gene therapy candidate, is considered very robust on both safety and efficacy, supporting its best-in-class profile.

Market Interest

There is optimism about ongoing pharma partnership discussions which could potentially help resolve funding issues.

Product Potential

Analyst maintains an outperform rating on ADVM due to a bullish view on ixo-vec representing a best-in-class product and a potential global sales opportunity exceeding $2 billion.

Therapeutic Innovation

ADAR-based therapeutics represent an exciting emerging class of genetic medicines, with applications in many therapeutic areas.

Negative Factors

Financial Concerns

There is a major stock overhang due to management not solving how the Phase 3 ixo-vec program will be funded.

Stock Valuation

The price target has been adjusted from $20 to $16 due to the assumed cost of the newly disclosed first Phase 3 study and current cash considerations.

Adverum Biotechnologies Business Overview & Revenue Model

Company Description

Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, develops gene therapy product candidates to treat ocular and rare diseases. Its lead product candidate is ADVM-022, a single intravitreal injection gene therapy candidate used for the treatment of patients with chronic retinal, including wet age-related macular degeneration and diabetic macular edema. Adverum Biotechnologies, Inc. has license and collaboration agreements with University of California; Cornell University; GenSight; Lexeo; and Virovek. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.

How the Company Makes Money

Adverum Biotechnologies primarily generates revenue through strategic partnerships, collaborations, and licensing agreements with pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestones, and royalties based on the successful development and commercialization of their gene therapy candidates. Additionally, as the company's therapies progress through clinical trials and potentially receive regulatory approval, Adverum may derive revenue from product sales and commercialization efforts. The company's revenue model heavily relies on the successful advancement of its pipeline products and the ability to attract and maintain strategic partnerships to support its research and development efforts.

Adverum Biotechnologies Financial Statement Overview

Summary

Adverum Biotechnologies faces significant financial challenges, with consistent losses impacting profitability and cash flows. While the company's cash reserves provide some financial flexibility, high leverage and declining equity pose risks to long-term sustainability. Strategic adjustments are necessary to improve financial health and reduce dependency on external financing.

Income Statement

Adverum Biotechnologies exhibits weak income statement metrics characterized by negative profitability and declining revenue. The TTM shows a negative gross profit margin and a net profit margin of -3620.04%, indicating substantial losses relative to revenue. Revenue growth is inconsistent, with a significant decline in recent periods, pointing to operational challenges.

Balance Sheet

The balance sheet reveals moderate stability but also significant risk due to high leverage. The debt-to-equity ratio remains elevated, reflecting reliance on debt financing. However, the company maintains a substantial cash position relative to its liabilities, providing some liquidity buffer. Stockholders' equity shows a decreasing trend, impacting financial resilience.

Cash Flow

Cash flow analysis highlights negative operating and free cash flows, indicating cash burn issues. The operating cash flow to net income ratio is negative due to persistent net losses. Although the company generated positive cash flow from financing activities, reliance on external financing could pose future risks if profitability does not improve.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-2.60M	3.60M	0.00	7.50M	0.00	250.00K
	Gross Profit
-6.45M	-2.04M	-6.53M	2.85M	-4.16M	250.00K
	EBIT
-113.90M	-123.99M	-157.13M	-146.12M	-117.95M	-68.55M
	EBITDA
-97.03M	-118.35M	-147.93M	-140.90M	-112.23M	-62.91M
	Net Income Common Stockholders
-94.11M	-117.17M	-154.54M	-145.54M	-117.51M	-64.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.68M	96.53M	185.59M	305.19M	429.73M	166.03M
	Total Assets
51.61M	173.01M	308.37M	439.73M	482.57M	222.73M
	Total Debt
14.00K	75.04M	106.80M	102.99M	30.71M	32.25M
	Net Debt
-50.66M	36.00K	38.37M	68.80M	-31.72M	-33.65M
	Total Liabilities
1.70M	89.54M	126.85M	123.54M	48.22M	47.77M
	Stockholders Equity
49.91M	83.47M	181.52M	316.19M	434.35M	174.96M
Cash Flow		Free Cash Flow
-86.14M	-91.71M	-119.91M	-122.95M	-91.14M	-68.42M
	Operating Cash Flow
-85.62M	-90.90M	-108.09M	-107.83M	-79.29M	-49.17M
	Investing Cash Flow
-47.58M	96.88M	141.72M	78.71M	-280.17M	-68.07M
	Financing Cash Flow
120.01M	69.00K	607.00K	2.40M	355.99M	28.19M

Adverum Biotechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADVM, the sentiment is Negative. The current price of 3.43 is below the 20-day moving average (MA) of 4.42, below the 50-day MA of 4.36, and below the 200-day MA of 6.10, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADVM.

Adverum Biotechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.19	-46.31%	2.67%	19.41%	1.23%
ADVM	42 Neutral	$71.35M	―	-76.26%	―	-72.22%	51.95%
TCRX	38 Underperform	$70.17M	―	-65.08%	―	-86.62%	―
ADAG	38 Underperform	$72.08M	―	-55.14%	―	-99.43%	-69.40%
IGMS	29 Underperform	$71.73M	―	-155.76%	―	25.77%	32.56%
ELTX	29 Underperform	$79.77M	―	-9999.00%	―	―	27.65%

Adverum Biotechnologies Corporate Events

Adverum Biotechnologies Advances Ixo-vec Gene Therapy Trials

Adverum Biotechnologies reported encouraging results from its LUNA Phase 2 and OPTIC extension trials, showcasing its promising gene therapy candidate, Ixo-vec, for treating wet age-related macular degeneration (AMD). The trials demonstrated significant reductions in anti-VEGF injection burdens and maintained visual and anatomical outcomes, highlighting Ixo-vec’s potential to transform the treatment landscape for wet AMD. With robust patient preference and a favorable safety profile, Ixo-vec is poised for further clinical success as it progresses towards Phase 3 trials.