Aldeyra Therapeutics (ALDX) AI Stock Analysis

• Market Cap: $278.51M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.11
• Revenue Growth: N/A
• EPS Growth: -47.28%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 59,895,588
• 10 Day Avg. Volume: 1,125,609
• 30 Day Avg. Volume: 1,039,562
• PEG Ratio: 1.46
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.18
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 100.33
• Enterprise Value/Gross Profit: -456.60K
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: $8.75
• Price Target Upside: 74.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 37 Underperform
• Price Target: ―

Aldeyra Therapeutics faces substantial financial and regulatory challenges, reflected in its low overall score. The lack of revenue and continuous losses are significant risks, compounded by negative technical indicators. The recent FDA response letter adds further uncertainty. However, strong cash reserves and a strategic board appointment provide some potential for recovery if product development succeeds.

Positive Factors

FDA Approval Potential

The likelihood of FDA approval for Reproxalap is considered high, as it is seen as a differentiated DED drug with a disease-modifying mechanism.

Financial Stability

The company ended the quarter with approximately $90 million in cash, which is considered sufficient to fund operations into 2027.

Treatment Efficacy

Reproxalap's demonstrated timely benefit measured in minutes compared to the weeks or months required by standard treatments suggests potential for broader application in the dry eye disease population.

Negative Factors

Field Trial Failure

The failure of the field trial, attributed to variability related to temperature, humidity, and pollen, accompanied the positive second resubmission chamber trial.

Investor Skepticism

Investors are skeptical of the approval of reproxalap in dry eye disease based solely on a positive resubmission chamber trial, as the stock is down.

Regulatory Challenges

It's difficult not to be a little skeptical given the saga with this development program and the continuous issues that the FDA keeps bringing up even when management thinks everything is OK.

Aldeyra Therapeutics Business Overview & Revenue Model

Company Description

Aldeyra Therapeutics, Inc., a biotechnology company, develops and commercializes medicines for immune-mediated ocular and systemic diseases. The company's lead product candidate is reproxalap, a reactive aldehyde species (RASP)modulator, which is in Phase III clinical trial for the treatment of dry eye diseases and allergic conjunctivitis. It also develops ADX-629, a first-in-class orally administered RASP modulator that is Phase II clinical trial for psoriasis, asthma, and COVID-19; and ADX-2191, a dihydrofolate reductase inhibitor which is in phase 3 for the prevention of proliferative vitreoretinopathy, and phase II clinical trial for the treatment of retinitis pigmentosa, as well as for treating primary vitreoretinal lymphoma. The company has a license agreement with Madrigal Pharmaceuticals, Inc. for developing ADX-1612, which inhibits the protein chaperome for the treatment of inflammatory diseases. The company was formerly known as Aldexa Therapeutics, Inc. and changed its name to Aldeyra Therapeutics, Inc. in March 2014. Aldeyra Therapeutics, Inc. was incorporated in 2004 and is based in Lexington, Massachusetts.

How the Company Makes Money

Aldeyra Therapeutics primarily makes money through the development and commercialization of its pharmaceutical products. Its revenue model is based on the successful progression of its drug candidates through clinical trials, regulatory approval, and eventual sales in the healthcare market. The company may also enter into licensing agreements and partnerships with larger pharmaceutical companies to enhance development and distribution capabilities, which can provide upfront payments, milestone payments, and royalties. Additionally, Aldeyra might receive funding through grants, collaborations, or equity investments to support its ongoing research and development activities.

Aldeyra Therapeutics Financial Statement Overview

Summary

Aldeyra Therapeutics is in a challenging financial position with zero revenue, high R&D costs, and ongoing losses. While strong cash reserves provide some buffer, the lack of revenue and persistent losses pose significant sustainability risks.

Income Statement

Aldeyra Therapeutics has consistently reported zero revenue over recent years, indicating no commercialized products. The company shows significant negative EBIT and net income, reflecting high R&D and operational costs typical for a biotech firm in its developmental phase. The absence of revenue and persistent losses highlight a challenging financial situation with potential risks related to sustainability.

Balance Sheet

The balance sheet shows a strong liquidity position with substantial cash reserves compared to debt, resulting in negative net debt. The company maintains a relatively healthy equity ratio, indicating moderate financial leverage. However, continuous losses impact shareholder equity negatively over time, which could be a concern if no revenue streams are established.

Cash Flow

Cash flow analysis reveals ongoing negative operating and free cash flows, typical for early-stage biotech companies focusing on R&D. The negative free cash flow growth rate and reliance on financing activities suggest the company is burning cash without generating operational income, posing a risk if external funding sources dry up.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	244.53K	0.00	0.00	0.00	0.00	0.00
Gross Profit	-280.00	-250.00K	-263.00K	-259.00K	-264.00K	-56.22K
EBITDA	-55.54M	-60.12M	-35.21M	-60.07M	-55.77M	-36.07M
Net Income	-57.70M	-55.85M	-37.54M	-61.37M	-57.78M	-37.55M
Balance Sheet
Total Assets	93.20M	104.61M	148.33M	181.29M	233.14M	83.35M
Cash, Cash Equivalents and Short-Term Investments	90.06M	101.15M	142.82M	174.30M	229.79M	77.86M
Total Debt	15.57M	15.30M	15.66M	16.08M	15.86M	15.33M
Total Liabilities	29.60M	33.60M	28.53M	30.28M	27.40M	23.84M
Stockholders Equity	63.60M	71.00M	119.80M	151.01M	205.74M	59.51M
Cash Flow
Free Cash Flow	-45.71M	-43.21M	-30.33M	-56.65M	-42.56M	-37.49M
Operating Cash Flow	-45.71M	-43.21M	-30.33M	-56.64M	-42.56M	-37.49M
Investing Cash Flow	-7.25M	-44.92M	30.00M	-29.95M	-7.81K	29.02M
Financing Cash Flow	813.20K	-171.42K	-1.27M	1.22M	194.50M	41.90M

Aldeyra Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALDX, the sentiment is Positive. The current price of 5.01 is above the 20-day moving average (MA) of 3.82, above the 50-day MA of 2.95, and above the 200-day MA of 4.55, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 81.79 is Negative, neither overbought nor oversold. The STOCH value of 88.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALDX.

Aldeyra Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NKTR	60 Neutral	$432.69M	―	-189.46%	―	-3.24%	31.00%
Sector *	52 Neutral	$7.52B	0.21	-63.76%	2.30%	16.15%	0.89%
LRMR	49 Neutral	$216.41M	―	-50.77%	―	―	-54.29%
NKTX	39 Underperform	$129.85M	―	-26.10%	―	―	30.76%
RAPT	39 Underperform	$139.90M	―	-75.60%	―	―	-2.29%
ALDX	37 Underperform	$278.51M	―	-65.19%	―	―	-47.28%
KOD	35 Underperform	$239.02M	―	-108.92%	―	―	32.58%

Aldeyra Therapeutics Corporate Events

Aldeyra Therapeutics Appoints Chip Clark to Board

On April 17, 2025, Aldeyra Therapeutics announced the appointment of Chip Clark as a Class I director on its board, expanding the board to eight members. Mr. Clark, with over three decades of experience in the biopharmaceutical industry, is expected to contribute significantly to Aldeyra’s strategic direction as it advances its pipeline addressing unmet medical needs in immune-mediated and metabolic diseases.

Spark’s Take on ALDX Stock

According to Spark, TipRanks’ AI Analyst, ALDX is a Underperform.

Aldeyra Therapeutics faces significant financial challenges with no current revenue and ongoing losses. The negative trend in technical analysis and high regulatory risk from the FDA’s response letter further weigh down the stock’s outlook. Despite its strong cash reserves, the company’s sustainability depends heavily on successful product development and overcoming regulatory hurdles.

To see Spark’s full report on ALDX stock, click here.

Aldeyra Therapeutics Receives FDA Complete Response Letter

On April 3, 2025, Aldeyra Therapeutics announced receiving a Complete Response Letter from the FDA regarding its resubmitted New Drug Application for reproxalap, intended for treating dry eye disease. The FDA highlighted the need for additional well-controlled studies due to concerns about the efficacy data and methodological issues in previous trials. Aldeyra plans to address these issues with ongoing trials and aims to resubmit the NDA by mid-2025, although this may require more resources and delay the drug’s approval and commercialization, impacting the company’s financial condition and market strategy.