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Annexon Biosciences (ANNX)
NASDAQ:ANNX
US Market

Annexon Biosciences (ANNX) AI Stock Analysis

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Annexon Biosciences

(NASDAQ:ANNX)

Rating:38Underperform
Price Target:
Annexon Biosciences faces significant challenges typical of pre-revenue biotechnology companies. The lack of revenue and increasing financial losses are major concerns, despite strong cash reserves and low debt. Technical analysis indicates a bearish trend, and valuation metrics reflect the absence of profitability. Overall, the stock's performance is constrained by financial and market challenges in a high-risk sector.
Positive Factors
Clinical Trial Success
ANX005 shows better efficacy compared to an IGOS database of Western patients on IVIg/PE.
Financial Health
The 1Q25 cash balance of $263M is considered sufficient to fund operations into 2H26, indicating strong financial health.
Regulatory Progress
The meeting with the FDA is seen as a regulatory catalyst and a clearing event for tanruprubart, which is underappreciated by investors.
Negative Factors
Investor Sentiment
Investors remain unsure about a potential GBS approval given that ANNX's Phase III study enrolled Southeast Asian patients.
Market Opportunity
The GA market appears to be smaller than originally anticipated following the approval of two new therapies, which makes the commercial opportunity for a third entrant more cautious.
Valuation Concerns
The price target for the stock has been lowered, suggesting a less optimistic outlook.

Annexon Biosciences (ANNX) vs. SPDR S&P 500 ETF (SPY)

Annexon Biosciences Business Overview & Revenue Model

Company DescriptionAnnexon Biosciences (ANNX) is a clinical-stage biopharmaceutical company focused on developing novel therapies for patients with classical complement-mediated disorders. The company operates in the biotechnology sector and is dedicated to the development of innovative treatments that target the complement system, a part of the immune system, to address diseases across multiple therapeutic areas, including neurodegenerative and autoimmune disorders.
How the Company Makes MoneyAnnexon Biosciences generates revenue primarily through partnerships and collaborations with other pharmaceutical and biotechnology companies. The company's revenue model includes milestone payments, royalties, and licensing fees associated with the development and commercialization of its therapies. Annexon's potential earnings are significantly influenced by the advancement of its clinical trials, regulatory approvals, and successful commercialization of its drug candidates. As a clinical-stage company, Annexon does not yet have products on the market, thus its revenue is largely dependent on funding from strategic alliances and possibly government grants or research funding.

Annexon Biosciences Financial Statement Overview

Summary
Annexon Biosciences has a typical pre-revenue biotechnology financial profile, with zero revenue and increasing losses. The balance sheet is strong due to significant cash reserves and low debt levels, providing some stability. However, the negative cash flows and lack of revenue generation capability highlight financial sustainability risks.
Income Statement
15
Very Negative
Annexon Biosciences has reported zero revenue over multiple years, indicating a pre-commercial stage typical for many biotechnology firms. The company consistently records negative net income with increasing losses year-over-year, reflecting ongoing R&D and operational expenses without offsetting revenue. EBIT and EBITDA margins are negative due to lack of revenue and high expenses. Overall, the income statement highlights significant financial losses and lack of revenue generation capacity.
Balance Sheet
45
Neutral
The balance sheet shows a strong cash position and significant stockholders' equity compared to total liabilities, indicating financial resilience. The equity ratio is healthy, suggesting the company is not overly reliant on debt financing. However, the persistent negative net income impacts the return on equity. The debt-to-equity ratio is low, reflecting minimal leverage and reduced financial risk. Despite this, the lack of revenue generation is a concern for long-term sustainability.
Cash Flow
30
Negative
Operating cash flow remains negative, indicating cash burn from operations without revenue support. Free cash flow is also negative, although consistent financing inflows support cash reserves. The absence of revenue means cash flow ratios, like operating cash flow to net income, remain unfavorable. Although the company maintains strong cash balances, the ongoing cash burn poses a risk if new funding is not secured.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-856.00K0.00-3.27M-3.31M-3.41M-667.00K
EBIT
-182.91M-154.07M-143.72M-145.60M-130.71M-63.47M
EBITDA
-181.29M-134.75M-141.57M-143.49M-128.57M-62.80M
Net Income Common Stockholders
-167.38M-138.20M-134.24M-138.29M-127.79M-62.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
263.70M312.02M259.72M242.66M242.72M351.21M
Total Assets
303.03M350.07M297.67M285.10M287.04M355.95M
Total Debt
28.31M28.97M31.36M32.86M34.59M0.00
Net Debt
-68.81M-20.53M-193.75M-107.16M-40.25M-268.56M
Total Liabilities
59.24M56.97M47.12M53.90M55.13M11.67M
Stockholders Equity
243.79M293.11M250.56M231.19M231.91M344.28M
Cash FlowFree Cash Flow
-139.88M-118.02M-121.33M-122.83M-107.76M-53.55M
Operating Cash Flow
-139.79M-118.01M-121.14M-116.31M-106.11M-53.09M
Investing Cash Flow
-43.88M-218.80M70.70M58.44M-88.24M-83.16M
Financing Cash Flow
128.85M161.21M135.52M122.91M1.79M360.88M

Annexon Biosciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.52
Price Trends
50DMA
1.92
Positive
100DMA
2.45
Positive
200DMA
4.24
Negative
Market Momentum
MACD
0.20
Negative
RSI
68.96
Neutral
STOCH
75.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANNX, the sentiment is Positive. The current price of 2.52 is above the 20-day moving average (MA) of 2.24, above the 50-day MA of 1.92, and below the 200-day MA of 4.24, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 75.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANNX.

Annexon Biosciences Risk Analysis

Annexon Biosciences disclosed 66 risk factors in its most recent earnings report. Annexon Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Annexon Biosciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$372.46M-0.23%3087.25%97.11%
55
Neutral
$243.52M2152.93%54.68%
54
Neutral
$5.38B3.31-45.11%3.29%16.82%0.04%
46
Neutral
$513.79M-61.35%10.10%-7.25%
43
Neutral
$126.46M-262.12%239.92%79.41%
41
Neutral
$189.59M-160.99%-75.67%-552.37%
38
Underperform
$289.65M-66.13%43.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ANNX
Annexon Biosciences
2.71
-2.91
-51.78%
SGMO
Sangamo Biosciences
0.50
0.00
0.00%
FULC
Fulcrum Therapeutics
6.78
-0.67
-8.99%
IPHA
Innate Pharma
1.98
-0.37
-15.74%
TNGX
Tango Therapeutics
5.05
-3.88
-43.45%
NBTX
Nanobiotix
5.76
1.16
25.22%

Annexon Biosciences Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Annexon Biosciences Strengthens Board for Strategic Growth
Positive
Jan 10, 2025

Annexon Biosciences has appointed William Jones to its Board of Directors, bringing his extensive 30-year experience in the biotechnology industry to the company. This strategic move comes as Annexon prepares for the commercialization of key treatments for Guillain-Barré Syndrome and geographic atrophy, with Jones’ commercial expertise expected to enhance the company’s market positioning and execution of its commercialization strategies.

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.