Annexon Biosciences (ANNX) AI Stock Analysis

• Market Cap: $220.53M
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: N/A
• EPS Growth: 43.21%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.37
• Shares Outstanding: 109,714,400
• 10 Day Avg. Volume: 1,298,080
• 30 Day Avg. Volume: 1,757,605
• PEG Ratio: -0.84
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.09
• 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: $12.00
• Price Target Upside: 497.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

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

Efficacy

ANX005 shows better efficacy compared to an IGOS database of Western patients on IVIg/PE.

Market Opportunity

The annual GBS incidence suggests up to a $1B+ US/EU opportunity for ANNX, making ANX005 a potentially significant market player if approved.

Regulatory Progress

A lack of approved GBS therapies in the US could also warrant greater FDA regulatory flexibility.

Negative Factors

Financial Outlook

The price target for the stock has been lowered, suggesting a less optimistic outlook.

Investor Uncertainty

Investors remain unsure about a potential GBS approval given that ANNX's Phase III study enrolled Southeast Asian patients.

Valuation Concerns

Lowering of P/E multiples and increasing discount rates are made to better align with current investor sentiment and elevated cost of capital.

Annexon Biosciences Business Overview & Revenue Model

Company Description

Annexon 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 Money

Annexon 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 demonstrates typical pre-revenue biotechnology company financials, with significant cash reserves supporting ongoing R&D activities. While the lack of revenue and increasing losses highlight financial risks, the company's strong equity position and low debt levels provide some stability. The key challenge remains transitioning to revenue generation to sustain operations and achieve profitability.

Income Statement

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

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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-3.27M	-3.31M	-3.41M	-667.00K
	EBIT
-154.07M	-143.72M	-145.60M	-130.71M	-63.47M
	EBITDA
-154.07M	-141.57M	-143.49M	-128.57M	-62.80M
	Net Income Common Stockholders
-138.20M	-134.24M	-138.29M	-127.79M	-62.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
312.02M	259.72M	242.66M	242.72M	351.21M
	Total Assets
350.07M	297.67M	285.10M	287.04M	355.95M
	Total Debt
28.97M	31.36M	32.86M	34.59M	0.00
	Net Debt
-20.53M	-193.75M	-107.16M	-40.25M	-268.56M
	Total Liabilities
56.97M	47.12M	53.90M	55.13M	11.67M
	Stockholders Equity
293.11M	250.56M	231.19M	231.91M	344.28M
Cash Flow		Free Cash Flow
-118.02M	-121.33M	-122.83M	-107.76M	-53.55M
	Operating Cash Flow
-118.01M	-121.14M	-116.31M	-106.11M	-53.09M
	Investing Cash Flow
-218.80M	70.70M	58.44M	-88.24M	-83.16M
	Financing Cash Flow
161.21M	135.52M	122.91M	1.79M	360.88M

Annexon Biosciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.01
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANNX, the sentiment is Neutral. The current price of 2.01 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.97, and below the 200-day MA of 4.54, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 81.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ANNX.

Annexon Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	66 Neutral	$374.08M	―	-0.23%	―	3087.25%	97.11%
IPHA	53 Neutral	$197.36M	―	-160.99%	―	-75.67%	-552.37%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
TNGX	47 Neutral	$162.59M	―	-61.35%	―	10.10%	-7.25%
NBTX	43 Neutral	$185.59M	―	2152.93%	―	―	54.68%
SGMO	38 Underperform	$115.34M	―	-262.12%	―	239.92%	79.41%
ANNX	38 Underperform	$220.53M	―	-66.13%	―	―	43.21%

Annexon Biosciences Corporate Events

Annexon Biosciences Strengthens Board for Strategic Growth

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.