Annexon Biosciences (ANNX) AI Stock Analysis

• Market Cap: $272.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: N/A
• EPS Growth: 43.21%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.37
• Shares Outstanding: 109,714,400
• 10 Day Avg. Volume: 2,455,402
• 30 Day Avg. Volume: 1,676,943
• PEG Ratio: 0.14
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.96
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 21.11
• Enterprise Value/Gross Profit: -240.04
• Enterprise Value/Ebitda: -0.35
• 1Y Price Target: $11.60
• Price Target Upside: 354.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 38 Underperform
• 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

Efficacy and Treatment

ANX005 treated group was twice as likely to be in a better state of health than those on the standard of care.

Market Potential

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

Regulatory Approval

Tanruprubart (ANX005) has shown superior results to off-label IVIg, leading to a high 75%+ conviction in eventual FDA approval.

Negative Factors

Financial Valuation

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

Investor Sentiment

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

Market Competition

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.

Annexon Biosciences Business Overview & Revenue Model

Company Description

Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops therapeutics for autoimmune, neurodegenerative, and ophthalmic disorders. The company's C1q is an initiating molecule of the classical complement pathway that targets distinct disease processes, such as antibody-mediated autoimmune disease and complement-mediated neurodegeneration. Its product candidates include ANX005, a monoclonal antibody, which is in Phase II/III clinical trials to treat patients with guillain- barré syndrome; Phase II trial in patients with warm autoimmune hemolytic anemia; and Phase II clinical trial for Huntington's disease and amyotrophic lateral sclerosis. The company is also developing ANX009 that is in Phase Ib trial in patients with lupus nephritis; and ANX007, which is in Phase II clinical trials to treat patients with geographic atrophy. In addition, it develops ANX105, an investigational monoclonal antibody targeting neurodegenerative indications; and ANX1502, an investigational oral small molecule for the treatment of certain autoimmune indications. The company was incorporated in 2011 and is headquartered in Brisbane, California.

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 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

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
EBITDA	-134.75M	-141.57M	-143.49M	-128.57M	-62.80M
Net Income	-138.20M	-134.24M	-138.29M	-127.79M	-62.74M
Balance Sheet
Total Assets	350.07M	297.67M	285.10M	287.04M	355.95M
Cash, Cash Equivalents and Short-Term Investments	312.02M	259.72M	242.66M	242.72M	351.21M
Total Debt	28.97M	31.36M	32.86M	34.59M	0.00
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: Positive
• Last Price: 2.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.55 is below the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.37, and below the 200-day MA of 3.71, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 53.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANNX.

Annexon Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	64 Neutral	$426.98M	―	-0.23%	―	3087.25%	97.11%
TNGX	57 Neutral	$731.66M	―	-61.35%	―	10.10%	-7.25%
NBTX	56 Neutral	$291.61M	―	2152.93%	―	―	―
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
SGMO	49 Neutral	$133.87M	―	-262.12%	―	239.92%	79.41%
IPHA	47 Neutral	$192.87M	―	-160.99%	―	-75.67%	-552.37%
ANNX	38 Underperform	$272.09M	―	-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.