ATAI Life Sciences (ATAI) AI Stock Analysis

• Market Cap: $259.78M
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -0.90%
• EPS Growth: -89.51%
• Country: US
• Employees: 54
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): -0.80
• Shares Outstanding: 198,306,460
• 10 Day Avg. Volume: 1,950,560
• 30 Day Avg. Volume: 1,933,326
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 933.59
• Price to Cash Flow (P/CF): -3.00
• 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: $8.00
• Price Target Upside: 510.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

ATAI Life Sciences has substantial financial vulnerabilities with ongoing losses and cash flow issues, which heavily impact the stock score. While technical indicators and recent corporate events provide some positive outlook, the fundamental financial challenges remain significant.

Positive Factors

Financial Stability

Atai's well-capitalized balance sheet, execution across multiple programs, and upcoming data readouts are expected to further de-risk the pipeline.

Pipeline Progress

Phase 2b results for RL-007 in cognitive impairment associated with schizophrenia could position atai as a leader in pro-cognitive therapeutics.

Negative Factors

Dependency on Trial Outcomes

Topline data from the Phase 2b BPL-003 study for treatment-resistant depression is expected to be of particular focus to investors.

Market Perception

RL-007's potential is considered underappreciated, and positive mid-2025 data in cognitive impairment associated with schizophrenia could be a significant driver of upside.

ATAI Life Sciences Business Overview & Revenue Model

Company Description

Atai Life Sciences N.V., through its subsidiary, ATAI Life Sciences AG, operates as a clinical-stage biopharmaceutical company. It engages in developing various therapeutic candidates that focuses on various mental health disorders. The company's therapeutic candidates include PCN-101, a subcutaneous formulation of R-ketamine for the treatment of treatment-resistant depression (TRD); RL-007, a cholinergic, glutamatergic, and GABA-B receptor modulator to treat cognitive impairment associated with schizophrenia; DMX-1002, an oral formulation of ibogaine for treating opioid use disorder (OUD); GRX-917, an oral formulation of a deuterated version of etifoxine for the generalized anxiety disorder treatment; and NN-101, a novel intranasal formulation of N-acetylcysteine to treat mild traumatic brain injuries. Its therapeutic candidates also comprise VLS-01, a formulation of N,N-dimethyltryptamine for treating TRD; EMP-01, an oral formulation of an 3,4-methyl enedioxy methamphetamine for the treatment of post-traumatic stress disorder; RLS-01, a formulation of Salvinorin A for TRD; KUR-101, an oral formulation of deuterated mitragynine to treat OUD; and DMX-1001, an oral formulation of noribogaine for the treatment of OUD. The company was formerly known as Adripa Holding B.V. Atai Life Sciences N.V. was founded in 2018 and is headquartered in Berlin, Germany.

How the Company Makes Money

ATAI Life Sciences makes money primarily through its investments in and the development of its subsidiary companies, each of which focuses on distinct therapeutic areas. The company earns revenue by advancing these subsidiaries' drug candidates through clinical trials and into commercialization, either independently or in partnership with larger pharmaceutical companies. ATAI may also generate income through milestone payments, royalties, and licensing agreements associated with successful drug development. Additionally, strategic partnerships and collaborations with academic institutions and other biotech firms contribute to its revenue streams, allowing the company to leverage external expertise and resources.

ATAI Life Sciences Financial Statement Overview

Summary

ATAI Life Sciences faces significant financial challenges, marked by ongoing losses and a lack of revenue growth. The company maintains a low leverage position, but its persistent negative cash flows and earnings pose substantial risks. Financial sustainability relies on continued access to external funding.

Income Statement

ATAI Life Sciences has consistently faced challenges with profitability, as indicated by negative EBIT and net income figures across all reported years. The absence of revenue growth further underscores the company's struggle to generate revenue. The gross profit remained negative or negligible, pointing towards significant cost pressures and lack of revenue generation capabilities.

Balance Sheet

The company's balance sheet shows a high level of equity in comparison to its total assets, with an improving trend in stockholders' equity, despite negative earnings. The debt-to-equity ratio is relatively low, suggesting conservative leverage use. However, the continued accumulation of losses poses a risk to financial stability over time.

Cash Flow

ATAI Life Sciences has struggled to generate positive cash flows, with negative operating and free cash flows reported consistently. The cash flow to net income ratios indicate inefficiencies in cash management. The company's ability to sustain operations heavily depends on external financing, evident from periodic positive financing cash flows.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
331.00K	0.00	314.00K	233.00K	20.38M	0.00
	Gross Profit
65.00K	0.00	314.00K	65.00K	20.33M	-24.00K
	EBIT
-105.88M	-102.69M	-125.47M	-144.79M	-135.81M	-104.16M
	EBITDA
-121.72M	-102.69M	-36.31M	-135.01M	-120.28M	-92.12M
	Net Income Common Stockholders
-128.60M	-149.27M	-40.22M	-141.41M	-132.61M	-102.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.06M	27.50M	179.26M	273.11M	362.27M	97.25M
	Total Assets
0.00	159.39M	293.48M	305.44M	414.17M	111.55M
	Total Debt
0.00	7.58M	19.14M	15.12M	743.00K	2.18M
	Net Debt
30.06M	-9.92M	-25.89M	-175.50M	-361.52M	-95.07M
	Total Liabilities
0.00	42.83M	49.16M	300.42M	405.12M	16.18M
	Stockholders Equity
59.78M	116.30M	242.96M	260.74M	-348.14M	90.82M
Cash Flow		Free Cash Flow
-56.68M	-82.44M	-84.71M	-105.49M	-64.37M	-20.82M
	Operating Cash Flow
-79.24M	-82.44M	-84.12M	-104.47M	-63.25M	-20.77M
	Investing Cash Flow
52.42M	59.17M	-53.30M	-86.85M	-81.28M	-28.27M
	Financing Cash Flow
-3.24M	5.37M	-8.36M	20.79M	409.86M	113.05M

ATAI Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATAI, the sentiment is Negative. The current price of 1.31 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 1.69, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 18.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATAI.

ATAI Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
GHRS	45 Neutral	$625.86M	―	-19.58%	―	―	-9.46%
CMPS	43 Neutral	$185.78M	―	-81.56%	―	―	3.88%
ATAI	42 Neutral	$259.78M	―	-62.43%	―	-0.90%	-89.51%
RLMD	42 Neutral	$9.04M	―	-132.33%	―	―	19.21%
MNMD	27 Underperform	$409.25M	―	-68.01%	―	―	26.24%

ATAI Life Sciences Corporate Events

ATAI Life Sciences Diversifies Treasury with Bitcoin Investment

On March 20, 2025, ATAI Life Sciences announced its decision to diversify its treasury reserve strategy by investing in Bitcoin, alongside cash and other securities. The company plans an initial investment of $5 million in Bitcoin, which is not expected to affect its drug development timelines or operational runway.

ATAI Life Sciences Announces Public Offering Pricing

On February 12, 2025, atai Life Sciences announced the pricing of a public offering of 26,190,477 common shares at $2.10 per share, expected to close on February 14, 2025. The estimated net proceeds of approximately $51.4 million will be used for general corporate purposes and to advance its clinical development programs. Additionally, Beckley Psytech, in which atai has a strategic investment, announced positive results from studies on ELE-101 and BPL-003, showing significant improvements in mental health conditions such as Major Depressive Disorder and Alcohol Use Disorder.

ATAI Life Sciences Board Member Resignation and Changes

On January 19, 2025, Michael Auerbach resigned from ATAI Life Sciences N.V.’s supervisory board of directors and compensation committee. His resignation did not stem from any disagreements with the company, which expressed gratitude for his contributions. Following his departure, the board reduced its members from seven to six.

ATAI Life Sciences Revamps Leadership Amid Clinical Trials

atai Life Sciences announced significant leadership changes with Srinivas Rao assuming the role of sole CEO, alongside promotions and new appointments to enhance the company’s capabilities in clinical development, scientific innovation, and operational excellence. These changes come as the company advances key clinical programs, such as VLS-01 and EMP-01, into Phase 2 trials, which are crucial steps towards developing scalable psychedelic therapies for treatment-resistant depression, potentially impacting the mental health therapeutic market.