Adherium Ltd. (ADR) AI Stock Analysis

• Market Cap: AU$5.31M
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -59.01%
• EPS Growth: 17.06%
• Country: AU
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): -0.02
• Shares Outstanding: 758,185,200
• 10 Day Avg. Volume: 107,278
• 30 Day Avg. Volume: 1,170,790
• PEG Ratio: -0.02
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.54
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ―

Adherium Ltd. is facing substantial financial challenges with declining revenues, negative profitability, and cash flow issues. The technical analysis suggests a bearish trend with the stock trading below key moving averages. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score, indicating potential risks for investors.

Adherium Ltd. Business Overview & Revenue Model

Company Description

Adherium Limited develops, manufactures, and supplies digital health technologies that address sub-optimal medication use in chronic diseases in New Zealand, Australia, Europe, North America, and Asia. The company offers Hailie, an asthma and chronic obstructive pulmonary disease medication adherence solution for patients with chronic respiratory diseases. It also provides Bluetooth enabled Hailie sensors, which wrap around a patient's inhalers and offers real-time feedback to patients; Hailie app; and Hailie portal. The company was incorporated in 2001 and is based in Auckland, New Zealand.

How the Company Makes Money

Adherium Ltd. generates revenue through the sale of its smart inhaler sensors and the associated digital health platform. The company's revenue model primarily involves direct sales to healthcare providers, pharmaceutical companies, and other stakeholders in the healthcare ecosystem. Additionally, Adherium may engage in partnerships or collaborations with pharmaceutical companies to integrate its technology into broader disease management programs, potentially creating additional revenue streams. The company's earnings are influenced by the adoption of its technology in clinical settings and the ongoing need for effective management of chronic respiratory diseases.

Adherium Ltd. Financial Statement Overview

Summary

Adherium Ltd. faces significant financial challenges, with negative profitability and cash flow metrics. Despite a low debt burden, the company struggles with declining revenues, negative margins, and cash flow issues. Without a clear path to improve operational efficiency and revenue growth, financial sustainability remains a concern.

Income Statement

Adherium Ltd. has experienced declining total revenue over the past few years, with a significant drop from 2023 to 2024. The company has persistently negative net margins, with a net loss for each year observed. Gross profit margins have been negative, indicating cost management issues. Moreover, EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low, suggesting limited reliance on debt financing, which is a positive aspect. However, stockholders' equity has been decreasing over the years, raising concerns about financial stability. The equity ratio indicates that a significant portion of the company's assets is financed by equity, but the declining total assets and stockholders' equity are concerning.

Cash Flow

Adherium Ltd. has consistently negative free cash flow, with increasing negative operating cash flows year-on-year. The operating cash flow to net income ratio is unfavorable due to persistent losses. Although the company has had some financing inflows, the cash burn from operations and capital expenditures is worrying.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
964.13K	840.98K	3.19M	529.00K	401.00K	2.22M
	Gross Profit
-246.95K	267.70K	1.69M	-690.00K	-789.00K	677.00K
	EBIT
-12.53M	-12.09M	-11.91M	-12.84M	-12.37M	-8.92M
	EBITDA
-12.44M	-11.56M	-9.91M	-12.65M	-12.74M	-8.46M
	Net Income Common Stockholders
-11.33M	-10.22M	-9.86M	-10.04M	-15.04M	-11.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
387.21K	6.20M	9.08M	5.28M	15.18M	4.58M
	Total Assets
4.87M	9.89M	12.68M	8.53M	17.04M	6.72M
	Total Debt
752.96K	93.20K	44.00K	85.00K	0.00	0.00
	Net Debt
365.75K	-6.10M	-9.03M	-5.20M	-15.18M	-4.58M
	Total Liabilities
3.46M	3.41M	3.47M	3.00M	3.00M	3.33M
	Stockholders Equity
1.41M	6.48M	9.21M	5.54M	14.04M	3.38M
Cash Flow		Free Cash Flow
-11.18M	-10.61M	-9.32M	-9.89M	-11.30M	-7.46M
	Operating Cash Flow
-11.17M	-10.61M	-9.28M	-9.61M	-11.27M	-7.32M
	Investing Cash Flow
-14.70K	-37.00	-41.00K	-279.00K	-29.00K	-138.00K
	Financing Cash Flow
8.40M	7.73M	13.07M	0.00	21.90M	11.34M

Adherium Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RHT	61 Neutral	AU$17.93M	140.00	-3.11%	―	89.13%	69.57%
NSB	54 Neutral	AU$8.97M	7.56	26.99%	―	―	51.85%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
BOT	53 Neutral	AU$578.46M	―	-56.99%	―	10.76%	-195.89%
CSX	51 Neutral	AU$30.51M	―	-7.59%	―	28.89%	72.95%
ADR	47 Neutral	AU$5.31M	―	-375.15%	―	-59.01%	17.06%
PYC	47 Neutral	AU$670.75M	―	-112.97%	―	―	-84.82%

Adherium Ltd. Corporate Events

Adherium Issues Stock Appreciation Rights to Employees

Adherium Limited announced the issuance of 2,000,000 stock appreciation rights under an employee incentive scheme. These unquoted securities are subject to transfer restrictions and are not listed on the ASX until the restrictions are lifted, reflecting the company’s strategy to incentivize and retain key personnel.

Adherium Limited Announces Director’s Acquisition of Convertible Notes

Adherium Limited announced a change in the director’s interest, with George Baran acquiring 1,200,000 convertible notes. This acquisition follows shareholder approval and reflects ongoing strategic financial maneuvers within the company, potentially impacting its market positioning and stakeholder interests.

Adherium Ltd. Issues 2.2 Million Convertible Notes

Adherium Ltd. announced the issuance of 2,225,000 convertible notes, which are unquoted equity securities. This move is part of the company’s financial strategy to enhance its capital structure, potentially impacting its market position by providing additional resources for growth and development in the digital health sector.

Adherium Limited Announces Convertible Notes Issuance

Adherium Limited has announced a proposed issuance of 900,000 convertible notes, scheduled for November 10, 2025. This move is part of a strategic effort to raise capital, potentially impacting the company’s financial structure and market positioning, and offering new opportunities for stakeholders.

Adherium Secures $900,000 to Boost U.S. Expansion of Smartinhaler Platform

Adherium Limited has announced a successful capital raise of $900,000 through the issuance of convertible notes, supported by Phillip Asset Management Limited and Trudell Medical Limited. The funds will be used to further the roll-out of the Hailie® Smartinhaler® platform in the U.S. and for general working capital, potentially strengthening Adherium’s market position in digital health solutions for respiratory care.

Adherium Ltd. Appoints New Director with Significant Stock Interest

Adherium Ltd. has announced the appointment of Keven Gessner as a director, effective May 8, 2025. As part of his role, Gessner holds 2,000,000 Stock Appreciation Rights, indicating a significant interest in the company’s future performance. This appointment is a strategic move that could influence Adherium’s market positioning and operational strategies, potentially impacting stakeholders positively by aligning leadership with shareholder interests.

Adherium Limited Announces Director Change

Adherium Limited has announced that William Hunter has ceased to be a director of the company as of May 8, 2025. The notice details Hunter’s interests in the company’s securities, which include 174,170 fully paid ordinary shares. This change in directorship may impact the company’s governance and strategic direction, but specific implications for stakeholders or the company’s operations are not detailed in the announcement.

Adherium Strengthens Leadership Team to Boost US Market Expansion

Adherium Limited has announced key leadership appointments to bolster its strategic marketing and sales efforts for the Hailie® Smartinhaler® platform in the US. The appointments include Keven Gessner as Non-Executive Director, Jason Hochman as Head of US Commercial/GTM, and David Haddad as Head of Product. These strategic hires aim to enhance Adherium’s market presence and accelerate its commercial growth in the US healthcare market, leveraging their extensive experience in digital health and respiratory care. The company’s recent capital raise of $2.6 million further supports its commitment to expanding its operations and driving the adoption of its technology.

Adherium Limited Reports Over 100% Growth in US Commercial Patients and Expands Product Line

Adherium Limited has reported significant growth in its US commercial patient base, with a more than 100% increase in the last quarter, reaffirming its target of 9,000 remote patient monitoring patients by the end of 2025. The company has expanded its US commercialization team and released a new Hailie Smartinhaler product compatible with AstraZeneca’s AIRSUPRA and Breztri Aerosphere, enhancing its market position and offering significant opportunities for growth. Strategic partnerships with Group Purchasing Organizations and other healthcare providers are expected to streamline adoption and drive further expansion, while the integration of AI-driven algorithms aims to improve patient adherence and care management.

Adherium’s Strategic Financial Moves Approved at Extraordinary General Meeting

Adherium Limited announced that all resolutions at their Extraordinary General Meeting were passed. These resolutions included the approval and ratification of the issuance of convertible notes to various entities, indicating a strategic move to enhance financial flexibility and potentially expand their market presence.

Adherium Announces Cessation of Securities

Adherium Limited announced the cessation of certain securities, including 394,753 ordinary fully paid shares and 3,600,447 stock appreciation rights, due to unmet conditions and the expiry of options. This announcement may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth prospects.