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Alterity Therapeutics Ltd. (AU:ATH)
:ATH

Alterity Therapeutics (ATH) AI Stock Analysis

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AU:ATH

Alterity Therapeutics

(OTC:ATH)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
AU$0.01
▲(0.00% Upside)
Alterity Therapeutics faces significant challenges with profitability and cash flow, despite strong revenue growth and a solid equity position. The technical indicators suggest bearish momentum, and the negative P/E ratio highlights ongoing financial struggles. These factors contribute to a low overall stock score.
Positive Factors
Clinical Trial Success
Successful clinical trials for ATH434 in Multiple System Atrophy (MSA) indicate strong potential for future regulatory approval and market entry, enhancing Alterity's pipeline and addressing unmet medical needs.
Strong Equity Position
A strong equity position with minimal debt provides financial stability and reduces risk, allowing Alterity to focus on long-term R&D investments without the burden of high leverage.
Market Opportunity
The significant market opportunity for ATH434 in MSA suggests substantial revenue potential, supporting Alterity's growth prospects and justifying continued investment in its development.
Negative Factors
Profitability Challenges
Ongoing profitability challenges with negative margins indicate operational inefficiencies and high costs, which could hinder Alterity's ability to achieve sustainable financial health.
Cash Flow Issues
Negative cash flow highlights inefficiencies in converting revenue into cash, potentially limiting Alterity's ability to fund ongoing R&D and operational activities without external financing.
Negative Return on Equity
A negative return on equity reflects the company's inability to generate profits from its equity base, which may deter investor confidence and impact future capital raising efforts.

Alterity Therapeutics (ATH) vs. iShares MSCI Australia ETF (EWA)

Alterity Therapeutics Business Overview & Revenue Model

Company DescriptionAlterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer's disease, Huntington disease, Parkinson's disease, and other neurological disorders in Australia. The company's lead drug candidate is ATH434 that has completed Phase I clinical trial for the treatment of Parkinson's disease. It is also developing PBT2 that has completed Phase 2a clinical trial to treat Alzheimer's disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyAlterity Therapeutics generates revenue primarily through a combination of research and development funding, collaborations, and potential licensing agreements. The company may receive milestone payments and royalties from partnerships with larger pharmaceutical firms that are interested in its drug candidates. Additionally, Alterity may benefit from government grants or subsidies aimed at fostering innovation in biotech, particularly for therapies targeting serious medical conditions. The company's revenue model is heavily reliant on successful clinical trial outcomes, regulatory approvals, and the eventual commercialization of its therapeutic products.

Alterity Therapeutics Financial Statement Overview

Summary
Alterity Therapeutics is experiencing robust revenue growth, but profitability and cash flow remain significant concerns. The company has a strong equity position with minimal debt, which provides some financial stability. However, the negative margins and cash flow issues highlight the need for improved operational efficiency and cost management to achieve sustainable profitability.
Income Statement
35
Negative
Alterity Therapeutics shows a significant revenue growth rate of 46.03% in the latest year, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins (-2.23%) and EBIT margins (-2.70%). The consistent negative margins highlight ongoing operational challenges and high costs relative to revenue.
Balance Sheet
45
Neutral
The company maintains a very low debt-to-equity ratio of 0.0037, suggesting minimal leverage and financial risk. However, the return on equity is negative (-28.65%), reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively healthy, indicating a strong equity base compared to total assets.
Cash Flow
30
Negative
Alterity Therapeutics faces challenges with cash flow, as indicated by negative operating cash flow and free cash flow. The free cash flow growth rate is negative (-30.47%), and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting net income into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.44M5.44M4.02M3.92M5.12M4.34M
Gross Profit5.31M5.31M3.80M3.63M4.76M3.98M
EBITDA-14.63M-14.63M-19.46M-17.51M-17.39M-19.36M
Net Income-12.15M-12.15M-19.12M-13.81M-12.85M-15.31M
Balance Sheet
Total Assets46.03M46.03M19.22M27.32M41.36M33.59M
Cash, Cash Equivalents and Short-Term Investments40.66M40.66M12.64M15.77M34.81M28.12M
Total Debt155.46K155.46K159.04K210.38K117.49K65.65K
Total Liabilities3.62M3.62M5.43M4.50M5.89M3.12M
Stockholders Equity42.40M42.40M13.80M22.81M35.47M30.47M
Cash Flow
Free Cash Flow-10.71M-11.45M-12.61M-20.04M-12.43M-17.34M
Operating Cash Flow-10.71M-11.45M-12.61M-20.04M-12.34M-17.33M
Investing Cash Flow-7.50M-7.50M-5.72K-36.46K-89.15K-10.47K
Financing Cash Flow25.54M39.67M9.22M124.34K16.30M36.69M

Alterity Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
AU$105.20M15.2927.24%2.67%0.65%-9.90%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
44
Neutral
AU$160.50M0.66%
41
Neutral
AU$97.88M-42.68%63.46%
41
Neutral
$100.90M-83.09%55.94%
40
Underperform
$134.98M-81.03%-20.79%73.98%
40
Underperform
AU$106.68M-13.09-47.98%700.00%26.88%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ATH
Alterity Therapeutics
0.01
0.00
0.00%
AU:IMU
Imugene
0.32
-0.94
-74.56%
AU:PAR
Paradigm Biopharmaceuticals
0.32
-0.04
-11.27%
AU:EZZ
EZZ Life Science Holdings Ltd.
1.50
-1.08
-41.86%
AU:RCE
Recce Pharmaceuticals Ltd.
0.58
0.12
26.09%
AU:ALA
Arovella Therapeutics Limited
0.08
-0.10
-55.56%

Alterity Therapeutics Corporate Events

Alterity Therapeutics Appoints New Director with No Initial Securities Interest
Nov 24, 2025

Alterity Therapeutics Limited has announced the appointment of Julian Barbaczy as a director, effective November 21, 2025. The initial director’s interest notice indicates that Barbaczy does not hold any relevant interests in securities as a registered or non-registered holder, nor does he have any interests in contracts related to the company. This announcement is part of the company’s compliance with listing rules and corporate governance practices, ensuring transparency and accountability in its management structure.

Alterity Therapeutics Announces New Director Appointment and Securities Interests
Nov 24, 2025

Alterity Therapeutics Limited has announced the appointment of David Stamler as a director, effective November 21, 2025. This appointment is accompanied by a detailed disclosure of Stamler’s interests in the company’s securities, which include a significant number of fully paid ordinary shares and various options. This move is likely to impact the company’s governance and could influence its strategic direction, reflecting the company’s ongoing commitment to strengthening its leadership team.

Alterity Therapeutics Announces Director Change
Nov 24, 2025

Alterity Therapeutics Limited announced the cessation of Brian Meltzer as a director, effective November 21, 2025. This change in leadership involves Meltzer’s interests in a significant number of securities, including fully paid ordinary shares and various options, which may impact the company’s governance and strategic direction.

Alterity Therapeutics Announces Director Departure
Nov 24, 2025

Alterity Therapeutics Limited has announced that Geoffrey Kempler has ceased to be a director as of November 21, 2025. The announcement details Kempler’s interests in securities, which include fully paid ordinary shares and unlisted options. This change in directorship may influence the company’s strategic direction and investor confidence, given Kempler’s significant holdings and involvement in the company.

Alterity Therapeutics Advances in Neurodegenerative Disease Treatment
Nov 21, 2025

Alterity Therapeutics announced the results of its 2025 Annual General Meeting, highlighting the approval of resolutions by shareholders. The company continues to make strides in its clinical trials, particularly with ATH434, which has shown positive results in treating Multiple System Atrophy, potentially enhancing its market position and impact on stakeholders.

Alterity Therapeutics CEO Outlines Strategic Vision
Nov 21, 2025

Alterity Therapeutics has released a presentation by CEO Dr. David Stamler, emphasizing the company’s strategic direction and potential growth opportunities. The presentation highlights the company’s focus on advancing its objectives, though it acknowledges the inherent risks and uncertainties that could impact future outcomes.

Alterity Therapeutics Advances in Neurodegenerative Disease Treatment
Nov 21, 2025

Alterity Therapeutics announced significant progress at its 2025 Annual General Meeting, highlighting the completion of Phase 2 clinical trials for its lead asset, ATH434, in treating Multiple System Atrophy. The trials demonstrated a meaningful reduction in disease progression, earning FDA Fast Track and Orphan Drug Status, indicating strong commercial potential and hope for patients. The company is poised for late-stage clinical and commercial growth, with leadership transitions marking a new chapter in its journey.

Alterity Therapeutics Announces Board Restructuring for Growth
Nov 20, 2025

Alterity Therapeutics has announced significant changes to its Board of Directors as it prepares for its next phase of growth, particularly advancing towards Phase 3 clinical development. Founding shareholder and former CEO Geoffrey Kempler is retiring, marking the end of a transformative era for the company. Brian Meltzer, a long-serving director, is also retiring. The company has appointed Dr. David Stamler as Managing Director and CEO, and Julian Barbaczy as Non-Executive Chair, both bringing extensive experience to support Alterity’s strategic vision and late-stage clinical development. These changes are aimed at ensuring continuity of governance and supporting the company’s drive towards meaningful outcomes for patients and shareholders.

Alterity Therapeutics Discloses Equity Derivative Positions
Nov 13, 2025

Alterity Therapeutics Limited has disclosed a notice from Regal Funds Management Asia Pte Limited in compliance with the Australian Takeovers Panel Guidance Note 20 on Equity Derivatives. This disclosure involves long equity derivative positions related to Alterity’s securities, highlighting a significant stake held by the investment manager, which may impact the company’s market perception and investor relations.

Alterity Therapeutics to Present Key Updates at Bell Potter Healthcare Conference
Nov 12, 2025

Alterity Therapeutics announced that its CEO, David Stamler, will present a corporate update at the Bell Potter Healthcare Virtual Conference, highlighting the company’s advancements in neurodegenerative disease treatments. This presentation underscores Alterity’s commitment to addressing Parkinsonian disorders and its strategic positioning in the biotechnology sector, potentially impacting stakeholders by showcasing its clinical progress and future prospects.

Alterity Therapeutics Reports Promising ATH434 Results in MSA Treatment
Nov 10, 2025

Alterity Therapeutics presented promising data on ATH434 at the 36th International Symposium on the Autonomic Nervous System, highlighting its impact on orthostatic hypotension (OH) and disease progression in Multiple System Atrophy (MSA). The Phase 2 trial results showed that ATH434 stabilizes symptoms and enhances efficacy, particularly in the higher dose group, offering valuable insights for Phase 3 development. This progress underscores ATH434’s potential as a meaningful treatment option for MSA, with ongoing planning for Phase 3 trials and upcoming FDA interactions.

Alterity Therapeutics Advances MSA Treatment with Promising ATH434 Trial Results
Oct 31, 2025

Alterity Therapeutics has reported promising results from its ATH434 trials, indicating a strengthened efficacy signal at high doses and a potential market opportunity of USD $2.4 billion in MSA treatment. The company is actively engaging with the FDA to advance ATH434 to Phase 3 trials, with a cash balance of A$54.56M as of September 2025, underscoring its commitment to developing a first-in-class therapy for MSA.

Alterity Therapeutics Announces 2025 Annual General Meeting
Oct 21, 2025

Alterity Therapeutics Limited has announced its Annual General Meeting scheduled for November 21, 2025, at Deloitte Australia’s offices in Melbourne. The company emphasizes the importance of shareholders submitting proxy forms and questions in advance to facilitate a well-prepared meeting. This announcement highlights Alterity’s commitment to transparent communication with its stakeholders and adherence to new provisions under the Corporations Act.

Alterity Therapeutics to Present Promising Phase 2 Trial Results for MSA Treatment at 2025 Congress
Oct 1, 2025

Alterity Therapeutics announced that data from its ATH434-201 Phase 2 clinical trial will be presented at the 2025 International Congress of Parkinson’s Disease and Movement Disorders. The trial results showed that ATH434 significantly improved clinical outcomes in MSA patients, demonstrating robust efficacy and safety, and has been granted Fast Track and Orphan Drug Designations by the FDA and European Commission. This development positions Alterity as a key player in the neurodegenerative disease treatment market, potentially offering the first-ever treatment for MSA.

Alterity Therapeutics Projects $2.4 Billion Sales for MSA Drug ATH434
Sep 29, 2025

Alterity Therapeutics has released a new commercial assessment for its lead drug candidate ATH434, aimed at treating Multiple System Atrophy (MSA), estimating potential global peak sales at USD $2.4 billion. The assessment, based on positive Phase 2 trial results, indicates strong interest from neurologists, with over 70% likely to prescribe ATH434 due to its efficacy in slowing disease progression and stabilizing symptoms, positioning Alterity favorably in the neurodegenerative treatment market.

Alterity Therapeutics Announces Director’s Interest Change
Sep 17, 2025

Alterity Therapeutics has announced a change in the director’s interest notice, specifically regarding Brian Meltzer’s holdings. The notice reveals that there was a disposal of 7,000,000 unlisted options expiring on September 17, 2025, at $0.09, with no consideration involved. This change in holdings may impact the company’s stock dynamics and reflects ongoing adjustments in its governance and financial strategies.

Alterity Therapeutics Announces Cessation of 35 Million Securities
Sep 17, 2025

Alterity Therapeutics Limited announced the cessation of 35 million securities due to the expiry of options without exercise or conversion as of September 17, 2025. This cessation may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategy and future growth prospects.

Alterity Therapeutics’ ATH434 Shows Promise in Phase 2 MSA Trial
Sep 15, 2025

Alterity Therapeutics presented data from their Phase 2 clinical trial of ATH434 at the American Neurological Association Annual Meeting, showing the drug’s efficacy in slowing disease progression in Multiple System Atrophy (MSA) and its favorable safety profile. The trial demonstrated significant improvements in disease severity and motor performance, reinforcing ATH434’s potential as a disease-modifying therapy and generating optimism in the medical community.

Alterity Therapeutics Issues Over 1.6 Billion New Shares
Sep 15, 2025

Alterity Therapeutics has announced the issuance of over 1.6 billion fully paid ordinary shares, as per the regulations of the Corporations Act. This move is part of the company’s strategy to raise capital without the need for disclosure under Part 6D.2 of the Corporations Act, indicating compliance with necessary legal provisions and transparency requirements, which may impact its financial positioning and stakeholder confidence.

Alterity Therapeutics Announces Quotation of New Securities on ASX
Sep 15, 2025

Alterity Therapeutics Limited announced the quotation of 1,666,666,663 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 15, 2025. This move is part of a previously announced transaction, potentially enhancing the company’s financial flexibility and market presence, which could have implications for its strategic initiatives and stakeholder interests.

Alterity Therapeutics Announces Major Securities Issue
Sep 8, 2025

Alterity Therapeutics Limited announced a proposed issue of 1,666,666,663 ordinary fully paid securities, with the issue date set for September 15, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s financial standing and market position by increasing its capital base, which may support ongoing research and development efforts.

Alterity Therapeutics Secures A$20 Million to Advance Neurodegenerative Disease Treatment
Sep 8, 2025

Alterity Therapeutics has successfully raised A$20.0 million through a strategic placement of shares to international and Australian investors, strengthening its financial position. This funding will support the continued development of ATH434, a treatment for Multiple System Atrophy, and enhance the company’s clinical and regulatory strategies, positioning it for potential strategic partnerships.

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.Date of analysis: Nov 01, 2025