Avecho Biotechnology Limited (AVE) AI Stock Analysis

• Market Cap: AU$33.06M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 306.88%
• EPS Growth: N/A
• Country: AU
• Employees: 29
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): >-0.01
• Shares Outstanding: 3,673,463,600
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.06
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 5.51
• P/FCF Ratio: -1.57
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.01 ▲(0.00% Upside)

The score is held down primarily by persistent losses and ongoing cash burn despite improved 2024 revenue and gross margin. Limited technical indicator data reduces confidence in momentum assessment, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Patent Allowances

Securing patents in major markets strengthens Avecho's intellectual property, providing a competitive edge and supporting future commercial efforts.

Phase III Trial Progress

Advancing a Phase III trial positions Avecho to potentially lead in the Australian CBD market, tapping into the growing sleep aids industry.

Revenue Growth

Significant revenue growth indicates improving market traction and product adoption, enhancing long-term business prospects.

Negative Factors

Cash Flow Weakness

Persistent negative cash flow indicates reliance on external funding, posing risks to financial stability and operational continuity.

Structural Unprofitability

Ongoing losses and weak operating margins suggest challenges in achieving sustainable profitability, impacting long-term viability.

Equity Decline

Significant equity decline reflects potential capital erosion, raising concerns about financial health and shareholder value.

Avecho Biotechnology Limited Business Overview & Revenue Model

Company Description

Avecho Biotechnology Limited, a biotechnology company, develops, produces, and sells products using its patented platform technology, Targeted Penetration Matrix (TPM) drug delivery system for the pharmaceutical, skin care, animal health, and nutrition industries. It offers TPM and Vital ET products for use in drug delivery and cosmetic formulations; and develops TPM/Oxymorphone and TPM/Oxycodone. The company's human health portfolio covers delivery of pharmaceutical products through gels, injectables, and patches. It also provides non-antibiotic feed additive products to enhance feed efficiency and the health of livestock animals. The company has a collaboration with Lambert Initiative at the University of Sydney to conduct a study to examine whether topically applied cannabidiol can provide relief from symptoms of osteoarthritis. It serves customers in Australia, Switzerland, India, and internationally. The company was formerly known as Phosphagenics Limited and changed its name to Avecho Biotechnology Limited in May 2019. Avecho Biotechnology Limited was incorporated in 1992 and is based in Clayton, Australia.

How the Company Makes Money

Avecho Biotechnology Limited generates revenue primarily through the development and licensing of its proprietary TPM technology to pharmaceutical and healthcare companies. The company earns income by entering into licensing agreements with partners who seek to incorporate TPM into their own products to enhance drug delivery and efficacy. Additionally, Avecho may receive milestone payments and royalties based on the commercial success of products developed using its technology. Strategic collaborations and partnerships with industry players are significant contributors to Avecho's earnings, as these alliances help the company to expand its reach and application of its technology across different markets.

Avecho Biotechnology Limited Financial Statement Overview

Summary

Revenue and gross margin improved materially in 2024, but the company remains structurally unprofitable with a large net loss and very weak operating margins. Cash flow is a major constraint with continued negative operating and free cash flow, and equity has declined meaningfully despite moderate leverage.

Income Statement

Revenue rebounded sharply in 2024 (annual revenue up ~234% to ~A$1.13m), and gross margin improved to ~59% (vs. negative gross margin in 2023). However, the business remains structurally unprofitable: 2024 net loss was ~A$3.1m with deeply negative operating profitability (EBIT margin roughly -271%), and losses have persisted in every year since 2020, with profitability only seen in 2019. Overall, top-line momentum is improving, but the cost base still overwhelms current revenue.

Balance Sheet

Leverage is moderate in 2024 with debt-to-equity around 0.33, suggesting the company is not heavily debt-funded. That said, shareholder equity has declined meaningfully versus 2023 (from ~A$6.38m to ~A$3.27m), and returns on equity are strongly negative (about -95% in 2024), reflecting ongoing losses and potential capital erosion. Balance sheet risk is more about burn and equity dilution/erosion than near-term debt pressure.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow were negative across 2020–2024 (about -A$4.0m in 2024), indicating continued cash burn. While the 2024 cash burn appears worse than 2023 in absolute terms, free cash flow growth is shown as positive in 2024, implying a modest directional improvement versus the prior period’s trend. Still, cash flow remains reliant on external funding until profitability materially improves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10M	1.13M	473.55K	1.13M	793.60K	384.63K
Gross Profit	662.18K	671.93K	-43.80K	793.12K	507.94K	240.91K
EBITDA	-2.09M	-2.92M	-3.24M	-2.11M	-2.98M	-2.45M
Net Income	-2.28M	-3.12M	-3.44M	-2.34M	-3.42M	-2.63M
Balance Sheet
Total Assets	7.19M	5.00M	7.32M	3.35M	5.25M	3.35M
Cash, Cash Equivalents and Short-Term Investments	5.93M	2.37M	5.50M	1.47M	3.26M	1.87M
Total Debt	57.12K	1.08M	175.15K	246.07K	93.91K	166.23K
Total Liabilities	6.37M	1.73M	941.54K	920.66K	709.36K	700.17K
Stockholders Equity	825.16K	3.27M	6.38M	2.42M	4.54M	2.65M
Cash Flow
Free Cash Flow	-1.07M	-3.97M	-3.18M	-1.72M	-3.30M	-1.43M
Operating Cash Flow	-1.07M	-3.97M	-3.18M	-1.67M	-3.10M	-1.42M
Investing Cash Flow	-15.73K	-15.73K	0.00	-53.12K	-202.82K	-5.15K
Financing Cash Flow	406.02K	854.59K	7.22M	-78.22K	4.69M	-82.50K

Avecho Biotechnology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CHM	45 Neutral	AU$11.05M	―	-469.35%	―	―	46.28%
AVE	44 Neutral	AU$33.06M	-9.09	-143.71%	―	306.88%	―
IMC	44 Neutral	AU$12.74M	-1.55	-49.96%	―	48.63%	25.66%
NOX	42 Neutral	AU$23.38M	-4.61	-157.93%	―	―	-36.89%
1AI	41 Neutral	AU$35.46M	-46.00	-30.33%	―	―	―
MEM	39 Underperform	AU$16.12M	-3.57	-90.15%	―	-93.83%	20.00%

Avecho Biotechnology Limited Corporate Events

Avecho Nears Completion of Recruitment for Phase III CBD Trial

Avecho Biotechnology has announced nearing the completion of recruitment for its pivotal Phase III clinical trial for a CBD-enhanced capsule aimed at treating insomnia, with 190 out of the targeted 210 participants already dosed. The successful outcome of this trial could position Avecho as a leader in the Australian CBD market, particularly since regulatory changes allow over-the-counter CBD sales. This progress represents a critical step towards gaining market approvals and tapping into the rapidly growing sleep aids industry.

Avecho Secures US and European Patent Allowances for CBD Soft-Gel Capsule

Avecho Biotechnology Limited has received patent allowances in the US and Europe for its proprietary CBD soft-gel capsule formulation, which is in Phase III clinical trials for insomnia. These patents, expected to be granted by the end of FY26, will protect the formulation until at least 2040, enhancing Avecho’s intellectual property in major markets. This development strengthens Avecho’s position in cannabinoid formulation technology and supports future regulatory and commercial efforts. The ongoing clinical trial, the largest of its kind, aims to support the registration of the CBD TPM soft-gel capsule for insomnia treatment, potentially allowing Avecho to capitalize on a significant market opportunity in Australia.

Avecho Biotechnology Announces Quotation of 500 Million Securities on ASX

Avecho Biotechnology Limited has announced the issuance of 500,000,000 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code AVE. This move is part of a previously announced transaction, potentially impacting the company’s market presence and providing additional capital for its operations, thereby strengthening its position in the biotechnology sector.

Avecho Biotechnology Expands Share Issuance to Boost Strategic Initiatives

Avecho Biotechnology Limited has announced the issuance of 500,000,000 fully paid ordinary shares and 20,000,000 listed options as part of a recent placement. This move, conducted without disclosure to investors under the Corporations Act, signifies the company’s compliance with relevant legal provisions and its ongoing commitment to transparency. The issuance is expected to support Avecho’s strategic initiatives in enhancing its market presence and operational capabilities.

Avecho Advances Phase III CBD Insomnia Trial with New Funding

Avecho Biotechnology Limited has made significant progress in its Phase III clinical trial for a CBD TPM soft-gel capsule aimed at treating insomnia, with 160 patients dosed and interim results expected in the first half of 2026. The company completed a $2.5 million capital raise to accelerate manufacturing and regulatory preparations for a Therapeutic Goods Administration submission. This trial, in collaboration with Sandoz AG, positions Avecho to potentially introduce the first over-the-counter CBD insomnia treatment in Australia, while also exploring international licensing opportunities.

Avecho Biotechnology Announces Proposed Issue of 20 Million Securities

Avecho Biotechnology Limited announced a proposed issue of 20 million securities under the code AVEOA, set to expire on May 10, 2026. This strategic move is aimed at raising capital to support the company’s ongoing projects and strengthen its market position, potentially impacting stakeholders by enhancing the company’s operational capabilities and financial stability.

Avecho Biotechnology to Issue 500 Million New Securities

Avecho Biotechnology Limited has announced a proposed issue of 500,000,000 ordinary fully paid securities, with the issue date set for November 3, 2025. This move is part of a placement or other type of issue, which could potentially impact the company’s market positioning by increasing its capital base and providing additional resources for its operations.

Avecho Biotechnology Secures $2.5M to Advance CBD Capsule Development

Avecho Biotechnology Limited has secured $2.5 million through a placement to institutional and sophisticated investors, which will be used to accelerate commercial manufacturing activities for its CBD TPM® capsule. This funding will support the company’s efforts to complete the necessary manufacturing work for a future TGA submission, enhance commercial manufacturing capabilities, and prepare for potential market expansion following successful Phase III trial outcomes. The placement positions Avecho to advance its clinical and commercial objectives, potentially impacting its market positioning and stakeholder interests.

Avecho Biotechnology Advances Cannabidiol Product for Insomnia

Avecho Biotechnology Limited is advancing its efforts in the pharmaceutical sector by developing a cannabidiol product aimed at treating insomnia. This development signifies a strategic move to leverage their TPM delivery platform, potentially enhancing their market position and offering new opportunities for stakeholders in the growing field of cannabinoid-based therapies.