ArriVent BioPharma, Inc. (AVBP) AI Stock Analysis

• Market Cap: $927.59M
• Dividend Yield: N/A
• Average Volume (3M): 431.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: N/A
• EPS Growth: -75.31%
• Country: US
• Employees: 52
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.83
• Shares Outstanding: 41,281,360
• 10 Day Avg. Volume: 377,890
• 30 Day Avg. Volume: 431,970
• PEG Ratio: -0.58
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.94
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -3.36
• 1Y Price Target: $41.33
• Price Target Upside: 88.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): -3.9
• Revenue Forecast (FY): $650.00K

• Rating: 45 Neutral
• Price Target: $20.50 ▼(-6.39% Downside)

The score is primarily held back by pre-revenue operations with widening losses and accelerating cash burn, which elevates financing risk despite a strong, low-debt balance sheet. Technical signals are soft and the negative P/E with no dividend provides little valuation support.

Positive Factors

Pipeline Advancement

The initiation of the Phase 3 ALPACCA trial for firmonertinib marks significant progress in ArriVent's pipeline, potentially leading to a new treatment option for EGFR PACC mutant NSCLC, which could drive future revenue and market position.

Management Strength

With over 25 years of experience, Brent Rice's appointment as CCO strengthens ArriVent's leadership team, enhancing its capability to commercialize its pipeline effectively and navigate the competitive biotech landscape.

Regulatory Progress

The FDA Breakthrough Therapy Designation for firmonertinib in NSCLC positions ArriVent for expedited development and review, potentially accelerating time-to-market and enhancing competitive advantage.

Negative Factors

Cash Burn

The increasing cash burn rate, with negative cash flows, highlights financial strain and reliance on external funding, posing risks to sustainability if revenue generation is delayed.

Pre-Revenue Status

Being pre-revenue with widening losses underscores the company's dependency on future pipeline success, increasing financial risk and uncertainty until commercialization is achieved.

Dependence on External Funding

The need for external funding due to widening losses and high cash burn could dilute equity and increase financial risk, impacting long-term financial health if not managed effectively.

ArriVent BioPharma, Inc. Business Overview & Revenue Model

Company Description

ArriVent BioPharma, Inc. operates as a clinical-stage biopharmaceutical company that engages in the identification, development, and commercialization of medicines for the unmet medical needs of patients with cancers. It also engages in the development and commercialization of targeted cancer therapies for non-small-cell lung cancer (NSCLC) and other solid tumors. The company develops Furmonertinib, an epidermal growth factor receptor mutant-selective tyrosine kinase inhibitor that is in phase 3 clinical trial for the treatment of NSCLC patients; and ARR-002. It has strategic collaborations with Aarvik Therapeutics Inc. The company was incorporated in 2021 and is based in Newtown Square, Pennsylvania.

How the Company Makes Money

ArriVent BioPharma, Inc. generates revenue through the development and commercialization of its proprietary drug candidates. The company's key revenue streams include licensing agreements with other pharmaceutical companies, sales of its approved therapies, and potential milestone payments and royalties from its strategic partnerships. These partnerships often involve collaborations for research and development, as well as co-commercialization opportunities, allowing ArriVent to expand its market reach and accelerate product development.

ArriVent BioPharma, Inc. Financial Statement Overview

Summary

ArriVent BioPharma, Inc. is in the growth phase typical for biotech firms, with no revenue but substantial R&D investments. The balance sheet shows strong equity and low leverage, while cash flows indicate a need for external financing to support operations.

Income Statement

ArriVent BioPharma, Inc. showed no revenue or gross profit, with increasing net losses over the years. EBIT and EBITDA margins are negative, reflecting high operating losses, typical for a biotech company in the development phase.

Balance Sheet

The company's balance sheet shows strong equity and low debt levels, with a low debt-to-equity ratio. Stockholders' equity has increased over the years, indicating good financial stability despite operating losses.

Cash Flow

Cash flow analysis reveals negative free cash flow due to high operating expenses, typical for biotech firms focusing on R&D. However, the company has been successful in raising financing, maintaining substantial cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-156.85M	-80.49M	-74.59M	0.00	-51.61M
Net Income	-151.40M	-80.49M	-69.33M	-36.91M	-51.61M
Balance Sheet
Total Assets	326.56M	274.94M	163.10M	182.83M	43.04M
Cash, Cash Equivalents and Short-Term Investments	300.27M	218.86M	150.39M	163.37M	37.28M
Total Debt	56.00K	176.00K	317.00K	139.00K	0.00
Total Liabilities	21.56M	17.29M	11.80M	8.37M	1.82M
Stockholders Equity	305.00M	257.65M	151.30M	174.46M	41.22M
Cash Flow
Free Cash Flow	-146.08M	-70.21M	-55.84M	-43.63M	-12.59M
Operating Cash Flow	-146.08M	-70.21M	-55.84M	-43.63M	-12.59M
Investing Cash Flow	-192.49M	-192.47M	0.00	0.00	-40.00M
Financing Cash Flow	168.39M	186.58M	42.86M	169.72M	89.87M

ArriVent BioPharma, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVBP, the sentiment is Positive. The current price of 21.9 is above the 20-day moving average (MA) of 21.11, above the 50-day MA of 21.42, and above the 200-day MA of 20.41, indicating a bullish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVBP.

ArriVent BioPharma, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSHA	53 Neutral	$1.38B	-13.82	-64.93%	―	-36.36%	-945.72%
IOVA	52 Neutral	$944.78M	―	-53.89%	―	175.62%	19.63%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RLAY	50 Neutral	$1.40B	-4.36	-41.14%	―	-16.50%	33.02%
IVA	47 Neutral	$1.13B	-1.50	―	―	-12.52%	-82.84%
QURE	46 Neutral	$1.38B	-5.01	-165.27%	―	-44.90%	11.49%
AVBP	45 Neutral	$927.59M	―	-51.98%	―	―	-75.31%