Aerovate Therapeutics (AVTE) AI Stock Analysis

• Market Cap: $72.17M
• Dividend Yield: N/A
• Average Volume (3M): 72.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: N/A
• EPS Growth: 14.71%
• Country: US
• Employees: 30
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): -2.44
• Shares Outstanding: 28,985,020
• 10 Day Avg. Volume: 69,672
• 30 Day Avg. Volume: 72,679
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Aerovate Therapeutics' stock score is primarily impacted by its poor financial performance, characterized by zero revenue, growing losses, and negative cash flows. Technical indicators provide a neutral outlook, neither suggesting a strong buy nor sell signal. The valuation is unfavorable due to the negative P/E ratio, reflecting the company's unprofitability. Overall, the stock is highly speculative with substantial financial risks.

Aerovate Therapeutics Business Overview & Revenue Model

Company Description

Aerovate Therapeutics (AVTE) is a biotechnology company focused on developing innovative therapies for severe respiratory diseases. The company operates within the pharmaceutical and biotechnology sectors, specializing in the research and development of novel treatments aimed at addressing unmet medical needs in pulmonary arterial hypertension (PAH) and other serious conditions. Aerovate's core product pipeline includes AV-101, an inhaled dry powder formulation of imatinib, designed to improve the lives of patients suffering from PAH.

How the Company Makes Money

Aerovate Therapeutics makes money primarily through the development and commercialization of its therapeutic products. The company aims to generate revenue by bringing its lead product candidate, AV-101, to market, pending successful clinical trials and regulatory approval. Revenue streams are expected to include sales of AV-101 upon commercialization, potential partnerships or collaborations with other pharmaceutical companies, and licensing agreements that may provide upfront payments, milestone payments, and royalties. Additionally, Aerovate may seek grants or funding from health organizations to support its research and development efforts.

Aerovate Therapeutics Financial Statement Overview

Summary

Aerovate Therapeutics faces significant financial challenges with zero revenue and growing losses on the income statement, declining equity on the balance sheet, and negative cash flows. While liquidity remains adequate in the short term due to financing, the lack of revenue generation and profitability poses substantial risks to achieving financial stability.

Income Statement

Aerovate Therapeutics has consistently reported zero total revenue over the years, indicating a lack of sales or revenue-generating activities. The company exhibits substantial and growing EBIT and net income losses, reflecting high operational and net losses with no gross profit margin due to no revenue. The absence of revenue growth and negative margins substantially weaken its income statement performance.

Balance Sheet

The company's balance sheet shows a relatively strong cash position compared to its liabilities, indicating good liquidity. However, the stockholders' equity has sharply declined over the years, with negative equity observed in earlier periods, suggesting financial instability. The debt-to-equity ratio is low due to minimal debt, but the overall financial health is concerning due to the continuous erosion of equity.

Cash Flow

Aerovate Therapeutics has a history of negative operating and free cash flows, indicating cash burn without offsetting revenue. However, the company has managed to maintain cash through financing activities, albeit not sustainably. The absence of free cash flow growth and high negative cash flow metrics showcase significant cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-96.00K	-68.00K	-15.00K	-1.00K
	EBIT
-74.60M	-81.41M	-53.24M	-23.02M	-8.89M
	EBITDA
-74.31M	-81.31M	-53.17M	-23.01M	-8.89M
	Net Income Common Stockholders
-69.63M	-75.52M	-51.51M	-22.96M	-9.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.62M	122.44M	129.22M	167.38M	4.57M
	Total Assets
80.33M	127.42M	135.30M	175.36M	4.71M
	Total Debt
417.00K	675.00K	1.09M	574.00K	0.00
	Net Debt
-33.33M	-22.82M	-21.31M	-53.62M	-4.57M
	Total Liabilities
3.90M	17.96M	8.56M	2.94M	18.06M
	Stockholders Equity
76.43M	109.46M	126.74M	172.42M	-13.34M
Cash Flow		Free Cash Flow
-71.20M	-56.92M	-39.32M	-27.58M	-7.86M
	Operating Cash Flow
-71.20M	-56.78M	-39.12M	-27.40M	-7.86M
	Investing Cash Flow
56.03M	11.88M	6.93M	-113.43M	0.00
	Financing Cash Flow
25.43M	46.00M	396.00K	190.46M	8.92M

Aerovate Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTE, the sentiment is Negative. The current price of 2.49 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.49, and above the 200-day MA of 2.24, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVTE.

Aerovate Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTHR	78 Outperform	$13.14B	11.89	19.23%	―	23.63%	25.66%
ARQT	56 Neutral	$1.75B	―	-113.76%	―	229.74%	70.23%
PULM	53 Neutral	$19.72M	―	-70.96%	―	6.96%	32.32%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
MREO	46 Neutral	$308.74M	―	-58.31%	―	―	―
AVTE	36 Underperform	$72.17M	―	-74.91%	―	―	14.71%

Aerovate Therapeutics Corporate Events

Aerovate Therapeutics and Jade Biosciences Announce Strategic Merger

Aerovate Therapeutics and Jade Biosciences have announced a merger focusing on advancing Jade’s innovative treatments for autoimmune diseases. The merger, funded by an oversubscribed $300 million investment, will prioritize the development of JADE-001, a promising therapy for IgA nephropathy. Aerovate stockholders will receive a $65 million dividend, while pre-merger Jade stockholders will hold 98.4% of the new entity. This strategic move aims to leverage Jade’s expertise and financial backing to achieve significant advancements in autoimmune disease therapies.