tiprankstipranks
Trending News
More News >
Aerovate Therapeutics, Inc. (AVTE)
NASDAQ:AVTE
US Market

Aerovate Therapeutics (AVTE) AI Stock Analysis

Compare
138 Followers

Top Page

AV

Aerovate Therapeutics

(NASDAQ:AVTE)

Rating:39Underperform
Price Target:
Aerovate Therapeutics' stock score reflects substantial financial challenges, including zero revenue and growing losses, which heavily weigh on the overall score. While there is positive momentum in technical analysis and significant corporate events such as the merger with Jade Biosciences, the negative valuation and financial instability are major concerns. The stock remains highly speculative with risks due to its financial performance.

Aerovate Therapeutics (AVTE) vs. SPDR S&P 500 ETF (SPY)

Aerovate Therapeutics Business Overview & Revenue Model

Company DescriptionAerovate Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of drugs that enhance the lives of patients with rare cardiopulmonary diseases in the United States. The company focuses on advancing AV-101, a dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, which is in Phase 2b/Phase 3 trial. Aerovate Therapeutics, Inc. was incorporated in 2018 and is headquartered in Waltham, Massachusetts.
How the Company Makes MoneyAerovate 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
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
136.00K0.000.000.000.000.00
Gross Profit
52.00K0.00-96.00K-68.00K-15.00K-1.00K
EBIT
-88.40M-74.60M-81.41M-53.24M-23.02M-8.89M
EBITDA
-88.32M-74.31M-81.31M-53.17M-23.01M-8.89M
Net Income Common Stockholders
-85.24M-69.63M-75.52M-51.51M-22.96M-9.04M
Balance SheetCash, Cash Equivalents and Short-Term Investments
99.33M78.62M122.44M129.22M167.38M4.57M
Total Assets
106.82M80.33M127.42M135.30M175.36M4.71M
Total Debt
774.00K417.00K675.00K1.09M574.00K0.00
Net Debt
-8.35M-33.33M-22.82M-21.31M-53.62M-4.57M
Total Liabilities
15.92M3.90M17.96M8.56M2.94M18.06M
Stockholders Equity
90.90M76.43M109.46M126.74M172.42M-13.34M
Cash FlowFree Cash Flow
-65.77M-71.20M-56.92M-39.32M-27.58M-7.86M
Operating Cash Flow
-65.71M-71.20M-56.78M-39.12M-27.40M-7.86M
Investing Cash Flow
32.48M56.03M11.88M6.93M-113.43M0.00
Financing Cash Flow
120.09M25.43M46.00M396.00K190.46M8.92M

Aerovate Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.09
Price Trends
50DMA
9.47
Negative
100DMA
9.36
Negative
200DMA
8.65
Negative
Market Momentum
MACD
-0.14
Positive
RSI
40.51
Neutral
STOCH
8.90
Positive
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 10.09 is above the 20-day moving average (MA) of 9.86, above the 50-day MA of 9.47, and above the 200-day MA of 8.65, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 8.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVTE.

Aerovate Therapeutics Risk Analysis

Aerovate Therapeutics disclosed 59 risk factors in its most recent earnings report. Aerovate Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Failure to complete the merger may result in either Jade or us paying a termination fee to the other party, and could harm our common stock price and future business and operations of each company. Q3, 2024
2.
Our stockholders and Jade stockholders may not realize a benefit from the Merger commensurate with the ownership dilution they will experience in connection with the Merger, including the conversion of Jade common stock issued in the Concurrent Investment. Q3, 2024
3.
Our securityholders and Jade securityholders will generally have a reduced ownership and voting interest in, and will exercise less influence over the management of, the combined company following the completion of the Merger as compared to their current ownership and voting interests in the respective companies. Q3, 2024

Aerovate Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$5.24B3.27-45.39%2.80%16.77%-0.07%
50
Neutral
$91.36M-71.46%17.20%
43
Neutral
$73.98M-456.32%0.13%
39
Underperform
$325.26M-59.01%44.04%
36
Underperform
$87.84M-76.21%23.55%
33
Underperform
$141.59M41.824.14%33.97%
30
Underperform
$119.50M-744.59%27.65%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AVTE
Aerovate Therapeutics
7.55
-72.39
-90.56%
ENTX
Entera Bio
2.07
0.03
1.47%
BDTX
Black Diamond Therapeutics
2.58
-2.53
-49.51%
SRZN
Surrozen
8.50
-2.70
-24.11%
ELTX
Elicio Therapeutics
7.83
-0.17
-2.12%
TNYA
Tenaya Therapeutics
0.63
-3.13
-83.24%

Aerovate Therapeutics Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Aerovate Therapeutics Completes Merger with Jade Biosciences
Positive
May 1, 2025

On April 28, 2025, Jade Biosciences, Inc. completed its merger with Aerovate Therapeutics, Inc., and will operate under the name Jade Biosciences, trading on Nasdaq under the ticker ‘JBIO’. The merger was accompanied by a successful private placement raising approximately $300 million, which includes the conversion of $95 million in previously issued convertible notes. This financial boost is expected to advance Jade’s portfolio of therapies for autoimmune diseases, with its lead candidate, JADE-001, anticipated to enter clinical trials in the latter half of 2025. The merger and financial developments are significant for Jade’s strategic positioning in the biopharma industry, potentially enhancing its capabilities to deliver innovative treatments for autoimmune conditions.

Spark’s Take on AVTE Stock

According to Spark, TipRanks’ AI Analyst, AVTE is a Underperform.

Aerovate Therapeutics receives a low stock score due to its poor financial performance characterized by zero revenue, significant losses, and negative cash flows. While technical indicators show some positive momentum, and recent corporate events offer potential improvements, the substantial financial risks and unfavorable valuation weigh heavily on the overall score.

To see Spark’s full report on AVTE stock, click here.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Jade Biosciences Highlights JADE-001 Progress in Presentation
Positive
Apr 29, 2025

On April 29, 2025, Jade Biosciences released an updated corporate presentation highlighting their progress in developing therapies for autoimmune diseases. The presentation emphasized the potential of their lead candidate, JADE-001, as a best-in-class treatment for IgA nephropathy, a market estimated to be worth over $10 billion. The company has secured funding through 2027 and plans to initiate clinical trials for JADE-001 in the first half of 2026, aiming to address the unmet need for disease-modifying therapies in the IgAN market.

Spark’s Take on AVTE Stock

According to Spark, TipRanks’ AI Analyst, AVTE is a Underperform.

Aerovate Therapeutics faces major financial risks due to zero revenue, significant losses, and cash flow challenges. The technical outlook is neutral, while valuation remains poor. However, the merger with Jade Biosciences and special dividend announcement provide a positive note, slightly improving the stock’s speculative outlook.

To see Spark’s full report on AVTE stock, click here.

M&A TransactionsShareholder MeetingsStock Split
Aerovate Therapeutics Approves Merger with Jade Biosciences
Positive
Apr 21, 2025

On April 16, 2025, Aerovate Therapeutics held a special meeting where stockholders approved a proposed merger with Jade Biosciences and all related proposals. This includes a reverse stock split and an increase in authorized shares, which are expected to impact the company’s stock structure and market presence. The merger aims to combine Aerovate’s focus on rare cardiopulmonary diseases with Jade’s expertise in autoimmune diseases, potentially enhancing their market positioning and offering new opportunities for stakeholders.

Spark’s Take on AVTE Stock

According to Spark, TipRanks’ AI Analyst, AVTE is a Underperform.

Aerovate Therapeutics’ stock score is primarily impacted by its poor financial performance, characterized by zero revenue, growing losses, and negative cash flows. While the technical outlook is neutral, the valuation remains challenging due to a negative P/E ratio. However, the recent corporate event involving a special dividend and potential merger offers a positive development that temporarily boosts the score.

To see Spark’s full report on AVTE stock, click here.

M&A TransactionsDividends
Aerovate Announces Special Dividend Amid Jade Merger
Positive
Apr 9, 2025

On April 9, 2025, Aerovate Therapeutics announced a special cash dividend of $69.6 million, or approximately $2.40 per share, in connection with its proposed merger with Jade Biosciences. The dividend is contingent upon the merger’s closing, expected around April 28, 2025, pending stockholder approval and satisfaction of all conditions. This announcement highlights Aerovate’s strategic move to merge with Jade, a company developing therapies for autoimmune diseases, potentially impacting stakeholders with changes in ownership and financial distributions.

Spark’s Take on AVTE Stock

According to Spark, TipRanks’ AI Analyst, AVTE is a Underperform.

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.

To see Spark’s full report on AVTE stock, click here.

M&A TransactionsDividends
Aerovate Therapeutics Announces Merger with Jade Biosciences
Neutral
Apr 7, 2025

On April 7, 2025, Aerovate Therapeutics announced a proposed merger with Jade Biosciences, which includes a cash dividend for Aerovate’s pre-merger stockholders ranging from $67.6 to $69.6 million. The merger is subject to stockholder approval and other conditions, with the closing expected by April 30, 2025, potentially impacting the company’s financial positioning and stakeholder interests.

Spark’s Take on AVTE Stock

According to Spark, TipRanks’ AI Analyst, AVTE is a Underperform.

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.

To see Spark’s full report on AVTE stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.