Biomea Fusion (BMEA) AI Stock Analysis

• Market Cap: $83.35M
• Dividend Yield: N/A
• Average Volume (3M): 620.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: N/A
• EPS Growth: -19.65%
• Country: US
• Employees: 107
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -4.00
• Shares Outstanding: 36,238,686
• 10 Day Avg. Volume: 668,720
• 30 Day Avg. Volume: 620,896
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.00
• 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: $21.40
• Price Target Upside: 830.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Biomea Fusion's overall score reflects its financial challenges, negative technical indicators, and poor valuation. However, positive developments in its diabetes treatment pipeline provide a potential growth avenue and slightly improve the outlook.

Positive Factors

Clinical Trial Results

Biomea announced positive topline results from the Phase 2 COVALENT-111 clinical trial evaluating icovamenib in patients with T2D.

Drug Efficacy

Icovamenib exhibited a significant mean HbA1c reduction of 1.47% and a 53% increase in C-peptide after 14 weeks off-therapy in severe insulin-deficient diabetes patients, with no safety concerns.

Negative Factors

Clinical Development

Experts look forward to upcoming later-stage clinical development steps for icovamenib, highlighting its potential for combinations with GLP-1 receptor agonists and as an adjuvant for type 1 diabetes.

Treatment Duration

Icovamenib's proposed mechanism of action leads to a persistent increase in C-peptide levels, suggesting restoration of endogenous insulin production and enhanced β-cell function.

Biomea Fusion Business Overview & Revenue Model

Company Description

Biomea Fusion, Inc., a biopharmaceutical company, focuses on the discovery and development of covalent small molecule drugs to treat patients with genetically defined cancers and metabolic diseases. Its lead product candidate is BMF-219, an orally bioavailable, potent, and selective covalent inhibitor of menin, a transcriptional regulator in oncogenic signaling in multiple cancers. The company was incorporated in 2017 and is headquartered in Redwood City, California.

How the Company Makes Money

Biomea Fusion makes money primarily through the development and eventual commercialization of its therapeutic candidates. As a clinical-stage company, its revenue model heavily relies on securing funding through public offerings, private placements, and collaborations with larger pharmaceutical companies. Revenue is also generated through milestone payments and royalties from partnerships and licensing agreements. The company's success in advancing its pipeline through clinical trials and gaining regulatory approvals is crucial for future earnings potential.

Biomea Fusion Financial Statement Overview

Summary

Biomea Fusion has shown potential with its new revenue stream, but it remains unprofitable with significant cash flow challenges. The balance sheet is strong with low leverage; however, achieving sustainable profitability is crucial for long-term health.

Income Statement

Biomea Fusion's income statement shows significant improvements in revenue with $6.14 million reported in the TTM, indicating a positive shift from previous years of zero revenue. However, the company remains unprofitable, with a net loss of $144 million. The gross profit margin stands at 61.75%, a positive aspect, yet high EBIT and EBITDA losses reflect ongoing operational challenges.

Balance Sheet

The company maintains a strong equity position with $75.97 million, and a low debt level, reflected in a debt-to-equity ratio of 0.13. However, the return on equity is negative due to ongoing net losses. The equity ratio of 68.81% suggests a solid financial foundation, although continued losses could erode this strength.

Cash Flow

Biomea Fusion's cash flow statement highlights a challenging cash position, with a negative operating cash flow of $112.7 million in the TTM. The free cash flow has deteriorated further compared to the previous period, indicating increased cash burn. The company must focus on improving cash generation to support its operations sustainably.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.14M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
3.79M	-4.20M	-1.26M	-953.00K	-132.00K	0.00
	EBIT
-151.32M	-126.14M	-83.63M	-41.67M	-5.33M	-1.20M
	EBITDA
-149.63M	-124.62M	-82.94M	-41.42M	-5.32M	0.00
	Net Income Common Stockholders
-144.01M	-117.25M	-80.02M	-41.22M	-5.32M	-1.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
239.00K	176.87M	113.40M	175.74M	61.70M	239.00K
	Total Assets
0.00	199.93M	129.31M	185.71M	62.53M	265.00K
	Total Debt
0.00	10.30M	2.29M	2.85M	259.00K	0.00
	Net Debt
239.00K	-166.57M	-111.11M	-172.89M	-61.44M	-239.00K
	Total Liabilities
0.00	30.69M	20.77M	6.92M	57.36M	286.00K
	Stockholders Equity
-21.00K	169.24M	108.54M	178.78M	5.17M	-21.00K
Cash Flow		Free Cash Flow
-113.02M	-99.96M	-63.45M	-38.61M	-4.51M	-1.28M
	Operating Cash Flow
-112.73M	-96.59M	-62.42M	-35.44M	-4.46M	-1.28M
	Investing Cash Flow
-288.00K	-2.22M	27.34M	-33.35M	-51.00K	0.00
	Financing Cash Flow
1.88M	163.80M	1.24M	153.19M	65.97M	1.44M

Biomea Fusion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMEA, the sentiment is Negative. The current price of 2.3 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 3.29, and below the 200-day MA of 5.95, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 28.48 is Positive, neither overbought nor oversold. The STOCH value of 11.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BMEA.

Biomea Fusion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOLD	61 Neutral	$2.59B	―	-31.68%	―	32.29%	64.39%
RVMD	51 Neutral	$6.94B	―	-29.33%	―	-100.00%	5.49%
BMEA	49 Neutral	$83.35M	―	-104.51%	―	―	-19.65%
Sector *	48 Neutral	$6.84B	1.02	-53.11%	2.50%	16.84%	0.92%
CRIS	48 Neutral	$19.64M	―	-634.71%	―	0.44%	16.44%
KURA	45 Neutral	$569.32M	―	-42.91%	―	―	2.90%
IGMS	29 Underperform	$74.12M	―	-155.76%	―	25.77%	32.56%

Biomea Fusion Corporate Events

Biomea Fusion Advances Diabetes Treatment with Positive Study Results

Biomea Fusion announced positive topline results from its Phase II COVALENT-111 study evaluating icovamenib for type 2 diabetes, showing significant reductions in HbA1c levels in patients, particularly in insulin-deficient subgroups. The study demonstrated icovamenib’s potential as a novel diabetes treatment with a favorable safety profile, strengthening Biomea’s position in advancing this promising therapy, despite prior FDA-imposed clinical hold challenges.