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Biomea Fusion (BMEA)
NASDAQ:BMEA
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Biomea Fusion (BMEA) AI Stock Analysis

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BMEA

Biomea Fusion

(NASDAQ:BMEA)

Rating:35Underperform
Price Target:
Biomea Fusion's overall stock score is significantly impacted by its poor financial performance and bearish technical indicators. The company's inability to generate revenue and negative cash flows are major concerns, despite a low debt level. The technical analysis further highlights a negative trend, with the stock trading below key moving averages. Lastly, the lack of positive valuation metrics, such as a negative P/E ratio and absence of a dividend yield, further depresses the score.
Positive Factors
Clinical Trial Results
Biomea announced positive topline results from the Phase 2 COVALENT-111 clinical trial evaluating icovamenib in patients with T2D.
Clinical Trials
Upcoming significant catalysts for icovamenib in Type 2 Diabetes include 52-week follow-up data from the COVALENT-111 Phase 2 study and an FDA Type C meeting update.
Drug Efficacy
Icovamenib amplified all the key benefits of GLP-1-based therapies, including improved glycemic and body weight control.
Negative Factors
Financial Adjustments
Research and development and SG&A spending are reduced to exclude oncology-related expenses, reflecting a 35% staff cut.
Stock Dilution
Target reduced to $4 on significant dilution.
Strategic Realignment
The price target for Biomea Fusion is lowered to $9 due to a strategic realignment focusing solely on metabolic disease and no longer pursuing oncology.

Biomea Fusion (BMEA) vs. SPDR S&P 500 ETF (SPY)

Biomea Fusion Business Overview & Revenue Model

Company DescriptionBiomea 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 MoneyBiomea Fusion makes money through the development and eventual commercialization of its proprietary small molecule drug candidates. The company invests in research and development to advance its drugs through clinical trials. Revenue generation is primarily expected to occur upon successful commercialization of these drugs, either directly or through partnerships and licensing agreements with larger pharmaceutical companies. Additionally, Biomea may engage in strategic collaborations to co-develop treatments, which can provide milestone payments and royalties contingent upon the success of the drug candidates.

Biomea Fusion Financial Statement Overview

Summary
Biomea Fusion is facing significant challenges in financial performance, primarily due to its inability to generate revenue. The company's financial health is concerning, with increasing net losses and negative cash flows. The balance sheet offers some relief with low debt levels, but declining equity and negative operating cash flows pose substantial risks. The company needs to focus on revenue generation and cash flow management to improve its financial standing.
Income Statement
15
Very Negative
Biomea Fusion has struggled with consistent revenue generation, as evidenced by zero revenue across the years. The company's net losses have increased significantly, with the most recent annual report showing a net income of -$138 million. The absence of revenue highlights a critical challenge for the company, affecting profitability margins such as gross profit, EBIT, and EBITDA, all of which are negative.
Balance Sheet
40
Negative
The balance sheet indicates a relatively low debt-to-equity ratio, thanks to a modest amount of total debt compared to equity. However, the significant decline in equity from $169 million in 2023 to $51 million in 2024 raises concerns. High cash reserves compared to total debt suggest good liquidity, yet with shrinking equity, the financial stability is weakening.
Cash Flow
25
Negative
Operating cash flows have been deeply negative, with no signs of improvement. The free cash flow remains negative, but the drop in operating cash flow in 2024 to zero indicates a potential cash crunch. The inability to generate positive cash flow from operations is a key risk for the company's financial health.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit0.00-4.20M-1.26M-953.00K-132.00K
EBITDA-136.68M-124.62M-82.94M-41.42M-5.32M
Net Income-138.43M-117.25M-80.02M-41.22M-5.32M
Balance Sheet
Total Assets79.94M199.93M129.31M185.71M62.53M
Cash, Cash Equivalents and Short-Term Investments58.28M176.87M113.40M175.74M61.70M
Total Debt8.77M10.30M2.29M2.85M259.00K
Total Liabilities28.36M30.69M20.77M6.92M57.36M
Stockholders Equity51.57M169.24M108.54M178.78M5.17M
Cash Flow
Free Cash Flow-120.26M-99.96M-63.45M-38.61M-4.51M
Operating Cash Flow-119.89M-96.59M-62.42M-35.44M-4.46M
Investing Cash Flow-362.00K-2.22M27.34M-33.35M-51.00K
Financing Cash Flow1.67M163.80M1.24M153.19M65.97M

Biomea Fusion Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.80
Price Trends
50DMA
1.91
Negative
100DMA
2.04
Negative
200DMA
4.09
Negative
Market Momentum
MACD
-0.04
Negative
RSI
45.99
Neutral
STOCH
31.65
Neutral
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 1.8 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 1.91, and below the 200-day MA of 4.09, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BMEA.

Biomea Fusion Risk Analysis

Biomea Fusion disclosed 91 risk factors in its most recent earnings report. Biomea Fusion reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Biomea Fusion Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
€1.88B27.4510.52%2.25%7.24%101.56%
44
Neutral
$94.17M-122.69%20.91%
38
Underperform
$141.42M-80.65%-24.18%
36
Underperform
$88.44M-55.68%-57.45%
35
Underperform
$102.64M-156.81%-10.99%
28
Underperform
$62.18M-2355.27%-100.00%52.65%
$69.14M-54.30%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BMEA
Biomea Fusion
1.80
-3.52
-66.17%
UNCY
Unicycive Therapeutics
4.71
0.51
12.14%
ABOS
Acumen Pharmaceuticals
1.46
-1.96
-57.31%
IVVD
Invivyd
0.84
-0.35
-29.41%
GNTA
Genenta Science SpA Sponsored ADR
3.78
-0.48
-11.27%
LXEO
Lexeo Therapeutics, Inc.
4.26
-8.46
-66.51%

Biomea Fusion Corporate Events

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
Biomea Fusion Appoints Interim CEO Amid Leadership Changes
Neutral
Mar 27, 2025

On March 25, 2025, Biomea Fusion announced leadership changes with Dr. Michael J.M. Hitchcock appointed as interim CEO following Thomas Butler’s resignation. This transition is part of Biomea’s strategic efforts to advance its diabetes treatment pipeline, particularly after positive Phase II clinical results for icovamenib. The company is currently non-compliant with Nasdaq’s audit committee requirements due to a vacancy but plans to address this within the given cure period.

Executive/Board Changes
Biomea Fusion CFO Franco Valle Resigns
Neutral
Feb 28, 2025

On February 24, 2025, Biomea Fusion announced the resignation of Franco Valle as Chief Financial Officer, effective March 7, 2025. The company clarified that Valle’s departure was amicable and unrelated to any financial or accounting issues, ensuring stakeholders of the company’s stable operational practices.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 22, 2025