Biomea Fusion (BMEA) AI Stock Analysis

• Market Cap: $65.75M
• Dividend Yield: N/A
• Average Volume (3M): 743.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: N/A
• EPS Growth: -10.99%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.81
• Shares Outstanding: 37,572,250
• 10 Day Avg. Volume: 853,677
• 30 Day Avg. Volume: 743,966
• 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: 1.39
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -21.71
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.75
• Price Target Upside: 922.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

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.

Efficacy and Safety

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

Synergistic Potential

Initial preclinical data shows icovamenib synergizes with GLP-1 RAs for glucose control, indicating potential benefits in diabetes treatment.

Negative Factors

Cash Reserves

The company ended the year with $58.6 million in cash.

Oncology Trials Termination

Biomea is terminating all ongoing oncology trials for the menin inhibitor candidate.

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

Biomea Fusion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.03 is above the 20-day moving average (MA) of 1.92, below the 50-day MA of 2.38, and below the 200-day MA of 5.63, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 62.13 is Neutral, 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
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
IVVD	44 Neutral	$75.60M	―	-138.71%	―	―	20.91%
LXEO	38 Underperform	$156.36M	―	-85.37%	―	―	-24.18%
ABOS	36 Underperform	$68.45M	―	-45.60%	―	―	-57.45%
BMEA	35 Underperform	$65.75M	―	-125.38%	―	―	-10.99%
UNCY	28 Underperform	$78.00M	―	-2355.27%	―	-100.00%	52.65%

Biomea Fusion Corporate Events

Biomea Fusion Appoints Interim CEO Amid Leadership Changes

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.

Biomea Fusion CFO Franco Valle Resigns

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.