Biomea Fusion (BMEA) AI Stock Analysis

• Market Cap: $102.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: N/A
• EPS Growth: -10.99%
• Country: US
• Employees: 79
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -0.81
• Shares Outstanding: 57,022,250
• 10 Day Avg. Volume: 741,357
• 30 Day Avg. Volume: 1,718,762
• PEG Ratio: -0.09
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.90
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 5.00
• Enterprise Value/Gross Profit: 175.15
• Enterprise Value/Ebitda: -0.13
• 1Y Price Target: $10.50
• Price Target Upside: 483.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 35 Underperform
• 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 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 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

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

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

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.

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	-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 Assets	79.94M	199.93M	129.31M	185.71M	62.53M
Cash, Cash Equivalents and Short-Term Investments	58.28M	176.87M	113.40M	175.74M	61.70M
Total Debt	8.77M	10.30M	2.29M	2.85M	259.00K
Total Liabilities	28.36M	30.69M	20.77M	6.92M	57.36M
Stockholders Equity	51.57M	169.24M	108.54M	178.78M	5.17M
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	-2.22M	27.34M	-33.35M	-51.00K
Financing Cash Flow	1.67M	163.80M	1.24M	153.19M	65.97M

Biomea Fusion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	€1.88B	27.45	10.52%	2.25%	7.24%	101.56%
IVVD	44 Neutral	$94.17M	―	-122.69%	―	―	20.91%
LXEO	38 Underperform	$141.42M	―	-80.65%	―	―	-24.18%
ABOS	36 Underperform	$88.44M	―	-55.68%	―	―	-57.45%
BMEA	35 Underperform	$102.64M	―	-156.81%	―	―	-10.99%
UNCY	28 Underperform	$62.18M	―	-2355.27%	―	-100.00%	52.65%
GNTA	―	$69.14M	―	-54.30%	―	―	―

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.