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Capricor Therapeutics (CAPR)
NASDAQ:CAPR
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Capricor Therapeutics (CAPR) AI Stock Analysis

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CAPR

Capricor Therapeutics

(NASDAQ:CAPR)

Rating:43Neutral
Price Target:
$6.50
▼(-3.56% Downside)
Capricor Therapeutics faces significant financial and regulatory challenges, with ongoing losses and a negative outlook from the FDA's CRL. The strong cash position and potential in the exosome program are positives, but the bearish technical indicators and unattractive valuation weigh heavily on the overall score.
Positive Factors
Financial Outlook
Capricor ended the quarter financially strong with $122.8 million, providing runway into late 2026 as it navigates the FDA regarding deramiocel's filing.
Regulatory and Manufacturing Clarity
Capricor has outlined a clear path to launch, backed by increasing regulatory and manufacturing clarity, strengthening confidence in deramiocel’s potential approval and commercial readiness.
Therapeutic Durability
Deramiocel offers a first-in-class therapeutic profile with strong clinical and manufacturing support.
Negative Factors
FDA Decision Uncertainty
The FDA continues to evolve under its new leadership, and with it there is likely to be continued volatility.
Regulatory Challenges
The FDA issued a Complete Response Letter (CRL) for deramiocel's Biologics License Application (BLA), which came as a surprise despite detailed conversations with the FDA and completed answers to questions.
Resubmission Risks
The company's desire to resubmit the BLA mostly unchanged poses a risk, despite having answered all FDA questions.

Capricor Therapeutics (CAPR) vs. SPDR S&P 500 ETF (SPY)

Capricor Therapeutics Business Overview & Revenue Model

Company DescriptionCapricor Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development of transformative cell and exosome-based therapeutics for the treatment and prevention of spectrum of diseases and disorders. Its lead candidate, CAP-1002, an allogeneic cardiac-derived cell therapy, which has completed phase III clinical trial for the treatment of patients with late-stage Duchenne muscular dystrophy (DMD); and CAP-1002, which is in Phase II clinical trial for the treatment of cytokine storm associated with SARS-CoV-2. The company also develops CAP-2003 that is in pre-clinical development for the treatment of trauma related injuries and conditions; and two vaccine candidates, which are in development stage for the potential prevention of COVID-19. It collaborates with Lonza Houston, Inc. for the clinical manufacturing of CAP-1002, its cell therapy candidate for the treatment of DMD and other indications. The company was founded in 2005 and is headquartered in San Diego, California.
How the Company Makes MoneyCapricor Therapeutics generates revenue primarily through the development and commercialization of its therapeutic products. The company may engage in various revenue streams, including licensing agreements, collaborations with pharmaceutical companies, and government grants for research and development. Significant partnerships with larger biotech or pharmaceutical firms may provide upfront payments, milestone payments, and royalties on future sales, contributing to Capricor's earnings. Additionally, funding from grants or public offerings may support its operational costs and research initiatives.

Capricor Therapeutics Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Negative
The earnings call highlighted Capricor Therapeutics' strong cash position and progress in its exosome program but faced significant challenges with the FDA's complete response letter, increased expenses, and zero revenue, resulting in a net loss. The regulatory delays and lack of clarity on the approval path for Deramiocel contributed to a negative outlook.
Q2-2025 Updates
Positive Updates
Strong Cash Position
Capricor Therapeutics reported a strong cash position with over $120 million in cash, sufficient to support operations into late 2026.
Progress in Exosome Program
Capricor's exosome program, particularly the StealthX vaccine, reached a significant milestone with the clearance of the IND and initiation of the Phase I trial, indicating potential for future business development opportunities.
Manufacturing and CMC Readiness
The FDA accepted all 483 items from Capricor's Pre-License Inspection, validating the company's manufacturing capabilities and commercial readiness.
Negative Updates
Complete Response Letter from FDA
Capricor received a CRL from the FDA for its Biologics License Application for Deramiocel, indicating that the application did not meet the statutory requirements for substantial evidence of effectiveness.
Increased Operating Expenses
Research and development expenses increased significantly to approximately $20.1 million in Q2 2025 from $11.7 million in Q2 2024, impacting the financial performance.
Zero Revenue Reported
The company reported zero revenues for the second quarter and first half of 2025, compared to $4 million and $8.9 million in the respective periods of 2024.
Net Loss Increase
Capricor reported a net loss of approximately $25.9 million for Q2 2025, compared to a net loss of $11 million in Q2 2024.
Regulatory Delays
The FDA's unexpected cancellation of the advisory committee meeting and the lack of clarity on the path forward for Deramiocel has caused delays and uncertainty.
Company Guidance
During the Capricor Therapeutics Second Quarter 2025 Conference Call, significant guidance was provided regarding the company's plans and recent challenges. The call highlighted an unexpected complete response letter (CRL) from the FDA concerning Capricor's Biologics License Application (BLA) for Deramiocel, intended for treating cardiomyopathy in Duchenne muscular dystrophy (DMD) patients. The CRL indicated that the BLA did not meet statutory requirements for substantial evidence of effectiveness, prompting a focus on resolving these issues with the FDA. Despite this setback, Capricor remains steadfast in its commitment to advancing Deramiocel, with the company emphasizing its continued belief in the strength of its submission and the promising data from its HOPE-2 and HOPE-3 trials. The company has scheduled a Type A meeting with the FDA to clarify the path forward, aiming to align on the primary efficacy endpoint for the HOPE-3 trial, which has been amended to focus on left ventricular ejection fraction (LVEF). Financially, Capricor reported a net loss of approximately $25.9 million for Q2 2025, with cash and equivalents totaling around $122.8 million, ensuring operational support into late 2026. The strategic focus remains on securing U.S. approval for Deramiocel, with global expansion plans to be disclosed as they develop.

Capricor Therapeutics Financial Statement Overview

Summary
Capricor Therapeutics shows significant revenue volatility and operates at a net loss, with negative profit margins. Despite a strong equity position, the company struggles with profitability and cash flow generation, typical of the biotechnology industry.
Income Statement
30
Negative
Capricor Therapeutics has shown significant revenue volatility over the years, with a notable increase in revenue in 2023 compared to previous years, but still operates at a net loss. The gross profit margin is consistently negative, and the EBIT and EBITDA margins are also negative, indicating the company is struggling with profitability. Revenue growth is present but overshadowed by operational inefficiencies and high expenses.
Balance Sheet
65
Positive
The company has a strong equity position with a positive stockholders' equity, and the absence of total debt in the latest year indicates reduced leverage risk. However, the negative total liabilities figure in 2024 raises concerns about data accuracy or financial reporting issues. The equity ratio is favorable given the high equity levels in relation to assets.
Cash Flow
40
Negative
Capricor Therapeutics has experienced fluctuating cash flow from operations, with periods of negative free cash flow, indicating challenges in generating sustainable cash from operations. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is not calculable, highlighting ongoing cash management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.39M22.27M25.18M2.55M244.90K310.25K
Gross Profit12.25M20.84M24.11M1.86M-798.00310.25K
EBITDA-70.47M-41.14M-23.01M-29.16M-20.69M-13.55M
Net Income-69.98M-40.47M-22.29M-29.02M-20.02M-13.66M
Balance Sheet
Total Assets133.57M170.48M58.73M50.09M41.33M34.62M
Cash, Cash Equivalents and Short-Term Investments122.80M151.52M39.49M41.42M34.89M32.67M
Total Debt4.42M1.45M2.24M2.56M2.87M318.16K
Total Liabilities28.59M25.02M36.13M38.31M9.96M6.42M
Stockholders Equity104.98M145.46M22.60M11.79M31.37M28.20M
Cash Flow
Free Cash Flow-34.81M-41.53M-27.64M1.56M-18.01M-10.60M
Operating Cash Flow-32.87M-40.00M-25.60M4.92M-16.81M-10.05M
Investing Cash Flow-97.49M-116.18M5.11M-35.07M-1.20M5.44M
Financing Cash Flow148.46M152.77M25.58M4.87M20.23M33.38M

Capricor Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.74
Price Trends
50DMA
7.85
Negative
100DMA
9.33
Negative
200DMA
11.68
Negative
Market Momentum
MACD
-0.49
Positive
RSI
45.28
Neutral
STOCH
33.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAPR, the sentiment is Negative. The current price of 6.74 is below the 20-day moving average (MA) of 7.14, below the 50-day MA of 7.85, and below the 200-day MA of 11.68, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 33.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAPR.

Capricor Therapeutics Risk Analysis

Capricor Therapeutics disclosed 75 risk factors in its most recent earnings report. Capricor 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 0 New Risks

Capricor Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$707.58M59.646.23%24.49%
66
Neutral
$631.57M49.633.33%85820.30%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
49
Neutral
$800.74M91.25%16.75%14.72%
43
Neutral
$271.56M-120.15%-50.68%-76.38%
41
Neutral
$647.03M-31.21%-5.63%
40
Neutral
$702.29M-59.11%39.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAPR
Capricor Therapeutics
6.74
2.54
60.48%
AKBA
Akebia Therapeutics
2.96
1.54
108.45%
TBPH
Theravance Biopharma
13.95
5.95
74.37%
MNMD
Mind Medicine
9.22
3.21
53.41%
KROS
Keros Therapeutics
15.59
-38.29
-71.07%
TYRA
Tyra Bioscience
12.65
-8.86
-41.19%

Capricor Therapeutics Corporate Events

Product-Related AnnouncementsRegulatory Filings and Compliance
Capricor Receives FDA CRL for Deramiocel BLA
Negative
Jul 11, 2025

On July 11, 2025, Capricor Therapeutics announced it received a Complete Response Letter (CRL) from the FDA regarding its Biologics License Application (BLA) for Deramiocel, a cell therapy for cardiomyopathy associated with Duchenne muscular dystrophy. The FDA cited the need for additional clinical data and outstanding items in the Chemistry, Manufacturing, and Controls section. Capricor plans to resubmit its BLA with data from the ongoing Phase 3 HOPE-3 trial in Q3 2025 and intends to engage with the FDA to discuss the path forward. The company remains committed to advancing Deramiocel through the approval process despite the unexpected FDA decision.

Shareholder MeetingsBusiness Operations and Strategy
Capricor Therapeutics Approves 2025 Equity Incentive Plan
Positive
May 27, 2025

Capricor Therapeutics, Inc. announced that its stockholders approved the 2025 Equity Incentive Plan during the 2025 Annual Meeting of Stockholders. This plan, previously approved by the Board of Directors, reserves 3,500,000 shares of common stock for equity-based awards to employees, non-employee directors, and consultants, with an automatic annual increase in shares authorized for issuance starting January 1, 2026, through January 1, 2035. This development is expected to enhance the company’s ability to attract and retain talent, thereby potentially impacting its operational capabilities and market positioning.

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: Aug 26, 2025