Connect Biopharma Holdings (CNTB) AI Stock Analysis

• Market Cap: $32.66M
• Dividend Yield: N/A
• Average Volume (3M): 60.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 81
• Sector: Healthcare
• Sector Strength: 76
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 55,349,210
• 10 Day Avg. Volume: 145,459
• 30 Day Avg. Volume: 60,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• 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: $8.00
• Price Target Upside: 1169.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Connect Biopharma Holdings has a low overall stock score due to financial challenges, negative technical indicators, and speculative valuation. However, future prospects could improve with successful Phase 2 trials, backed by recent FDA support. The company's financial and technical weaknesses are offset by promising clinical developments.

Positive Factors

Clinical Trials

Company has updated its timing for initial data from both trials to 1H26, from 2H26 previously reported, which is a positive update given the creation of a meaningful catalyst within ~12 months.

Market Competition

Connect Biopharma is planning a Phase 2 trial for rademikibart to treat acute exacerbations due to asthma or COPD, which is a market with no existing competition from approved drugs like Dupixent.

Operational Efficiency

The company's restructuring to focus on the US market, including relocating its headquarters to San Diego, is aimed at enhancing its market presence and operational efficiency.

Regulatory Approval

FDA acknowledged the unmet need for reducing recurrent exacerbations following an acute exacerbation of asthma or COPD which occurs in up to 50% of cases.

Negative Factors

Clinical Risks

Risks include safety signals emerge with any of the company’s clinical or preclinical programs, efficacy from clinical programs is lower than expected, or the company’s studies do not achieve statistical significance.

Financing

Financing requirements for the business assume cash runway into 2027 and approximately $150M additional financing needed through 2038.

Connect Biopharma Holdings Business Overview & Revenue Model

Company Description

Connect Biopharma Holdings (CNTB) is a clinical-stage biopharmaceutical company that focuses on developing therapies for the treatment of T cell-driven inflammatory diseases. Specializing in allergy, autoimmune, and other inflammatory conditions, the company leverages its expertise in T cell biology and immune modulation to create innovative, targeted therapies. With headquarters in China, Connect Biopharma is committed to addressing unmet medical needs and improving patient outcomes through its robust pipeline of investigational drugs.

How the Company Makes Money

Connect Biopharma Holdings makes money through the development and commercialization of its proprietary drugs targeted at T cell-driven inflammatory diseases. The company's revenue model primarily involves out-licensing its drug candidates to larger pharmaceutical companies, which may provide upfront payments, milestone payments, and royalties on future sales. Additionally, Connect Biopharma may engage in strategic collaborations with other biopharmaceutical companies to co-develop and co-market its products, thereby sharing the risks and rewards of drug development. However, as a clinical-stage company, significant revenue generation depends on successfully navigating the regulatory approval process and bringing its therapies to market.

Connect Biopharma Holdings Financial Statement Overview

Summary

Connect Biopharma Holdings faces significant financial challenges, with zero revenue, persistent losses, and negative cash flow indicating a precarious financial position. Despite low debt levels, negative equity suggests solvency issues.

Income Statement

Connect Biopharma Holdings has consistently reported zero revenue over the years, indicating a lack of commercialized products or services. The company exhibits negative EBIT and net income, reflecting ongoing operational losses. The absence of revenue growth and persistent losses suggest financial instability in the income statement.

Balance Sheet

The balance sheet shows a relatively low debt level, leading to a low debt-to-equity ratio, which is positive. However, the company has a history of negative stockholders' equity, indicating potential solvency issues. The equity ratio is also weak, suggesting reliance on liabilities for asset financing.

Cash Flow

The cash flow statements reveal a negative free cash flow, pointing to cash burn without sufficient inflows. The operating cash flow is consistently negative, showing that core operations are not generating cash, raising concerns about sustainability without external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
24.12M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
23.63M	-988.00K	-1.03M	0.00	0.00	0.00
	EBIT
-19.92M	-62.07M	-117.66M	-99.15M	-30.30M	-15.99M
	EBITDA
-20.18M	-58.37M	-111.31M	-204.93M	-118.21M	-24.78M
	Net Income Common Stockholders
-21.27M	-59.50M	-116.42M	-205.21M	-120.30M	-24.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.27M	118.65M	164.65M	268.02M	156.74M	49.27M
	Total Assets
54.05M	125.89M	177.01M	291.39M	166.19M	54.05M
	Total Debt
127.96K	465.00K	437.88K	124.52K	139.86K	127.96K
	Net Debt
-44.70M	-105.54M	-79.93M	-267.90M	-154.59M	-44.70M
	Total Liabilities
97.33M	24.85M	16.81M	18.82M	323.20M	97.33M
	Stockholders Equity
-43.27M	101.04M	-463.76M	272.57M	-157.01M	-43.27M
Cash Flow		Free Cash Flow
-25.26M	-48.22M	-103.55M	-93.03M	-27.95M	-13.25M
	Operating Cash Flow
-24.82M	-47.93M	-99.27M	-85.57M	-25.61M	-13.09M
	Investing Cash Flow
53.18M	75.16M	-83.44M	―	449.15K	―
	Financing Cash Flow
-161.72K	-246.00K	―	206.66M	140.74M	―

Connect Biopharma Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTB, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.85, and below the 200-day MA of 1.10, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 25.97 is Positive, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTB.

Connect Biopharma Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.35B	1.09	-48.69%	2.63%	17.17%	1.01%
CNTB	48 Neutral	$32.66M	―	-58.89%	―	―	―
ADAP	46 Neutral	$82.90M	―	-273.36%	―	194.23%	45.50%
CRSP	46 Neutral	$2.80B	―	-19.20%	―	-89.95%	-123.71%
FATE	42 Neutral	$77.93M	―	-54.21%	―	-78.55%	-0.92%
ALLO	41 Neutral	$312.86M	―	-55.13%	―	-86.25%	36.10%
NTLA	41 Neutral	$713.24M	―	-54.00%	―	59.55%	3.09%

Connect Biopharma Holdings Corporate Events

Connect Biopharma Gains FDA Support for Phase 2 Trials

On April 1, 2025, Connect Biopharma announced positive feedback from its Type C meeting with the FDA, which has aligned on the company’s plan to initiate parallel Phase 2 trials of rademikibart for patients with moderate-to-severe asthma or COPD experiencing acute exacerbations. These trials, set to begin in the second quarter of 2025, aim to enroll approximately 160 patients each and will evaluate the efficacy of a single 600 mg subcutaneous dose of rademikibart over 28 days. The company expects to report data from these trials in the first half of 2026, potentially impacting the treatment landscape for asthma and COPD by addressing a significant unmet need.