Connect Biopharma Holdings (CNTB) AI Stock Analysis

• Market Cap: $54.24M
• Dividend Yield: N/A
• Average Volume (3M): 77.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 62
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 55,561,054
• 10 Day Avg. Volume: 85,082
• 30 Day Avg. Volume: 77,708
• PEG Ratio: <0.01
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.46
• Enterprise Value/Market Cap: -0.59
• Enterprise Value/Revenue: -0.64
• Enterprise Value/Gross Profit: -1.27
• Enterprise Value/Ebitda: 0.18
• 1Y Price Target: $6.50
• Price Target Upside: 501.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: ―

Connect Biopharma Holdings' overall score reflects the challenges of unprofitability and negative cash flow despite recent revenue growth and a strong balance sheet. Technical indicators suggest a bearish trend, while the valuation highlights the risks typical of early-stage biotech firms. However, the positive corporate event regarding FDA support for Phase 2 trials offers a promising growth opportunity in the pipeline, improving the outlook.

Positive Factors

Market Opportunity

CNTB's recent shift in strategy towards targeting asthma and COPD patients within the emergency department/hospital settings represents an attractive opportunity.

Regulatory Progress

CNTB announced positive feedback from its Type C meeting with the FDA and is on track to initiate parallel Phase 2 proof-of-concept trials for lead asset rademikibart.

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.

Financial Needs

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 Limited, a clinical-stage biopharmaceutical company, focuses on the discovery and development of immune modulators for the treatment of serious autoimmune diseases and inflammation. The company's lead product candidate is CBP-201, an anti-interleukin-4 receptor alpha antibody, which is in Phase IIb clinical trial for the treatment of inflammatory allergic diseases, such as atopic dermatitis, asthma, and chronic rhinosinusitis with nasal polyps. Its products also comprise CBP-307, a small molecule modulator of sphingosine 1-phosphate receptor 1, a regulator of T cell mobilization out of lymph nodes into the periphery that is in Phase II for the treatment of autoimmune-related inflammation diseases; CBP-174, a small molecule histamine receptor 3 antagonist for oral administration, which is in a preclinical stage to treat chronic itch associated with skin inflammation; and CBP-233, a preclinical stage humanized antibody against interleukin-33, a cytokine involved in T helper 2 inflammation. The company was founded in 2012 and is headquartered in Taicang, China.

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 shows early signs of growth with its first revenue generation, but it remains in a challenging financial position with persistent losses and negative cash flows. The balance sheet shows some strength with low leverage, but historical financial instability poses a risk.

Income Statement

Connect Biopharma Holdings' income statement shows a significant improvement in revenue from $0 to $26.03 million in the most recent year, marking the first occurrence of revenue generation. However, the company remains unprofitable with a negative net income and EBIT margin. The net profit margin is negative due to persistent losses, but the revenue growth is a positive sign of potential progress.

Balance Sheet

The balance sheet reflects a relatively healthy equity position with stockholders' equity at $92 million, indicating potential for stability. The debt-to-equity ratio is low, reflecting low leverage, which is a positive aspect. However, historical negative equity and high liabilities in previous years suggest potential financial risk.

Cash Flow

The cash flow statement indicates ongoing cash outflows with negative operating and free cash flows, although there is a slight improvement compared to prior years. The free cash flow to net income ratio is negative, indicating cash flow struggles, but reduced negative cash flow signals potential for future improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.03M	0.00	0.00	0.00	0.00
	Gross Profit
25.37M	-988.00K	-1.03M	0.00	0.00
	EBIT
-22.45M	-62.07M	-117.66M	-99.15M	-30.30M
	EBITDA
-22.45M	-58.37M	-111.31M	-204.93M	-118.21M
	Net Income Common Stockholders
-15.63M	-59.50M	-116.42M	-205.21M	-120.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.71M	118.65M	164.65M	268.02M	156.74M
	Total Assets
101.28M	125.89M	177.01M	291.39M	166.19M
	Total Debt
178.00K	465.00K	437.88K	124.52K	139.86K
	Net Debt
-78.05M	-105.54M	-79.93M	-267.90M	-154.59M
	Total Liabilities
9.12M	24.85M	16.81M	18.82M	323.20M
	Stockholders Equity
92.17M	101.04M	-463.76M	272.57M	-157.01M
Cash Flow		Free Cash Flow
-24.36M	-48.22M	-103.55M	-93.03M	-27.95M
	Operating Cash Flow
-23.61M	-47.93M	-99.27M	-85.57M	-25.61M
	Investing Cash Flow
-3.45M	75.16M	-83.44M	―	449.15K
	Financing Cash Flow
227.00K	-246.00K	―	206.66M	140.74M

Connect Biopharma Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTB, the sentiment is Positive. The current price of 1.08 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.78, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 77.37 is Negative, neither overbought nor oversold. The STOCH value of 96.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNTB.

Connect Biopharma Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
CNTB	49 Neutral	$54.24M	―	-58.89%	―	―	―
DYAI	46 Neutral	$27.98M	―	-214.26%	―	20.58%	15.90%
XFOR	44 Neutral	$15.80M	1.22	121.75%	―	―	―
PEPG	40 Underperform	$48.75M	―	-75.45%	―	―	14.06%
RVPH	28 Underperform	$35.66M	―	-916.17%	―	―	45.15%
CAMP		$29.23M	―		―	―	―

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.