Connect Biopharma Holdings (CNTB) AI Stock Analysis

• Market Cap: $114.49M
• Dividend Yield: N/A
• Average Volume (3M): 172.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 62
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.23
• Shares Outstanding: 55,721,657
• 10 Day Avg. Volume: 172,306
• 30 Day Avg. Volume: 172,858
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.14
• Enterprise Value/Revenue: -8.42
• Enterprise Value/Gross Profit: -9.29
• Enterprise Value/Ebitda: 0.46
• 1Y Price Target: $6.83
• Price Target Upside: 283.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• 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

Efficacy in Clinical Trials

Rademikibart has shown rapid onset of action in chronic asthma, with improvements in lung function observed within 24 hours.

Financial Opportunities

Connect Biopharma is eligible to receive milestone payments up to approximately $110M and royalties at tiered percentage rates up to low double-digit percentages on net sales in Greater China, which could provide financial flexibility to invest further in development without diluting shareholders.

Regulatory Advancements

Connect Biopharma's partner Simcere submitted an NDA for rademikibart in China for atopic dermatitis, indicating potential regulatory advancement and commercial opportunity.

Negative Factors

Financing Needs

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

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.

Safety and Efficacy 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96M	26.03M	0.00	0.00	0.00	0.00
Gross Profit	1.78M	26.03M	-988.00K	-1.03M	0.00	0.00
EBITDA	-36.12M	-21.79M	-58.37M	-111.31M	-204.93M	-118.21M
Net Income	-36.12M	-15.63M	-59.50M	-116.42M	-205.21M	-120.30M
Balance Sheet
Total Assets	82.72M	101.28M	125.89M	177.01M	291.39M	166.19M
Cash, Cash Equivalents and Short-Term Investments	71.77M	93.71M	118.65M	164.65M	268.02M	156.74M
Total Debt	870.00K	178.00K	465.00K	437.88K	124.52K	139.86K
Total Liabilities	11.38M	9.12M	24.85M	16.81M	18.82M	323.20M
Stockholders Equity	71.34M	92.17M	101.04M	-463.76M	272.57M	-157.01M
Cash Flow
Free Cash Flow	-28.78M	-24.36M	-48.22M	-103.55M	-93.03M	-27.95M
Operating Cash Flow	-28.17M	-23.61M	-47.93M	-99.27M	-85.57M	-25.61M
Investing Cash Flow	-10.59M	-3.45M	75.16M	-83.44M	―	449.15K
Financing Cash Flow	433.42K	227.00K	-246.00K	―	206.66M	140.74M

Connect Biopharma Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTB, the sentiment is Neutral. The current price of 1.78 is below the 20-day moving average (MA) of 1.95, above the 50-day MA of 1.76, and above the 200-day MA of 1.12, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 59.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNTB.

Connect Biopharma Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
CNTB	49 Neutral	$114.49M	―	-58.89%	―	―	―
DYAI	46 Neutral	$34.63M	―	-422.64%	―	129.20%	30.36%
XFOR	44 Neutral	$81.71M	0.66	-207.22%	―	5721.31%	-671.01%
PEPG	40 Underperform	$41.98M	―	-85.69%	―	―	10.04%
RVPH	28 Underperform	$30.38M	―	-916.17%	―	―	49.76%
CAMP	―	$31.45M	―		―	―	―

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.