Connect Biopharma Holdings (CNTB) AI Stock Analysis

• Market Cap: $130.26M
• Dividend Yield: N/A
• Average Volume (3M): 97.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 62
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 55,903,515
• 10 Day Avg. Volume: 111,495
• 30 Day Avg. Volume: 97,966
• PEG Ratio: 0.07
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.93
• P/FCF Ratio: -3.13
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 45.31
• Enterprise Value/Gross Profit: 49.99
• Enterprise Value/Ebitda: -2.46
• 1Y Price Target: $8.67
• Price Target Upside: 272.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $2.50 ▲(7.30% Upside)

The score is held back primarily by continued cash burn and lack of profitability despite improving revenue and narrower losses, partially offset by a low-debt balance sheet. Technicals are constructive with the stock trading above major moving averages and positive momentum indicators, while valuation support is limited due to negative earnings and no dividend yield.

Positive Factors

Conservative balance sheet / very low debt

Extremely low debt and positive equity materially reduce refinancing and solvency risk for a clinical-stage biotech. This conservative capital structure provides durable optionality to fund R&D, support partnerships, and bridge clinical milestones without immediate refinancing pressure.

Marked 2024 revenue inflection

A ~795% jump to ~$26M in 2024 represents a durable commercial or partnering inflection from prior minimal revenues. A larger revenue base supports scaling, reduces sole reliance on financing, and signals progressing monetization that can underpin reinvestment in development over the medium term.

Strategic transition to U.S.-based management and development

Shifting management and development focus to the U.S. and Europe is a structural change that improves access to regulators, investors, trial sites, and commercial partners. Over time this should strengthen strategic partnerships, capital access, and regulatory alignment for global development.

Negative Factors

Persistent negative cash generation

Operating cash outflows and negative free cash flow in 2024 show meaningful ongoing cash burn. Even with improvement versus prior year, continued negative cash generation forces reliance on external funding, raising execution risk and potential dilution if clinical timelines extend or costs rise.

Ongoing unprofitability and negative margins

A sizable net loss and deeply negative operating margins indicate the cost base still exceeds revenues. Without sustained margin improvement, the company cannot self-fund growth, limiting long-term sustainability and increasing dependence on capital markets for continued development.

Historical equity volatility and funding dependence

Past episodes of negative and volatile equity show recurring dependence on external capital cycles. Even with current positive equity, the company remains vulnerable to funding disruptions; future capital raises could dilute stakeholders and constrain strategic flexibility if cash burn persists.

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

Strong 2024 revenue inflection (~+795% to ~$26M) and a much smaller net loss vs. 2023, but profitability remains weak and the company is still meaningfully cash-flow negative (operating cash flow ~-$23.6M; FCF ~-$24.4M). Balance sheet strength (very low debt and positive equity) helps offset, but cash burn remains the primary risk.

Income Statement

Revenue inflected meaningfully in 2024 (up ~795% to ~$26.0M after minimal revenue in prior years), showing improving commercialization/partnering traction. However, profitability remains weak: 2024 net loss was ~$15.6M with deeply negative operating margins, indicating the cost base still outweighs current revenue. The bright spot is a much smaller loss versus 2023 (net loss improved from ~$59.5M), but the business is still not near sustainable profitability.

Balance Sheet

The balance sheet is conservatively levered with very low debt (2024 total debt ~$0.18M) and a minimal debt-to-equity ratio, which reduces refinancing and solvency risk. Stockholders’ equity is positive in 2024 (~$92.2M), providing a cushion to fund operations. The key weakness is ongoing losses translating into negative return on equity in 2024, and equity has been volatile historically (including negative equity in some earlier years), which underscores dependence on continued funding discipline.

Cash Flow

Cash generation remains the primary pressure point: 2024 operating cash flow was negative (~-$23.6M) and free cash flow was also negative (~-$24.4M), implying continued cash burn to support R&D and operations. Cash burn improved materially versus 2023 (operating cash outflow reduced from ~-$47.9M), but free cash flow still declined modestly year over year. Free cash flow was roughly in line with the net loss, suggesting losses are largely cash-based rather than accounting-driven.

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	-117.03M	-201.72M	-112.25M
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	-5.34M	449.15K
Financing Cash Flow	433.42K	227.00K	-246.00K	-91.28K	206.66M	140.74M

Connect Biopharma Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.33 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.49, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 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
CNTB	53 Neutral	$130.26M	-8.13	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SCNI	49 Neutral	$777.93K	-0.07	―	―	178.82%	-4121.10%
DRMA	47 Neutral	$6.85M	-0.09	-203.36%	―	―	90.53%
REVB	45 Neutral	$2.52M	-0.01	-118.88%	―	―	96.26%
GTBP	40 Underperform	$14.04M	-0.15	-356.99%	―	―	54.62%

Connect Biopharma Holdings Corporate Events

Connect Biopharma announces board resignation amid U.S. transition

On December 17, 2025, Connect Biopharma Holdings announced that Kan Chen, Ph.D., a partner at Qiming Venture Partners, resigned from its board of directors and from the nominating and corporate governance committee, effective immediately. The company said Chen’s departure was not due to any disagreement over operations, policies or practices, and noted that he viewed the timing as appropriate following the company’s successful strategic transition to a U.S.-based management team and drug development activities primarily in the U.S. and Europe, which he believes has positioned the company for future growth.

The most recent analyst rating on (CNTB) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Connect Biopharma Holdings stock, see the CNTB Stock Forecast page.