CervoMed (CRVO) AI Stock Analysis

• Market Cap: $86.85M
• Dividend Yield: N/A
• Average Volume (3M): 9.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 142.42%
• EPS Growth: 53.38%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.02
• Shares Outstanding: 8,702,719
• 10 Day Avg. Volume: 2,660,283
• 30 Day Avg. Volume: 9,372,264
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 12.77
• Price to Cash Flow (P/CF): -3.90
• 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: $15.83
• Price Target Upside: 40.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

CervoMed's stock score is primarily impacted by its financial challenges, with no revenue and persistent losses. However, technical indicators suggest positive momentum, and recent positive clinical trial results may improve future prospects. Valuation poses challenges due to negative earnings, but the potential for clinical success offers a speculative upside.

Positive Factors

Investor Confidence

CervoMed's latest data from the open label extension (OLE) study is boosting investor confidence, and a more risk-on approach is seen heading into the next steps for neflamapimod in dementia with Lewy bodies (DLB) patients.

Product Efficacy

Newly manufactured capsules of neflamapimod have meaningfully improved CDR-SB scores compared to old capsules in the initial 16 weeks, indicating significant cognitive benefits.

Negative Factors

Clinical Trial Results

The trial did not meet statistical significance thresholds for its primary endpoint of change in the Clinical Dementia Rating Sum of Boxes (CDR-SB) or any of its key secondary endpoints.

Market Uncertainty

Disappointing neflamapimod clinical data creates uncertainty—downgrading to Neutral without a price target.

CervoMed Business Overview & Revenue Model

Company Description

CervoMed Inc., a clinical-stage biotechnology company, engages in the development and commercialization of drug treatments for neurodegenerative diseases. It develops neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, and brain stroke recovery. The company is based in Boston, Massachusetts.

How the Company Makes Money

CervoMed generates revenue primarily through the development and commercialization of its therapeutic products. The company invests heavily in research and development to create proprietary drugs and treatments, which are then patented and brought to market. Revenue streams include product sales, licensing agreements, and potential collaborations with larger pharmaceutical companies. These partnerships can provide upfront payments, milestone payments, and royalties on sales, contributing significantly to CervoMed's earnings. Additionally, the company may receive funding from grants and research institutions to support its development pipeline.

CervoMed Financial Statement Overview

Summary

CervoMed faces significant challenges in terms of revenue generation and profitability with consistent operational losses. While the balance sheet shows improved leverage metrics, the absence of revenue growth and persistent cash flow issues highlight the financial instability. The company's reliance on financing activities for liquidity further indicates ongoing financial risks.

Income Statement

CervoMed has shown a lack of revenue generation in recent years, with no revenue recorded in the latest periods and a significant decrease from the previous year. The company's gross profit margin is nonexistent due to zero revenues, and the net income remains negative, indicating continued losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The company's balance sheet shows a positive equity position with a growing stockholders' equity, but this is overshadowed by historical high levels of debt and negative equity in prior years. The current debt position is improved with no total debt reported, leading to a lower leverage risk. However, persistent negative net income affects the return on equity.

Cash Flow

CervoMed has consistently negative operating cash flow, indicating cash outflows from regular operations. Despite the negative free cash flow over the years, the company has managed to maintain liquidity through significant financing activities. However, declining free cash flow growth poses a concern for future cash availability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	7.14M	0.00	0.00	0.00
	Gross Profit
0.00	-1.29M	-1.34M	-93.42K	-103.17K
	EBIT
-18.23M	-7.81M	-3.48M	-16.04M	-15.97M
	EBITDA
-18.23M	-2.17M	0.00	-24.45M	-15.76M
	Net Income Common Stockholders
-16.29M	-2.17M	-5.80M	-24.10M	-14.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.92M	7.79M	4.09M	37.31M	18.52M
	Total Assets
43.08M	9.97M	4.16M	37.84M	29.55M
	Total Debt
0.00	0.00	36.70M	10.03M	149.16K
	Net Debt
-9.00M	-7.79M	32.61M	-27.29M	-18.37M
	Total Liabilities
3.88M	2.60M	37.44M	2.93M	4.73M
	Stockholders Equity
39.20M	7.38M	-33.29M	34.91M	24.81M
Cash Flow		Free Cash Flow
-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
	Operating Cash Flow
-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
	Investing Cash Flow
-28.66M	0.00	-12.24M	4.00K	0.00
	Financing Cash Flow
46.40M	11.15M	0.00	33.30M	17.89M

CervoMed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.24
• 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 CRVO, the sentiment is Positive. The current price of 11.24 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 4.70, and above the 200-day MA of 10.25, indicating a bullish trend. The MACD of 1.74 indicates Positive momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 24.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRVO.

CervoMed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	76 Outperform	$2.69B	11.85	38.89%	―	31.85%	―
BIIB	65 Neutral	$19.13B	11.69	10.36%	―	-1.60%	39.71%
AVXL	62 Neutral	$706.03M	―	-37.72%	―	―	-3.08%
AXSM	51 Neutral	$5.26B	―	-231.63%	―	42.53%	-15.29%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
CRVO	46 Neutral	$86.85M	―	-69.95%	―	142.42%	53.38%
SAVA	42 Neutral	$66.66M	―	-17.19%	―	―	81.00%

CervoMed Corporate Events

CervoMed Shares Business and Financial Updates Online

CervoMed has made available information about its business, clinical studies, development plans, and financial position on its website under the ‘Investors – Events and Presentations’ section. The company may use this information in various investor-related activities, but it does not commit to updating it publicly unless legally required.

CervoMed Reports Positive Phase 2b Trial Results

On March 10, 2025, CervoMed Inc. announced positive results from the first 16 weeks of the extension phase of its Phase 2b RewinD-LB clinical trial for neflamapimod, aimed at treating dementia with Lewy bodies. The new batch of neflamapimod capsules showed improved plasma drug concentrations and significant improvements in clinical outcomes compared to old capsules and placebo, suggesting potential to alter the disease course. This development marks a significant step forward in the treatment of DLB, with the company planning to engage with regulatory authorities for Phase 3 trials.

CervoMed Updates on Neflamapimod Trials for Dementia

On January 31, 2025, CervoMed provided an update on its development of neflamapimod for dementia with Lewy bodies, presented at the 8th International Lewy Body Dementia Conference. The RewinD-LB Phase 2b trial showed no significant differences between the neflamapimod and placebo groups during the 16-week double-blind phase, possibly due to the age of the drug batch. The company anticipates efficacy endpoint data from the open-label extension phase using newer capsules, which showed better plasma drug concentrations. These results will guide the next steps in neflamapimod’s development.