Heidelberg Pharma AG (HPHA) AI Stock Analysis

• Market Cap: €113.22M
• Dividend Yield: N/A
• Average Volume (3M): 8.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -64.15%
• EPS Growth: -39.31%
• Country: DE
• Employees: 105
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 46,784,317
• 10 Day Avg. Volume: 3,574
• 30 Day Avg. Volume: 8,494
• PEG Ratio: 1.27
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 16.33
• P/FCF Ratio: -3.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.53
• Revenue Forecast (FY): €7.24M

• Rating: 39 Underperform
• Price Target: €3.00 ▲(23.97% Upside)

Heidelberg Pharma AG's overall stock score is heavily impacted by its poor financial performance, with significant losses and liquidity concerns. Technical analysis indicates bearish momentum, and valuation metrics are unattractive. These factors combine to result in a low overall score.

Positive Factors

Innovative Technology

Heidelberg Pharma's ATAC technology offers a competitive edge by enabling targeted cancer therapies, potentially improving treatment efficacy and reducing side effects, which can drive long-term growth through successful drug development and partnerships.

Partnership Revenue Model

The partnership-based revenue model provides a diversified income stream through upfront and milestone payments, reducing financial risk and supporting sustainable growth as drug candidates progress through clinical trials.

Low Leverage

Low leverage enhances financial stability, providing flexibility to invest in R&D and withstand market volatility, which is crucial for a biotech firm focused on long-term drug development.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in commercializing products and sustaining operations, which could hinder future growth and investment in R&D if not addressed.

Negative Profitability

Persistent losses and negative profitability metrics suggest operational inefficiencies and financial strain, potentially limiting the company's ability to fund new projects and attract investment.

Cash Flow Challenges

Negative cash flow highlights liquidity issues, which may restrict the company's capacity to invest in growth opportunities and meet short-term obligations, impacting long-term sustainability.

Heidelberg Pharma AG Business Overview & Revenue Model

Company Description

Heidelberg Pharma AG, a biopharmaceutical company, focuses on oncology and antibody targeted amanitin conjugates (ATAC) in Germany, other European countries, the United States, and internationally. Its lead product candidate is HDP-101, which in the Phase I/IIa study for the treatment of relapsed or refractory multiple myeloma. It is developing HDP-102 for the treatment of non-Hodgkin lymphoma; HDP-103, an ATAC candidate to treat metastatic castration-resistant prostate cancer; HDP-104 for tumors; and HDP-XX for the treatment of solid/hematological tumors. The company is also developing MGTA-ATACs for HSCs, conditioning programs to treat blood cancers/genetic diseases; TAK-ATACs for oncology; and TLX250-CDx, a diagnostic antibody for imaging diagnostics of renal cancer in Phase III trials; urothelial carcinoma or bladder cancer in Phase I study; and triple-negative breast cancer in Phase II study. In addition, the company develops TLX250 (girentuximab), a therapeutic antibody, which is in Phase II study for patients with advanced clear cell renal cell carcinoma; RHB-107, an oral serine protease inhibitor that is in Phase II/III study to treat COVID-19, as well as for the treatment of advanced cholangiocarcinoma; and LH011 for pancreatic cancer. It has licensing agreement and strategic partnership with Huadong Medicine Co., Ltd. for the development and commercialization rights for HDP-101 and HDP-103 in Asia. The company was formerly known as Wilex AG and changed its name to Heidelberg Pharma AG in October 2017. Heidelberg Pharma AG was founded in 1997 and is based in Ladenburg, Germany.

How the Company Makes Money

Heidelberg Pharma AG generates revenue primarily through the development and commercialization of its proprietary ADC technology. The company monetizes its research and development efforts by entering into strategic partnerships and collaborations with larger pharmaceutical companies, which provide funding and resources in exchange for rights to co-develop or license its therapies. Additionally, HPHA may receive milestone payments and royalties from these partnerships, contributing to its overall earnings. The company also seeks to secure grants and funding opportunities from public institutions or private investors focused on advancing cancer therapies, which further supports its financial model.

Heidelberg Pharma AG Financial Statement Overview

Summary

Heidelberg Pharma AG faces significant financial challenges, with declining revenues and substantial losses. Negative profit margins and return on equity reflect poor profitability. Despite low leverage indicating some financial stability, negative cash flows highlight liquidity concerns.

Income Statement

Heidelberg Pharma AG's income statement reveals significant challenges. The company has experienced a sharp decline in revenue, with a TTM revenue growth rate of -38.95%. Profitability metrics are concerning, with negative net profit margins and EBIT margins indicating substantial losses. Despite a strong gross profit margin of 76.91%, the company's high operating expenses are eroding profitability.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.0066, indicating low leverage, which is a positive aspect. However, the return on equity is significantly negative at -84.55%, reflecting poor profitability and potential challenges in generating returns for shareholders. The equity ratio is not provided, but the low leverage suggests some stability in capital structure.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow, with a slight decrease in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is slightly better aligned with net income despite the losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.18M	6.85M	9.86M	18.51M	1.75M	8.49M
Gross Profit	3.22M	4.20M	6.61M	13.83M	-2.96M	2.89M
EBITDA	-22.43M	-18.37M	-18.71M	-16.19M	-24.83M	-17.55M
Net Income	-23.31M	-19.38M	-20.35M	-19.70M	-26.63M	-18.37M
Balance Sheet
Total Assets	62.45M	60.72M	70.35M	100.58M	21.73M	19.61M
Cash, Cash Equivalents and Short-Term Investments	33.25M	29.42M	43.44M	81.33M	6.14M	4.98M
Total Debt	37.67M	21.97M	5.83M	15.98M	10.63M	202.68K
Total Liabilities	43.94M	29.85M	21.01M	33.94M	15.03M	6.73M
Stockholders Equity	18.52M	30.87M	49.34M	66.64M	6.70M	12.88M
Cash Flow
Free Cash Flow	-27.21M	-30.04M	-34.63M	-9.48M	-28.00M	-19.33M
Operating Cash Flow	-26.78M	-29.59M	-33.67M	-8.86M	-26.61M	-17.89M
Investing Cash Flow	-445.00K	-449.13K	5.85M	-597.57K	-1.40M	-1.29M
Financing Cash Flow	17.96M	16.08M	-10.05M	84.00M	29.17M	14.29M

Heidelberg Pharma AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.42
• 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 DE:HPHA, the sentiment is Negative. The current price of 2.42 is below the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.93, and below the 200-day MA of 3.44, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 23.61 is Positive, neither overbought nor oversold. The STOCH value of 18.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HPHA.

Heidelberg Pharma AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILM1	70 Outperform	€345.35M	15.51	4.18%	―	9.27%	65.65%
FYB	63 Neutral	€418.85M	-2.47	-34.48%	―	-14.84%	-338.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.34B	-58.47	―	―	-18.82%	-113.85%
BNN	48 Neutral	€57.46M	-4.21	-111.86%	―	-4.90%	-69.80%
HPHA	39 Underperform	€113.22M	-4.31	-112.95%	―	-64.15%	-39.31%