Heidelberg Pharma AG (HPHA) AI Stock Analysis

• Market Cap: €131.93M
• Dividend Yield: N/A
• Average Volume (3M): 8.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• 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: 42 Neutral
• Price Target: €2.50 ▲(4.17% Upside)

Overall score is driven primarily by weak financial performance (declining revenue, persistent losses, and sustained cash burn) and bearish technicals (price below key moving averages with negative MACD). Valuation does not provide support due to continued losses (negative P/E) and no indicated dividend yield.

Positive Factors

Proprietary Technology Platform

Heidelberg Pharma's focus on antibody-drug conjugates (ADCs) provides a competitive edge in targeted cancer therapies, potentially leading to innovative treatments and partnerships.

Strategic Partnerships

Strategic partnerships with larger pharmaceutical companies can provide funding and resources, enhancing HPHA's development capabilities and market reach.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to focus on R&D and strategic growth without the burden of high debt.

Negative Factors

Declining Revenue

A significant revenue decline indicates challenges in scaling operations or market penetration, which could impact long-term growth and sustainability.

Persistent Losses

Ongoing losses and negative margins suggest difficulty in achieving profitability, potentially requiring continuous external funding and impacting investor confidence.

Heavy Cash Burn

Sustained negative cash flow indicates reliance on external financing to fund operations, posing a risk to financial stability if funding sources diminish.

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

Weak fundamentals: revenue fell ~27% TTM, the company is deeply loss-making with large operating losses, and cash burn remains heavy (TTM OCF/FCF ~-32M). Low leverage (debt-to-equity ~0.01) is a positive, but equity has dropped sharply versus prior years, underscoring ongoing financing and execution risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined sharply (down ~27%), and the company remains deeply loss-making with very negative operating and net margins. Gross margin is still solid in TTM (~70%), but operating losses are large relative to the revenue base, suggesting limited scale and ongoing heavy R&D/operating spend. Losses have persisted across multiple years, with no clear path to profitability evident in the provided trend.

Balance Sheet

Leverage looks very low in TTM (debt-to-equity ~0.01), which reduces financial risk and provides flexibility. However, equity has fallen materially versus prior years (from ~66.6M in 2022 to ~10.5M in TTM), consistent with ongoing losses and potential dilution/valuation impacts. Returns on equity remain strongly negative, indicating that the balance sheet is being eroded by continued net losses despite currently modest debt.

Cash Flow

Cash burn remains heavy: TTM operating and free cash flow are both around -32M, broadly similar to the prior year’s burn rate. Free cash flow is negative across all periods shown, signaling ongoing reliance on financing to fund operations. A relative positive is that free cash flow roughly tracks net loss (cash burn not dramatically worse than accounting losses), but the absolute level of negative cash generation remains a key risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04M	6.85M	9.86M	18.51M	1.75M	8.49M
Gross Profit	2.13M	4.20M	6.61M	13.83M	-2.96M	2.89M
EBITDA	-26.95M	-18.37M	-18.71M	-16.19M	-24.83M	-17.55M
Net Income	-26.18M	-19.38M	-20.35M	-19.70M	-26.63M	-18.37M
Balance Sheet
Total Assets	54.05M	60.72M	70.35M	100.58M	21.73M	19.61M
Cash, Cash Equivalents and Short-Term Investments	22.87M	29.42M	43.44M	81.33M	6.14M	4.98M
Total Debt	130.90K	21.97M	5.83M	15.98M	10.63M	202.68K
Total Liabilities	43.52M	29.85M	21.01M	33.94M	15.03M	6.73M
Stockholders Equity	10.53M	30.87M	49.34M	66.64M	6.70M	12.88M
Cash Flow
Free Cash Flow	-31.97M	-30.04M	-34.63M	-9.48M	-28.00M	-19.33M
Operating Cash Flow	-31.66M	-29.59M	-33.67M	-8.86M	-26.61M	-17.89M
Investing Cash Flow	-362.25K	-449.13K	5.85M	-597.57K	-1.40M	-1.29M
Financing Cash Flow	18.40M	16.08M	-10.05M	84.00M	29.17M	14.29M

Heidelberg Pharma AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 2.4 is below the 20-day moving average (MA) of 3.02, below the 50-day MA of 2.85, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 4.88 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	€408.09M	18.33	4.18%	―	9.27%	65.65%
FYB	63 Neutral	€406.48M	-2.39	-34.48%	―	-14.84%	-338.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.35B	-59.12	―	―	-18.82%	-113.85%
BNN	43 Neutral	€50.69M	-4.32	-111.86%	―	-4.90%	-69.80%
HPHA	42 Neutral	€131.93M	-5.03	-112.95%	―	-64.15%	-39.31%