Edesa Biotech (EDSA) AI Stock Analysis

• Market Cap: $15.91M
• Dividend Yield: N/A
• Average Volume (3M): 29.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: 22.63%
• Country: US
• Employees: 16
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 7,037,648
• 10 Day Avg. Volume: 18,281
• 30 Day Avg. Volume: 29,542
• 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: 0.70
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -216.22
• Enterprise Value/Ebitda: -1.93
• 1Y Price Target: $7.00
• Price Target Upside: 209.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 35 Underperform
• Price Target: ―

Edesa Biotech exhibits significant financial challenges, reflected in zero revenue and persistent losses, severely impacting its overall score. Technical indicators show a stable market position, but poor valuation metrics further weigh down the stock's attractiveness. The lack of revenue and cash flow sustainability poses significant risks.

Positive Factors

Drug Development

Health Canada has approved Edesa Biotech to conduct a Phase 2 trial of EB06 in moderate to severe nonsegmental vitiligo patients.

Financial Position

Edesa’s balance sheet is robustly positioned for the manufacturing of clinical-grade supplies of EB06, supported by $15M in gross proceeds from a recent private placement.

Market Potential

The prioritization of EB06, a monoclonal antibody candidate for the treatment of vitiligo, represents a significant market opportunity due to the large number of affected individuals in the U.S.

Negative Factors

Market Competition

EB06 has potential advantages in safety and dosing, which could drive significant market adoption despite the presence of several competitors in the vitiligo market.

Edesa Biotech Business Overview & Revenue Model

Company Description

Edesa Biotech, Inc., a biopharmaceutical company, engages in acquiring, developing, and commercializing clinical-stage drugs for inflammatory and immune-related diseases with clear unmet medical needs. Its lead product candidates are EB05, a monoclonal antibody, which is in Phase 3 clinical study for the treatment of acute respiratory distress syndrome in covid-19 patients; and EB01, a topical treatment that is in Phase 2B clinical study for chronic allergic contact dermatitis. It has a license agreement with NovImmune SA to develop monoclonal antibodies targeting TLR4 and CXCL10. Edesa Biotech, Inc. was founded in 2015 and is headquartered in Markham, Canada.

How the Company Makes Money

Edesa Biotech generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company earns money by securing funding through public offerings, partnerships, and collaborations with other pharmaceutical and biotechnology firms. These partnerships often involve licensing agreements, where Edesa may receive upfront payments, milestone payments, and royalties based on the commercial success of its products. Additionally, Edesa Biotech may engage in research grants and government funding initiatives as part of its revenue model, leveraging these resources to advance its clinical trials and drug development programs.

Edesa Biotech Financial Statement Overview

Summary

Edesa Biotech faces substantial financial challenges, with zero revenue and persistent losses. The balance sheet shows no significant debt, but the company is heavily reliant on financing activities due to negative cash flows and operating cash burn.

Income Statement

Edesa Biotech has consistently reported zero revenue, highlighting a concerning lack of sales growth. The company has maintained negative gross, EBIT, and EBITDA margins over the past years, emphasizing its ongoing struggle with profitability. Net income has also remained negative, suggesting persistent losses without signs of improvement.

Balance Sheet

The company's balance sheet shows a relatively stable equity position, with no significant debt reported in the recent TTM period. The equity ratio is moderate, indicating some reliance on equity financing. However, the lack of revenue generation poses risks to long-term solvency and financial health.

Cash Flow

Edesa Biotech's cash flow statements reveal negative operating cash flow and free cash flow, indicating ongoing cash burn. The company has been reliant on financing activities to supplement its cash needs. The lack of revenue and positive cash flows presents a significant challenge to sustaining operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	328.80K
Gross Profit	-51.41K	0.00	-183.47K	-118.19K	-118.79K	311.20K
EBITDA	-5.75M	-5.98M	-8.19M	-17.43M	-13.22M	-6.35M
Net Income	-5.84M	-6.17M	―	-17.55M	-13.34M	-6.36M
Balance Sheet
Total Assets	16.45M	3.81M	8.89M	11.58M	14.58M	10.76M
Cash, Cash Equivalents and Short-Term Investments	13.90M	1.04M	5.36M	7.09M	7.84M	7.21M
Total Debt	0.00	19.87K	94.49K	18.98K	99.32K	164.19K
Total Liabilities	914.70K	1.83M	1.84M	2.18M	1.53M	4.13M
Stockholders Equity	15.54M	1.98M	7.05M	9.39M	13.06M	6.63M
Cash Flow
Free Cash Flow	-5.67M	-4.89M	-6.64M	-12.28M	-13.67M	-5.02M
Operating Cash Flow	-5.67M	-4.89M	-6.64M	-12.28M	-13.66M	-4.99M
Investing Cash Flow	0.00	0.00	0.00	-5.66K	-6.15K	19.07K
Financing Cash Flow	16.70M	592.03K	4.83M	11.63M	14.17M	7.09M

Edesa Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.26
• 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 EDSA, the sentiment is Positive. The current price of 2.26 is below the 20-day moving average (MA) of 2.27, above the 50-day MA of 2.13, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 55.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDSA.

Edesa Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPCN	51 Neutral	$16.47M	650.59	-23.51%	―	-45.78%	47.33%
Sector *	51 Neutral	$7.44B	-0.20	-46.00%	2.26%	22.80%	-2.27%
COCP	40 Underperform	$17.09M	―	-110.56%	―	―	5.69%
XTLB	39 Underperform	$12.76M	―	-26.83%	―	―	65.44%
EDSA	35 Underperform	$15.91M	―	-69.64%	―	―	22.63%
ERNA	―	$12.43M	―	-2264.31%	―	―	―
BIVI	38 Underperform	$12.42M	―	-93.23%	―	―	78.12%

Edesa Biotech Corporate Events

Edesa Biotech Appoints New CFO Amid Leadership Change

On April 3, 2025, Edesa Biotech announced the resignation of Stephen Lemieux as Chief Financial Officer, effective May 1, 2025, to pursue other opportunities. He will continue as a senior financial advisor on a consulting basis. Peter J. Weiler has been appointed as the new CFO, bringing extensive experience from his previous roles in the biotechnology and pharmaceutical sectors. This transition is expected to enhance Edesa’s strategic financial management as the company advances its drug development pipeline.