Edesa Biotech (EDSA) AI Stock Analysis

• Market Cap: $12.33M
• Dividend Yield: N/A
• Average Volume (3M): 93.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: 30.29%
• Country: US
• Employees: 16
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 8,333,823
• 10 Day Avg. Volume: 65,583
• 30 Day Avg. Volume: 93,401
• PEG Ratio: 0.06
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.91
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -55.71
• Enterprise Value/Ebitda: -0.95
• 1Y Price Target: $5.00
• Price Target Upside: 237.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $1.50 ▲(1.35% Upside)

The score is held back primarily by weak financial performance (near-zero revenue, ongoing losses, and continued cash burn) and bearish technical trends (price below key moving averages with negative MACD). Offsetting these risks are a stronger balance-sheet profile with minimal debt and a major positive catalyst from the reported Phase 3 results, which lifts the outlook despite valuation being difficult to assess with negative earnings.

Positive Factors

Leadership Change

The appointment of a new CFO with extensive biotech experience is expected to enhance strategic financial management, potentially improving financial decision-making and supporting the advancement of Edesa's drug development pipeline.

Debt-Free Balance Sheet

A debt-free balance sheet provides Edesa Biotech with financial flexibility and reduces the risk of financial distress, allowing the company to focus resources on advancing its clinical-stage drug candidates.

Innovative Drug Pipeline

Edesa's focus on developing innovative treatments for unmet medical needs positions it well in the biotechnology sector, potentially leading to breakthrough therapies that can drive future revenue growth and market differentiation.

Negative Factors

Zero Revenue

The lack of revenue generation is a significant concern, as it indicates an inability to monetize its drug pipeline, which could impact long-term financial sustainability and necessitate continued reliance on external financing.

Negative Cash Flow

Persistent negative cash flow highlights operational inefficiencies and a reliance on external financing, which may limit Edesa's ability to invest in R&D and delay the commercialization of its drug candidates.

Persistent Losses

Ongoing losses and negative margins suggest operational challenges and an inability to achieve profitability, which could hinder Edesa's capacity to sustain its business and invest in future growth opportunities.

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

Operating fundamentals remain weak: revenue is effectively zero, losses persist, and operating/free cash flow are consistently negative with a higher burn in 2025. The balance sheet is a relative positive due to near-zero debt and a sharp equity increase in 2025, reducing near-term leverage risk, but the company remains funding-dependent.

Income Statement

The income statement remains very weak: revenue is effectively zero in recent annual periods (2021–2025), while losses persist each year (net loss of ~$7.2M in 2025 vs. ~$6.2M in 2024). Gross profit is negative in the most recent years, indicating ongoing costs without meaningful commercial revenue. A positive is that losses improved materially from 2021–2022 levels, but the company has not yet demonstrated a durable path to revenue generation or profitability.

Balance Sheet

The balance sheet is a relative strength because leverage is minimal (total debt near zero in 2025 and very low in prior years), which lowers financial risk. Equity is positive and increased sharply in 2025 (~$12.5M vs. ~$2.0M in 2024), suggesting a meaningful capital raise or balance sheet recapitalization. The key weakness is that returns on equity have been deeply negative historically due to ongoing losses, and the business remains dependent on funding to sustain operations.

Cash Flow

Cash flow is pressured by consistently negative operating cash flow and free cash flow (about -$7.3M in 2025 vs. -$4.9M in 2024), reflecting continued cash burn typical of development-stage biotech. While free cash flow improved versus the much heavier burn in 2021–2022, the 2025 step-up in cash outflow highlights volatility and continued reliance on external financing until revenue scales.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-119.27K	-119.27K	-186.05K	-183.47K	-118.19K	-118.79K
EBITDA	-7.03M	-7.07M	-5.98M	-8.19M	-17.43M	-13.22M
Net Income	-7.19M	-7.19M	-6.17M	―	-17.55M	-13.34M
Balance Sheet
Total Assets	13.66M	13.53M	3.81M	8.89M	11.58M	14.58M
Cash, Cash Equivalents and Short-Term Investments	10.79M	10.79M	1.04M	5.36M	7.09M	7.84M
Total Debt	0.00	0.00	19.87K	94.49K	18.98K	99.32K
Total Liabilities	1.21M	1.21M	1.83M	1.84M	2.18M	1.53M
Stockholders Equity	12.45M	12.45M	1.98M	7.05M	9.39M	13.06M
Cash Flow
Free Cash Flow	-7.32M	-7.32M	-4.89M	-6.64M	-12.28M	-13.67M
Operating Cash Flow	-7.32M	-7.32M	-4.89M	-6.64M	-12.28M	-13.66M
Investing Cash Flow	0.00	0.00	0.00	0.00	-5.66K	-6.15K
Financing Cash Flow	17.31M	17.03M	592.03K	4.83M	11.63M	14.17M

Edesa Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDSA, the sentiment is Negative. The current price of 1.48 is above the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.63, and below the 200-day MA of 2.11, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 48.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDSA.

Edesa Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPCN	52 Neutral	$50.13M	-10.30	-32.92%	―	-44.31%	-34.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EDSA	50 Neutral	$12.33M	-1.10	-99.57%	―	―	30.29%
COCP	45 Neutral	$15.30M	-1.17	-94.94%	―	―	49.10%
XTLB	39 Underperform	$6.62M	-9.56	―	―	―	65.45%
BIVI	38 Underperform	$9.50M	-0.14	-94.79%	―	―	84.44%

Edesa Biotech Corporate Events

Edesa Biotech Announces Positive Phase 3 Study Results

On October 8, 2025, Edesa Biotech announced positive results from a Phase 3 study of its drug candidate paridiprubart for treating Acute Respiratory Distress Syndrome (ARDS). The study demonstrated that paridiprubart met primary and secondary endpoints with statistical significance, showing a significant reduction in mortality and the need for invasive mechanical ventilation. The drug showed a 13% absolute improvement in survival at 28 days and a 22% relative risk reduction in mortality at 60 days compared to placebo. The results suggest a promising impact on the company’s operations and its positioning in the critical care therapeutics market.

The most recent analyst rating on (EDSA) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Edesa Biotech stock, see the EDSA Stock Forecast page.