Eledon Pharmaceuticals (ELDN) AI Stock Analysis

• Market Cap: $214.46M
• Dividend Yield: N/A
• Average Volume (3M): 225.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: N/A
• EPS Growth: 24.21%
• Country: US
• Employees: 20
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -5.71
• Shares Outstanding: 59,739,277
• 10 Day Avg. Volume: 243,802
• 30 Day Avg. Volume: 225,272
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.60
• 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: $9.50
• Price Target Upside: 157.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Eledon Pharmaceuticals shows potential in the biotechnology sector with promising trial outcomes. However, financial performance challenges, especially in profitability and cash flow, weigh heavily on the overall score. Technical indicators suggest a cautious approach, and valuation metrics highlight ongoing financial struggles. Corporate events provide a bright spot, indicating potential future growth opportunities.

Positive Factors

Clinical Efficacy

Recent data from an investigator initiated trial at UChicago Medicine evaluating tego as part of an immunosuppressive regimen to prevent islet cell transplant rejection appear compelling, with the first two subjects treated achieving insulin independence.

Clinical Trials

Eledon Pharmaceuticals completed enrollment of its BESTOW Phase 2 study with tegoprubart in patients with kidney transplants four months ahead of schedule.

Financial Position

Eledon bolstered its balance sheet by successfully raising $85M in a public offering.

Negative Factors

Competition

Results, along with positive Phase II data with Amgen’s dazodalibep and with Sanofi’s frexalimab, continue to validate the anti-CD40L class as a whole in large commercial indications.

Eledon Pharmaceuticals Business Overview & Revenue Model

Company Description

Eledon Pharmaceuticals, Inc. (Nasdaq:ELDN) is an immunology-focused biotechnology company utilizing its experience in the CD40/CD40L costimulatory pathway to develop and commercialize precision therapies for persons undergoing organ and cellular transplantation, and for people living with autoimmune and neurodegenerative disease. The company’s lead compound in development is tegoprubart (AT-1501), an anti-CD40L antibody. The company, which was established in 2004, is headquartered in Irvine, CA.

How the Company Makes Money

Eledon Pharmaceuticals makes money primarily through the development and commercialization of its therapeutic products. As a clinical-stage company, its current revenue model is centered around advancing its pipeline through various phases of clinical trials, aiming to achieve regulatory approval. The company may generate revenue through licensing agreements, collaborations, and partnerships with larger pharmaceutical companies, which could provide upfront payments, milestone payments, and royalties on future product sales. Eledon may also seek funding from government grants and research institutions to support its R&D activities. However, as of now, the company does not have any marketed products, and its revenue is largely dependent on external funding and investment to sustain its operations and advance its clinical programs.

Eledon Pharmaceuticals Financial Statement Overview

Summary

Eledon Pharmaceuticals is experiencing revenue growth, but faces challenges with profitability and cash flow. The balance sheet shows low leverage, but cash flow generation is weak, indicating a need for operational improvements.

Income Statement

The company has shown a recent increase in revenue in the TTM period, a positive sign for growth. However, profitability remains a significant issue with negative EBIT and EBITDA margins, indicating operational challenges. The net profit margin appears positive due to extraordinary items, but core operations are unprofitable, requiring attention.

Balance Sheet

Eledon Pharmaceuticals has a relatively strong equity base compared to its debt, reflected in a low debt-to-equity ratio, which suggests financial stability. However, the return on equity is not calculated due to negative net income in previous periods, which indicates inefficiencies in generating profit from shareholders' equity.

Cash Flow

The company's cash flow statement shows a decrease in free cash flow, highlighting liquidity challenges. The operating cash flow to net income ratio is negative, indicating the company has issues converting its net income into cash. Financing activities have been a primary source of cash inflow, which could lead to potential dilution risks.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
560.00K	0.00	0.00	0.00	120.00K	0.00
	Gross Profit
274.00K	-374.00K	-373.00K	-195.00K	-63.00K	-182.00K
	EBIT
-56.22M	-43.00M	8.49M	-36.87M	-18.46M	-16.05M
	EBITDA
-55.85M	0.00	-87.59M	-36.66M	-23.03M	-15.83M
	Net Income Common Stockholders
12.14M	-40.33M	-87.50M	-34.51M	-22.81M	-17.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.97M	51.10M	56.41M	84.83M	114.19M	8.79M
	Total Assets
17.03M	89.07M	92.79M	170.55M	197.19M	10.93M
	Total Debt
0.00	383.00K	746.00K	769.00K	144.00K	324.00K
	Net Debt
-12.97M	-4.23M	-55.66M	-84.06M	-114.05M	-8.47M
	Total Liabilities
2.53M	81.86M	8.61M	6.55M	6.59M	1.47M
	Stockholders Equity
14.49M	7.21M	84.18M	164.00M	190.60M	9.46M
Cash Flow		Free Cash Flow
-37.41M	-39.53M	-28.42M	-28.91M	-15.21M	-13.86M
	Operating Cash Flow
-37.41M	-39.53M	-28.42M	-28.91M	-15.21M	-13.86M
	Investing Cash Flow
-12.86M	-45.29M	0.00	0.00	11.04M	0.00
	Financing Cash Flow
53.35M	33.02M	0.00	-449.00K	109.58M	9.68M

Eledon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELDN, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.29, and above the 200-day MA of 3.46, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 34.31 is Neutral, neither overbought nor oversold. The STOCH value of 9.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELDN.

Eledon Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XFOR	57 Neutral	$51.90M	―	-26.35%	―	―	89.36%
ARQT	54 Neutral	$1.71B	―	-113.76%	―	229.74%	70.23%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
ELDN	47 Neutral	$214.46M	―	-119.41%	―	―	24.21%
CABA	45 Neutral	$86.51M	―	-62.16%	―	―	-25.02%
ALXO	38 Underperform	$47.70M	―	-88.91%	―	―	30.37%

Eledon Pharmaceuticals Corporate Events

Eledon Pharma Adjusts CEO Bonus Structure

Eledon Pharmaceuticals announced an amendment to the employment agreement of its CEO, David-Alexandre Gros, adjusting the market value cap for his performance bonus. The CEO’s bonus structure has been altered, allowing for a maximum bonus of $15 million if the company’s market value reaches $1.5 billion, with linear interpolation determining payouts between set thresholds.