Eledon Pharmaceuticals (ELDN) AI Stock Analysis

• Market Cap: $177.85M
• Dividend Yield: N/A
• Average Volume (3M): 265.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: N/A
• EPS Growth: 69.29%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -2.91
• Shares Outstanding: 59,881,775
• 10 Day Avg. Volume: 297,652
• 30 Day Avg. Volume: 265,275
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.50
• 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: $10.40
• Price Target Upside: 267.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Eledon Pharmaceuticals faces significant financial challenges due to a lack of revenue and persistent losses. The bearish technical indicators suggest further downside risk. Valuation metrics are unfavorable, with a negative P/E ratio indicating poor profitability. The company's future hinges on product development success or improved financial strategies.

Positive Factors

Clinical Trials

ELDN completed enrollment in BESTOW ahead of schedule, suggesting an encouraging physician and patient experience.

Drug Efficacy

Recent data from the trial show compelling results with subjects achieving significant insulin independence.

Negative Factors

Competition

The use of tegoprubart instead of tacrolimus is seen as a positive sign from the transplant community, indicating competitive pressure.

Market Valuation

ELDN is trading at an attractive valuation with multiple key intrinsic data catalysts expected, capable of providing important clinical validation and strategic value.

Eledon Pharmaceuticals Business Overview & Revenue Model

Company Description

Eledon Pharmaceuticals, Inc. (ELDN) is a clinical stage biotechnology company focused on developing targeted therapies for patients with autoimmune and neurodegenerative diseases. The company operates primarily in the pharmaceuticals sector and its core product pipeline includes experimental drugs aimed at modulating the immune system, with a key focus on the anti-CD40 Ligand pathway to address conditions such as organ transplant rejection and amyotrophic lateral sclerosis (ALS).

How the Company Makes Money

Eledon Pharmaceuticals makes money primarily through the development and potential commercialization of its pharmaceutical products. The company's revenue model includes licensing agreements, collaborations, and partnerships with other pharmaceutical companies and research institutions, which may provide upfront payments, milestone payments, and royalties on future sales. Additionally, Eledon may seek funding through public offerings and private investments to support the ongoing research and development of its drug candidates. At this stage, as Eledon is a clinical stage company, it does not yet generate revenue from product sales, and its financial performance is largely dependent on successful clinical trials and the subsequent approval and commercialization of its therapeutic candidates.

Eledon Pharmaceuticals Financial Statement Overview

Summary

Eledon Pharmaceuticals' financial health is weak due to zero revenue and ongoing losses. Although the company has a cash-rich balance sheet and low leverage, the persistent negative cash flows and equity erosion are concerning. Future viability depends on successful product development or strategic financial management.

Income Statement

Eledon Pharmaceuticals has consistently reported zero revenue over the past years, indicating a lack of commercial products or services in the market. Net losses are significant, and there is an absence of gross profit. The lack of revenue growth and profitability is a major concern for the company's financial health.

Balance Sheet

The company maintains a relatively strong equity position with a significant amount of cash and equivalents, although the absence of revenue and high net losses erode stockholders' equity over time. The debt-to-equity ratio is low, indicating low financial leverage, but the declining equity ratio suggests potential future financial instability.

Cash Flow

Eledon Pharmaceuticals shows a consistent negative operating cash flow, reflecting ongoing operational cash burn without corresponding revenue inflows. While free cash flow is negative due to operational outflows, recent financing activities have bolstered cash reserves, indicating reliance on external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	120.00K
	Gross Profit
0.00	-374.00K	-373.00K	-195.00K	-63.00K
	EBIT
0.00	-43.00M	8.49M	-36.87M	-18.46M
	EBITDA
0.00	0.00	-87.59M	-36.66M	-23.03M
	Net Income Common Stockholders
-35.32M	-40.33M	-87.50M	-34.51M	-22.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.18M	51.10M	56.41M	84.83M	114.19M
	Total Assets
177.41M	89.07M	92.79M	170.55M	197.19M
	Total Debt
954.00K	383.00K	746.00K	769.00K	144.00K
	Net Debt
-19.59M	-4.23M	-55.66M	-84.06M	-114.05M
	Total Liabilities
59.27M	81.86M	8.61M	6.55M	6.59M
	Stockholders Equity
118.14M	7.21M	84.18M	164.00M	190.60M
Cash Flow		Free Cash Flow
-47.27M	-39.53M	-28.42M	-28.91M	-15.21M
	Operating Cash Flow
-47.27M	-39.53M	-28.42M	-28.91M	-15.21M
	Investing Cash Flow
-70.31M	-45.29M	0.00	0.00	11.04M
	Financing Cash Flow
133.52M	33.02M	0.00	-449.00K	109.58M

Eledon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.83 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.87, and below the 200-day MA of 3.52, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 30.78 is Neutral, neither overbought nor oversold. The STOCH value of 27.21 is Neutral, 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
PLX	68 Neutral	$182.60M	87.83	7.64%	―	-18.47%	-70.64%
INMB	49 Neutral	$174.96M	―	-119.83%	―	-90.97%	-27.47%
FHTX	48 Neutral	$196.87M	―	322.49%	―	-33.83%	27.89%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
ACIU	48 Neutral	$151.38M	―	-36.38%	―	88.63%	18.78%
CMPS	43 Neutral	$195.37M	―	-81.56%	―	―	3.88%
ELDN	32 Underperform	$177.85M	―	-93.70%	―	―	69.29%

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.