Eledon Pharmaceuticals (ELDN) AI Stock Analysis

• Market Cap: $221.56M
• Dividend Yield: N/A
• Average Volume (3M): 623.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: 69.29%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 59,881,775
• 10 Day Avg. Volume: 608,026
• 30 Day Avg. Volume: 623,411
• PEG Ratio: -0.42
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.20
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 148.22
• Enterprise Value/Gross Profit: 2.35K
• Enterprise Value/Ebitda: -0.89
• 1Y Price Target: $9.00
• Price Target Upside: 143.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 35 Underperform
• Price Target: ―

Eldon Pharmaceuticals faces significant financial challenges with a lack of revenue and persistent losses, reflected in its low financial performance score. The stock's technical indicators point towards a bearish trend, further compounded by a negative P/E ratio and no dividend yield. The company's future hinges on successful product development or strategic financial interventions to improve its financial and market position.

Positive Factors

Clinical Trial Results

Tegoprubart's Phase 1b efficacy and safety results compare favorably against the current standard of care in preventing kidney transplant rejection.

Market Opportunity

Organ transplant rejection prevention could be a massive market opportunity for a safe and effective therapeutic, and Tego is well-positioned to tap into this space.

Trial Enrollment

The BESTOW trial completed enrollment four months ahead of schedule, as the transplant community is demanding a better immunosuppression treatment option.

Negative Factors

Competition

Current standard of care calcineurin inhibitors adversely impact transplant longevity, patient health, and quality of life, representing a clear opportunity for Tego.

Financial Health

Eledon reported having $124.9M in cash, cash equivalents, and short-term investments, which is expected to fund operations through the end of the year.

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 the absence of revenue and ongoing losses. While the company maintains a cash-rich balance sheet and low leverage, the persistent negative cash flows and equity erosion pose significant risks. Long-term viability relies heavily 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
EBITDA	-35.39M	-116.16M	-87.59M	-36.66M	-23.03M
Net Income	-35.32M	-40.33M	-87.50M	-34.51M	-22.81M
Balance Sheet
Total Assets	177.41M	89.07M	92.79M	170.55M	197.19M
Cash, Cash Equivalents and Short-Term Investments	140.18M	51.10M	56.41M	84.83M	114.19M
Total Debt	954.00K	383.00K	746.00K	769.00K	144.00K
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: Positive
• Last Price: 3.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELDN, the sentiment is Positive. The current price of 3.69 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.08, and above the 200-day MA of 3.67, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 66.98 is Neutral, neither overbought nor oversold. The STOCH value of 59.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELDN.

Eledon Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	¥347.74B	11.06	-2.99%	2.55%	11.77%	-10.16%
PLX	62 Neutral	$115.43M	36.19	10.42%	―	0.18%	-55.15%
FHTX	57 Neutral	$341.69M	―	322.49%	―	-30.66%	36.48%
ACIU	52 Neutral	$204.81M	―	-43.31%	―	95.23%	15.55%
INMB	52 Neutral	$64.34M	―	-139.01%	―	-90.97%	-27.47%
CMPS	47 Neutral	$399.25M	―	-60.67%	―	―	3.88%
ELDN	35 Underperform	$221.56M	―	-83.30%	―	―	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.