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Eledon Pharmaceuticals (ELDN)
NASDAQ:ELDN

Eledon Pharmaceuticals (ELDN) AI Stock Analysis

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Eledon Pharmaceuticals

(NASDAQ:ELDN)

Rating:35Underperform
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 Data
Recent data from the trial evaluating tegoprubart as part of an immunosuppressive regimen to prevent islet-cell-transplant rejection appear compelling, with the first two subjects treated achieving insulin independence.
Financial Position
Eledon Pharmaceuticals' balance sheet is projected to be strong enough to achieve operational goals through late 2026.
Product Potential
The potential for tegoprubart to help people with Type 1 diabetes achieve durable insulin independence has blockbuster drug implications.
Negative Factors
Funding Concerns
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 (ELDN) vs. SPDR S&P 500 ETF (SPY)

Eledon Pharmaceuticals Business Overview & Revenue Model

Company DescriptionEledon Pharmaceuticals, Inc., clinical stage biopharmaceutical company, focuses on developing medicines for the patients living with autoimmune disease and amyotrophic lateral sclerosis (ALS), and requiring an organ or cell-based transplant. Its lead product candidate includes AT-1501, a humanized monoclonal antibody to target CD40 Ligand that is a molecule expressed on the surface of human immune system T cells, which is in Phase 2a clinical trials for the treatment of ALS, and Phase 2 clinical trials in islet cell transplantation for the treatment of type 1 diabetes. The company was formerly known as Novus Therapeutics, Inc. and changed its name to Eledon Pharmaceuticals, Inc. in January 2021. Eledon Pharmaceuticals, Inc. is headquartered in Irvine, California.
How the Company Makes MoneyEledon 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
10
Very Negative
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
40
Negative
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
30
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
192.00K0.000.000.000.00120.00K
Gross Profit
95.00K0.00-374.00K-373.00K-195.00K-63.00K
EBIT
-77.48M-70.58M-43.00M8.49M-36.87M-18.46M
EBITDA
-77.41M-35.39M0.00-87.59M-36.66M-23.03M
Net Income Common Stockholders
-19.05M-35.32M-40.33M-87.50M-34.51M-22.81M
Balance SheetCash, Cash Equivalents and Short-Term Investments
124.88M140.18M51.10M56.41M84.83M114.19M
Total Assets
161.31M177.41M89.07M92.79M170.55M197.19M
Total Debt
880.00K954.00K383.00K746.00K769.00K144.00K
Net Debt
-7.62M-19.59M-4.23M-55.66M-84.06M-114.05M
Total Liabilities
46.73M59.27M81.86M8.61M6.55M6.59M
Stockholders Equity
114.58M118.14M7.21M84.18M164.00M190.60M
Cash FlowFree Cash Flow
-54.59M-47.27M-39.53M-28.42M-28.91M-15.21M
Operating Cash Flow
-54.59M-47.27M-39.53M-28.42M-28.91M-15.21M
Investing Cash Flow
-76.20M-70.31M-45.29M0.000.0011.04M
Financing Cash Flow
133.64M133.52M33.02M0.00-449.00K109.58M

Eledon Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.98
Price Trends
50DMA
3.09
Negative
100DMA
3.61
Negative
200DMA
3.60
Negative
Market Momentum
MACD
-0.02
Negative
RSI
45.77
Neutral
STOCH
36.59
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 2.98 is below the 20-day moving average (MA) of 3.02, below the 50-day MA of 3.09, and below the 200-day MA of 3.60, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELDN.

Eledon Pharmaceuticals Risk Analysis

Eledon Pharmaceuticals disclosed 37 risk factors in its most recent earnings report. Eledon Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Eledon Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PLPLX
57
Neutral
$127.37M38.1010.42%0.18%-55.15%
54
Neutral
$5.28B3.29-45.38%2.80%16.77%-0.08%
52
Neutral
$168.74M-139.01%-90.97%-27.47%
51
Neutral
$243.03M322.49%-30.66%36.48%
47
Neutral
$426.17M-60.67%3.88%
45
Neutral
$163.26M-43.31%95.23%15.55%
35
Underperform
$181.44M-83.30%69.29%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELDN
Eledon Pharmaceuticals
2.98
0.26
9.56%
PLX
Protalix
1.52
0.39
34.51%
ACIU
AC Immune SA
1.73
-3.14
-64.48%
INMB
Inmune Bio
7.35
-1.60
-17.88%
CMPS
COMPASS Pathways
4.53
-2.38
-34.44%
FHTX
Foghorn Therapeutics
4.12
-2.11
-33.87%

Eledon Pharmaceuticals Corporate Events

Executive/Board Changes
Eledon Pharma Adjusts CEO Bonus Structure
Neutral
Dec 20, 2024

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.