Eledon Pharmaceuticals (ELDN) AI Stock Analysis

• Market Cap: $111.13M
• Dividend Yield: N/A
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: N/A
• EPS Growth: 72.35%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.21
• Shares Outstanding: 75,084,694
• 10 Day Avg. Volume: 2,338,449
• 30 Day Avg. Volume: 3,247,911
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.23
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.85K
• Enterprise Value/Ebitda: -1.76
• 1Y Price Target: $7.75
• Price Target Upside: 387.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.79
• Revenue Forecast (FY): N/A

• 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

Cash Reserves

Having substantial cash reserves provides Eledon Pharmaceuticals with the flexibility to fund ongoing R&D activities, crucial for a clinical-stage biotech firm focusing on drug development.

Low Financial Leverage

Low financial leverage reduces the risk of financial distress, allowing Eledon Pharmaceuticals to focus on long-term strategic goals without the pressure of high debt repayments.

Strategic Financial Management

Effective financial management through external funding helps sustain operations and supports the company's strategic initiatives in drug development, vital for future growth.

Negative Factors

Lack of Revenue

The absence of revenue indicates a lack of commercialized products, posing a challenge to financial sustainability and increasing reliance on external funding.

Negative Cash Flow

Persistent negative cash flow highlights operational inefficiencies and the need for continuous external funding, which could limit long-term financial stability.

Equity Erosion

Ongoing losses leading to equity erosion can undermine investor confidence and restrict the company's ability to raise capital for future growth initiatives.

Eledon Pharmaceuticals Business Overview & Revenue Model

Company Description

Eledon 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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-88.00K	-359.00K	-374.00K	-373.00K	-195.00K	-183.00K
EBITDA	-92.78M	-35.39M	-116.16M	-87.59M	-36.66M	-23.03M
Net Income	-79.79M	-36.18M	-116.54M	-87.97M	-34.51M	-22.81M
Balance Sheet
Total Assets	129.86M	177.41M	89.07M	92.79M	170.55M	197.19M
Cash, Cash Equivalents and Short-Term Investments	93.40M	140.18M	51.10M	56.41M	84.83M	114.19M
Total Debt	722.00K	954.00K	383.00K	746.00K	769.00K	144.00K
Total Liabilities	94.50M	59.27M	81.86M	8.61M	6.55M	6.59M
Stockholders Equity	35.36M	118.14M	7.21M	84.18M	164.00M	190.60M
Cash Flow
Free Cash Flow	-67.24M	-47.27M	-39.53M	-28.42M	-28.91M	-15.21M
Operating Cash Flow	-67.24M	-47.27M	-39.53M	-28.42M	-28.91M	-15.21M
Investing Cash Flow	-16.13M	-70.31M	-45.29M	0.00	0.00	11.04M
Financing Cash Flow	80.28M	133.52M	33.02M	0.00	-449.00K	109.58M

Eledon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.59
• 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 ELDN, the sentiment is Negative. The current price of 1.59 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 2.69, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 35.60 is Neutral, neither overbought nor oversold. The STOCH value of 51.56 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DSGN	47 Neutral	$355.36M	-5.58	-29.83%	―	―	-40.26%
EDIT	41 Neutral	$205.98M	―	-211.37%	―	-24.90%	7.19%
ANNX	38 Underperform	$597.73M	―	-83.98%	―	―	-35.62%
TVRD	37 Underperform	$41.17M	-0.25	-97.61%	―	-53.67%	86.75%
ELDN	35 Underperform	$111.13M	―	-95.49%	―	―	72.35%
TVGN	33 Underperform	$109.19M	-3.04	―	―	―	-234.46%

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.