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Elevation Oncology (ELEV)
NASDAQ:ELEV
US Market

Elevation Oncology (ELEV) AI Stock Analysis

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Elevation Oncology

(NASDAQ:ELEV)

Rating:33Underperform
Price Target:
Elevation Oncology's overall stock score is low due to its lack of revenue, ongoing losses, and reliance on external financing, typical of an early-stage biotech firm. Recent corporate restructuring and product discontinuation further dampen the outlook, despite a stable cash position. The technical analysis shows a downward trend, adding to the challenges in valuation. Investors should be cautious and consider the speculative nature of this stock.
Positive Factors
Market Opportunities
The target biology of HER3 is considered de-risked due to the success of patritumab deruxtecan in breast cancer and EGFR-mutated non–small-cell lung cancer, both representing large market opportunities.
Strategic Alternatives
The company is also in the midst of a strategic review to maximize shareholder value.
Technological Advancements
EO-1022 leverages Synaffix’s technology, which is seen as an encouraging development.
Negative Factors
Financial Performance
Elevation reported a net loss of $14.2 million, or a loss of $0.24 per share, which was worse than the consensus estimate of a loss of $11.4 million, or a loss of $0.19 per share.
Funding Limitations
Elevation expects a cash position of roughly $30 million to $35 million at the end of the second quarter, indicating limited funding for operations.
Strategic Uncertainty
Management is not ready to commit to a specific direction regarding strategic alternatives, but is committed to providing updates.

Elevation Oncology (ELEV) vs. SPDR S&P 500 ETF (SPY)

Elevation Oncology Business Overview & Revenue Model

Company DescriptionElevation Oncology, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapeutics for the treatment of cancer in genomically defined patient populations in the United States. The company's lead program is the seribantumab, an anti-HER3 monoclonal antibody that is in Phase II CRESTONE trial for the treatment of advanced solid tumors harboring a neuregulin-1 fusion. Elevation Oncology, Inc. was incorporated in 2019 and is based in New York, New York.
How the Company Makes MoneyElevation Oncology makes money primarily through the development and commercialization of its proprietary cancer therapies. Its revenue model is heavily reliant on successful clinical trials and subsequent regulatory approvals, which enable the company to license or sell its drugs to healthcare providers and pharmaceutical companies. Significant partnerships with larger pharmaceutical companies and research institutions can also provide funding and resources to support its research and development efforts. Additionally, the company may earn revenue through milestone payments, royalty agreements, and collaborations with other entities in the healthcare industry, which contribute to its overall earnings.

Elevation Oncology Financial Statement Overview

Summary
Elevation Oncology is an early-stage biotech firm with no revenue and ongoing operational losses, reflecting its focus on R&D. While the cash position is stable, the company relies heavily on external financing due to negative cash flows. Improved equity position is a positive, but the absence of revenue generation remains a significant challenge.
Income Statement
15
Very Negative
Elevation Oncology's income statement shows a lack of revenue over the years, with consistently negative net income and EBIT margins. The absence of revenue growth is a significant challenge, and the company's profitability metrics reflect ongoing operational losses. Overall, the income statement reflects the early-stage nature of a biotech company focusing on research and development without commercialized products.
Balance Sheet
35
Negative
The balance sheet indicates a relatively stable cash position with no debt as of the latest year, but the company has a history of negative stockholders' equity and high liabilities in prior years. The company's equity position has improved recently, indicating better financial management. However, the lack of assets and ongoing losses remain concerns.
Cash Flow
20
Very Negative
The cash flow statement reveals negative operating and free cash flows, indicating a reliance on external financing for cash inflows. The operating cash flow to net income ratio is negative due to losses, and free cash flow growth is not viable without revenue. Continued cash burn is a risk, though recent financing activities have bolstered cash reserves.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.00-39.00K-27.00K-18.00K-15.00K
EBIT
-44.70M-45.45M-94.55M-32.05M-17.28M
EBITDA
-44.70M-41.47M-94.52M-32.03M-17.25M
Net Income Common Stockholders
-44.48M-45.70M-95.08M-32.04M-17.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
93.18M83.11M90.28M146.28M79.40M
Total Assets
95.63M89.09M94.16M149.49M80.91M
Total Debt
31.13M30.14M29.43M0.000.00
Net Debt
-18.33M-19.12M-16.48M-146.28M-79.40M
Total Liabilities
35.60M34.28M45.13M8.80M103.99M
Stockholders Equity
60.02M54.81M49.03M140.70M-23.08M
Cash FlowFree Cash Flow
-36.36M-56.18M-85.57M-30.17M-12.37M
Operating Cash Flow
-36.36M-56.18M-85.48M-30.17M-12.30M
Investing Cash Flow
-8.37M11.54M-44.40M0.00-71.00K
Financing Cash Flow
44.94M47.98M29.51M97.05M90.03M

Elevation Oncology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.32
Price Trends
50DMA
0.33
Negative
100DMA
0.48
Negative
200DMA
0.55
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.49
Neutral
STOCH
51.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELEV, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.33, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 51.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELEV.

Elevation Oncology Risk Analysis

Elevation Oncology disclosed 73 risk factors in its most recent earnings report. Elevation Oncology 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 3 New Risks
1.
The price of our common stock does not meet the requirements for continued listing on the Nasdaq Global Select Market. If we fail to regain compliance with the minimum listing requirements, our common stock will be subject to delisting. Our ability to publicly or privately sell equity securities and the liquidity of our common stock could be adversely affected if our common stock is delisted. Q4, 2024
2.
Substantial doubt exists as to our ability to continue as a going concern. Our ability to continue as a going concern is subject to material uncertainty and dependent on our success at raising additional capital sufficient to meet our obligations on a timely basis. If we fail to obtain additional financing when needed, we may be unable to complete the development, regulatory approval and commercialization of our product candidates. Q4, 2024
3.
There is substantial uncertainty regarding the new U.S. presidential administration's initiatives and how these might impact the FDA, its implementation of laws, regulations, policies and guidance and its personnel. These initiatives could prevent, limit or delay development and regulatory approval of our product candidates, which would adversely affect our business. Q4, 2024

Elevation Oncology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
$5.24B3.07-43.58%2.80%16.87%-0.11%
51
Neutral
$21.72M-31.35%473.46%62.25%
44
Neutral
$37.53M-197.11%
41
Neutral
$14.32M-89.73%-100.00%-292.59%
34
Underperform
$15.80M-616.17%71.39%
34
Underperform
$12.17M-208.72%56.38%
33
Underperform
$19.43M-78.32%47.73%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELEV
Elevation Oncology
0.32
-3.37
-91.33%
MEIP
MEI Pharma
2.20
-0.94
-29.94%
GOVX
GeoVax Labs
1.02
-0.67
-39.64%
CLRB
Cellectar Biosciences
0.25
-2.81
-91.83%
AKTX
Akari Therapeutics
1.25
-0.61
-32.80%
SLGL
Sol-Gel Technologies
7.68
-0.32
-4.00%

Elevation Oncology Corporate Events

Executive/Board Changes
Elevation Oncology’s Chief Medical Officer Steps Down
Neutral
Apr 1, 2025

On March 31, 2025, Elevation Oncology announced that Chief Medical Officer Dr. Valerie M. Jansen stepped down from her position. Dr. Jansen will receive severance benefits as per her agreement with the company, including a lump-sum payment, healthcare coverage, and accelerated vesting of equity awards. This transition is part of a separation agreement that includes standard legal provisions, potentially impacting the company’s operational dynamics and stakeholder relations.

Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and Strategy
Elevation Oncology Restructures Amid EO-3021 Discontinuation
Negative
Mar 20, 2025

On March 20, 2025, Elevation Oncology announced the discontinuation of its EO-3021 development, a Claudin 18.2 ADC, due to insufficient efficacy in Phase 1 trials. The company will focus on advancing EO-1022, a HER3 ADC, and is evaluating strategic options to maximize shareholder value. As part of a corporate restructuring, Elevation Oncology is reducing its workforce by approximately 70% and expects its cash reserves to fund operations into the second half of 2026. Additionally, Chief Medical Officer Valerie M. Jansen will step down on March 31, 2025, but will continue as a consultant to assist with the transition.

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.