Forte Biosciences (FBRX) AI Stock Analysis

• Market Cap: $34.55M
• Dividend Yield: N/A
• Average Volume (3M): 42.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: N/A
• EPS Growth: 43.64%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -16.47
• Shares Outstanding: 6,581,667
• 10 Day Avg. Volume: 21,599
• 30 Day Avg. Volume: 42,839
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.40
• 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: $61.00
• Price Target Upside: 1061.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Forte Biosciences is in a precarious financial situation, with no revenue streams and increasing losses, resulting in a low financial performance score. Technical analysis indicates mixed signals with potential short-term weakness. The valuation reveals significant financial distress and lack of profitability. These factors result in a low overall stock score, highlighting the company's need for strategic pivots or partnerships to ensure long-term viability.

Positive Factors

Clinical Trials

The company continues to advance lead asset FB102 towards topline data in celiac disease, with almost half of the patients completing the trial without discontinuations, suggesting good tolerability.

Operational Expenses

Forte Biosciences reported Q4 operational expenses of $7M, below the estimated $9M.

Safety and Efficacy

Both NHP toxicology and healthy volunteer SAD/MAD studies have demonstrated favorable safety as well as robust and selective reduction of NK cells with FB102.

Negative Factors

Competition

FB102 shows greater potency than observed with competing IL-15 mAbs like AMGN's ordesekimab (AMG-714) and NVS's CALY-002.

Market Competition

FB102 significantly reduced NK cells by up to ~80-90% in non-human primates, exceeding the ~60-70% reduction shown by Amgen's IL-15 mAb AMG-714 and the ~80% reduction seen with Calypso's IL-15 mAb CALY-002.

Forte Biosciences Business Overview & Revenue Model

Company Description

Forte Biosciences, Inc. (FBRX) is a clinical-stage biopharmaceutical company dedicated to developing innovative therapies for the treatment of inflammatory skin diseases. The company's primary focus is on atopic dermatitis, a chronic skin condition characterized by inflammation and itching. Forte Biosciences leverages its proprietary FB-401 platform, which is a live biotherapeutic product designed to modulate the immune system and address the underlying causes of such skin conditions.

How the Company Makes Money

Forte Biosciences generates revenue through the development and commercialization of its therapeutic candidates. As a clinical-stage company, its primary source of potential revenue is from licensing agreements, collaborations, and partnerships with larger pharmaceutical companies. These partnerships can provide upfront payments, milestone payments, and royalties on future sales of successfully developed and commercialized products. However, as of the latest available information, Forte Biosciences does not yet have any approved products on the market and thus relies heavily on investor funding and strategic partnerships to finance its operations and continue its research and development efforts.

Forte Biosciences Financial Statement Overview

Summary

Forte Biosciences is experiencing significant financial challenges with consistent net losses, negative cash flows, and no revenue growth. Despite being debt-free, diminishing cash reserves and equity highlight the need for external funding to maintain operations.

Income Statement

Forte Biosciences shows a concerning lack of revenue over multiple periods. The TTM period reports a slight revenue increase, but with a negative gross profit margin due to high costs. The net profit margin is also negative, indicating ongoing financial challenges. The lack of revenue growth and persistent losses signal significant financial instability.

Balance Sheet

The company maintains a positive stockholders' equity, suggesting some financial buffer. However, the balance sheet shows a significant deterioration in cash reserves and equity over time. The debt-to-equity ratio is zero due to no debt, but this is overshadowed by declining equity and assets, indicating potential financial risk.

Cash Flow

Operating and free cash flows are consistently negative, reflecting cash burn issues. The company has not demonstrated any improvement in cash flow generation, which could challenge sustainability without external funding. The reliance on financing cash flow highlights potential liquidity challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.00K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-19.00K	-9.00K	0.00	-36.00K	-54.00K	-11.00K
	EBIT
-35.63M	-32.49M	-13.90M	-21.49M	17.83M	-4.06M
	EBITDA
-35.60M	-32.48M	-13.90M	-21.45M	-46.43M	-4.05M
	Net Income Common Stockholders
-34.20M	-31.48M	-13.86M	-21.71M	-78.54M	-4.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.89M	37.13M	41.10M	42.04M	58.77M	6.94M
	Total Assets
34.29M	38.98M	42.00M	43.31M	61.24M	7.66M
	Total Debt
26.80M	0.00	0.00	0.00	0.00	8.77M
	Net Debt
19.84M	-11.96M	-41.10M	-42.04M	-58.77M	1.83M
	Total Liabilities
35.80M	3.67M	3.18M	1.76M	2.26M	12.43M
	Stockholders Equity
-1.51M	35.31M	38.82M	41.55M	58.98M	-4.77M
Cash Flow		Free Cash Flow
-29.73M	-28.79M	-8.19M	-16.68M	-18.42M	-2.93M
	Operating Cash Flow
-29.70M	-28.71M	-8.19M	-16.68M	-18.42M	-2.77M
	Investing Cash Flow
-22.00K	47.00K	0.00	0.00	3.58M	-161.60K
	Financing Cash Flow
-95.00K	24.68M	7.24M	-44.00K	66.67M	4.86M

Forte Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.25
• 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 FBRX, the sentiment is Negative. The current price of 5.25 is below the 20-day moving average (MA) of 6.78, below the 50-day MA of 8.64, and below the 200-day MA of 11.11, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 65.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBRX.

Forte Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
AYTU	43 Neutral	$6.41M	―	-18.06%	―	-30.19%	75.92%
VTGN	42 Neutral	$61.19M	―	-46.28%	―	-33.00%	54.91%
OCGN	40 Underperform	$201.61M	―	-154.01%	―	187.79%	32.40%
FBRX	38 Underperform	$34.55M	―	-80.82%	―	―	43.64%

Forte Biosciences Corporate Events

Forte Biosciences Secures $53M for FB102 Advancements

Forte Biosciences, Inc. has announced a successful $53 million private placement with key institutional investors to advance its lead candidate, FB102, in autoimmune indications. The oversubscribed financing demonstrates strong investor confidence, enabling Forte to further clinical trials and explore additional applications for FB102. With a celiac disease trial underway and other studies planned, Forte anticipates significant clinical milestones in 2025.