Gain Therapeutics (GANX) AI Stock Analysis

• Market Cap: $45.85M
• Dividend Yield: N/A
• Average Volume (3M): 261.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -100.00%
• EPS Growth: 44.28%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -0.95
• Shares Outstanding: 27,786,951
• 10 Day Avg. Volume: 294,458
• 30 Day Avg. Volume: 261,382
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1124.84
• Price to Cash Flow (P/CF): -2.60
• 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: $8.00
• Price Target Upside: 406.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Gain Therapeutics exhibits significant financial challenges with declining revenues and persistent negative cash flow, impacting its overall financial health. The technical analysis suggests a bearish market sentiment, further weighing down the stock. However, recent corporate events regarding advancements in Parkinson's treatment offer some future potential, but these developments are still in early stages. Overall, the stock score reflects the high risk associated with its current financial and technical outlook.

Positive Factors

Clinical Study Progress

The Phase 1b trial of GT-02287 is on track for full enrollment, which indicates progress in the clinical study timeline.

Preclinical Data

GT-02287's preclinical data shows significant improvement in motor function and disease biomarkers in Parkinson's disease models.

Negative Factors

Financial Performance

Gain reported 4Q24 and full-year results with a net loss of ($3.3M) and ($20.4M), respectively, ending the period with $10.4M in cash on the balance sheet.

Potential Risks

Risks include clinical and/or commercial failure of GT-02287 in GBA1-PD and/or iPD indications, competition, financing, equity dilution and regulatory setbacks.

Gain Therapeutics Business Overview & Revenue Model

Company Description

Gain Therapeutics, Inc., a biotechnology company, engages in developing various therapies to treat diseases caused by protein misfolding. It focuses on rare genetic diseases and neurological disorders. The company uses its Site-Directed Enzyme Enhancement Therapy platform to discover allosteric sites on misfolded proteins and identify proprietary small molecules that bind these sites, restore protein folding, and treat disease. It is developing structurally targeted allosteric regulator candidates to treat various diseases, including Morquio B, GM1 gangliosidosis (GM1), neuronopathic Gaucher disease, GBA1 Parkinson's, Krabbe, and Mucopolysaccharidosis type 1 diseases. The company was founded in 2017 and is based in Bethesda, Maryland.

How the Company Makes Money

Gain Therapeutics primarily makes money through partnerships, collaborations, and licensing agreements with larger pharmaceutical and biotechnology companies. These partnerships usually involve upfront payments, milestone payments based on the achievement of development or regulatory milestones, and royalties on future sales of products developed using Gain's technology. Additionally, the company may receive research grants and funding for specific projects aimed at discovering therapies for rare diseases.

Gain Therapeutics Financial Statement Overview

Summary

Gain Therapeutics is experiencing significant financial difficulties, with declining revenues and persistent negative net income. Despite low leverage, the declining equity and asset levels indicate potential instability, and the ongoing negative cash flow highlights liquidity issues.

Income Statement

Gain Therapeutics has faced declining revenues over the years, with 2024 showing no revenue. The company has persistent negative net income and EBIT, indicating profitability challenges. Gross profit margins are negative when revenue is present, showing inefficiencies in operations.

Balance Sheet

The company maintains a relatively low level of debt with a debt-to-equity ratio of 0.03 for 2024, which is a positive aspect. However, the declining stockholders' equity and total assets indicate potential risks in financial stability. The equity ratio decreased significantly over the years, suggesting increased reliance on liabilities.

Cash Flow

Gain Therapeutics struggles with negative operating cash flow, though there is improvement in free cash flow due to reduced capital expenditures. The operating cash flow to net income ratio is unfavorable, showing issues in converting profits into cash. Free cash flow remains negative, reflecting ongoing liquidity challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
64.80K	0.00	55.18K	140.11K	164.99K	28.88K
	Gross Profit
90.00	0.00	-25.20K	75.94K	-7.00M	-2.23M
	EBIT
-21.43M	-20.35M	-22.25M	-17.78M	-13.83M	-3.48M
	EBITDA
-21.37M	-20.35M	-22.17M	-17.78M	-13.82M	-3.47M
	Net Income Common Stockholders
-21.37M	-20.41M	-22.27M	-17.59M	-13.89M	-3.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
303.32K	10.39M	16.79M	20.14M	36.88M	7.49M
	Total Assets
660.29K	12.12M	18.61M	24.10M	38.99M	9.60M
	Total Debt
98.84K	214.51K	1.03M	1.27M	1.61M	1.26M
	Net Debt
-204.48K	-10.17M	-10.77M	-6.04M	-35.27M	-6.23M
	Total Liabilities
1.11M	4.78M	6.03M	5.22M	4.17M	3.40M
	Stockholders Equity
-449.86K	7.34M	12.58M	18.88M	34.82M	6.20M
Cash Flow		Free Cash Flow
-21.10M	-22.49K	-18.88M	-14.81M	-12.46M	-3.26M
	Operating Cash Flow
-21.08M	0.00	-18.87M	-14.69M	-12.37M	-3.24M
	Investing Cash Flow
8.16M	4.98M	10.22M	-14.77M	-94.21K	-20.83K
	Financing Cash Flow
20.26M	13.01M	12.64M	-78.77K	41.77M	10.49M

Gain Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GANX, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.12, and below the 200-day MA of 1.81, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 6.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GANX.

Gain Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOLD	61 Neutral	$2.12B	―	-31.68%	―	32.29%	64.39%
BPMC	52 Neutral	$5.13B	―	-31.26%	―	104.04%	87.80%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%
RARE	47 Neutral	$3.11B	―	-214.50%	―	29.01%	23.93%
ORIC	42 Neutral	$306.13M	―	-54.73%	―	―	7.15%
GANX	31 Underperform	$45.85M	―	-204.95%	―	-100.00%	44.28%
PLRX	25 Underperform	$76.85M	―	-54.09%	―	-100.00%	-26.44%

Gain Therapeutics Corporate Events

Gain Therapeutics Unveils New Parkinson’s Treatment Data

On April 10, 2025, Gain Therapeutics announced the presentation of new preclinical data and the design of a Phase 1b clinical study for GT-02287, a promising treatment for Parkinson’s disease. The data, presented at the AD/PD 2025 International Conference, highlighted GT-02287’s potential to modify disease progression by reducing key biomarkers of neurodegeneration and inflammation in preclinical models. The ongoing Phase 1b study aims to assess the safety and pharmacokinetics of GT-02287 in Parkinson’s patients, with results expected to inform a Phase 2 study in late 2025. This development underscores Gain Therapeutics’ strategic positioning in the biotech industry, potentially offering a novel therapeutic approach for Parkinson’s disease and enhancing its market presence.

Spark’s Take on GANX Stock

According to Spark, TipRanks’ AI Analyst, GANX is a Underperform.

Gain Therapeutics is currently facing financial struggles, particularly in terms of revenue and cash flow, which significantly impact its stock score. Technical indicators suggest the stock is in a bearish phase, adding to the cautious outlook. However, recent corporate events, such as progress in clinical trials and leadership changes, provide some positive momentum and potential for future growth.

To see Spark’s full report on GANX stock, click here.

Gain Therapeutics Advances GT-02287 in Parkinson’s Trials

On February 6, 2025, Gain Therapeutics announced the advancement of their clinical development for GT-02287, a promising therapy for Parkinson’s disease. Following a successful Phase 1 study, they have begun a Phase 1b trial in Australia, aiming to demonstrate its disease-modifying effects. The company plans to continue its research and potentially expand trials, leveraging positive feedback from the FDA and maintaining strong financial health to support operations.