Grace Therapeutics (GRCE) AI Stock Analysis

• Market Cap: $58.18M
• Dividend Yield: N/A
• Average Volume (3M): 58.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: N/A
• EPS Growth: 45.97%
• Country: US
• Employees: 4
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 15,474,026
• 10 Day Avg. Volume: 55,886
• 30 Day Avg. Volume: 58,559
• PEG Ratio: 0.05
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.85
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -8.71K
• Enterprise Value/Ebitda: -4.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -1
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $4.50 ▲(19.68% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

Overall score is held back primarily by weak financial performance (pre-revenue, ongoing losses, and consistent cash burn), partially offset by a debt-free balance sheet. Technicals are neutral with no strong momentum signal, while valuation remains constrained by negative earnings and no dividend. A key upside driver is the favorable corporate event backdrop (NDA acceptance with a near-term PDUFA date, positive Phase 3 data, and strengthened IP).

Positive Factors

Regulatory & Clinical Milestones

NDA acceptance plus a defined PDUFA date and positive Phase 3 data create a clear pathway to potential approval and commercialization. The new U.S. patent through 2043 strengthens exclusivity and a competitive moat, supporting long-term commercial economics if approved.

Debt-free Balance Sheet

A zero-debt capital structure reduces insolvency and interest burden risk, providing financial flexibility to fund clinical milestones or licensing discussions. The sizable equity cushion supports near-term development spend without immediate leverage-related constraints.

Executive Retention & M&A Readiness

Strengthened severance and change-in-control protections improve incentive alignment and retention through critical regulatory milestones or a sale process. This reduces leadership turnover risk during commercialization or strategic transactions, aiding execution continuity.

Negative Factors

Pre-revenue Business Model

No commercial revenue leaves the company dependent on approvals or external funding to become self-sustaining. Persistent net losses mean the business lacks operating cash generation, increasing dilution and financing execution risk over the medium term.

Negative Cash Flow / Cash Burn

Consistent negative operating and free cash flow requires ongoing capital raises to fund development and potential launch. Although burn has improved, volatility and continued negative FCF create runway uncertainty and may force dilutive financings that affect strategic flexibility.

Very Small Workforce

An extremely small employee base constrains internal capacity for regulatory, manufacturing oversight, and commercial preparation. Reliance on partners and contractors elevates execution risk for launch readiness, post-approval obligations, and scaling operations.

Grace Therapeutics Business Overview & Revenue Model

Company Description

Grace Therapeutics, Inc. engages in the development and commercialization of pharmaceutical products for rare and orphan diseases in Canada. The company's lead product candidate is the GTX-104, an intravenous infusion to treat subarachnoid hemorrhage. It also develops GTX-102, an oral mucosal betamethasone spray for the treatment of ataxia-telangiectasia; and GTX-101, a topical bioadhesive film-forming bupivacaine spray for postherpetic neuralgia. The company was formerly known as Acasti Pharma Inc. and changed its name to Grace Therapeutics, Inc. in October 2024. The company was incorporated in 2002 and is headquartered in Princeton, New Jersey.

How the Company Makes Money

Grace Therapeutics makes money primarily through the development and commercialization of its proprietary therapeutic products. The company generates revenue by selling its approved drugs to healthcare providers, hospitals, and specialty pharmacies. Key revenue streams include product sales, licensing agreements, and strategic partnerships with other pharmaceutical companies. These partnerships often involve collaboration on research and development efforts, as well as co-marketing and distribution agreements that expand the reach of Grace's products. Additionally, the company may receive milestone payments and royalties from out-licensed products and technologies that are successfully commercialized by its partners.

Grace Therapeutics Financial Statement Overview

Summary

Financial profile is dominated by pre-revenue operations ($0 revenue), ongoing losses (TTM net loss about -$6.0M), and persistent negative operating/free cash flow (TTM about -$10.1M). Positives include a debt-free balance sheet and sizable equity cushion (~$64.9M), with some improvement in loss magnitude versus the prior year.

Income Statement

Results remain pre-revenue, with total revenue at $0 in recent periods (including 2025 TTM (Trailing-Twelve-Months)). Losses are still meaningful, though the net loss has improved versus the prior year (2025 annual net loss of about -$9.6M vs. -$12.9M in 2024), and 2025 TTM net loss is about -$6.0M. The core weakness is the lack of commercial revenue and persistently negative profitability, which keeps the business reliant on funding rather than operating performance.

Balance Sheet

The balance sheet is conservatively levered, with total debt at $0 in 2025 and debt-to-equity near zero across the history provided. Equity remains sizable (about $64.9M in 2025 TTM (Trailing-Twelve-Months)), providing a cushion for ongoing investment. Offsetting this, returns on equity are negative (around -9% in 2025 TTM (Trailing-Twelve-Months)), and equity has declined materially from 2022 levels, reflecting continued losses.

Cash Flow

Cash generation is weak, with operating cash flow and free cash flow negative in all periods shown (2025 TTM (Trailing-Twelve-Months) operating and free cash flow about -$10.1M). Cash burn has improved versus the 2025 annual figure (-$14.9M), but free cash flow growth is sharply negative in the latest TTM view, signaling volatility in burn rate. The main positive is that cash burn has generally tracked reported losses (free cash flow to net income ~1.0), but the business is still not self-funding.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	196.00K
Gross Profit	-4.12K	0.00	-11.00K	0.00	0.00	120.00K
EBITDA	-7.76M	-16.67M	-14.62M	-18.12M	-15.34M	-9.79M
Net Income	-6.84M	-9.57M	-12.85M	-42.43M	-9.82M	-19.68M
Balance Sheet
Total Assets	68.49M	71.99M	73.30M	79.12M	128.62M	62.46M
Cash, Cash Equivalents and Short-Term Investments	18.67M	22.13M	23.00M	27.89M	43.66M	60.73M
Total Debt	0.00	0.00	0.00	485.00K	295.00K	86.00K
Total Liabilities	3.60M	5.38M	11.56M	11.17M	20.35M	6.80M
Stockholders Equity	64.89M	66.61M	61.74M	67.95M	108.27M	55.66M
Cash Flow
Free Cash Flow	-10.13M	-14.90M	-12.36M	-15.93M	-17.23M	-14.39M
Operating Cash Flow	-10.13M	-14.90M	-12.33M	-15.91M	-17.23M	-14.32M
Investing Cash Flow	0.00	0.00	104.00K	13.15M	-3.52M	-9.86M
Financing Cash Flow	17.75M	14.03M	7.36M	304.00K	0.00	59.49M

Grace Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRCE, the sentiment is Positive. The current price of 3.76 is below the 20-day moving average (MA) of 3.85, above the 50-day MA of 3.71, and above the 200-day MA of 3.25, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRCE.

Grace Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PYPD	56 Neutral	$67.25M	-2.64	-390.53%	―	―	61.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GRCE	50 Neutral	$58.18M	-4.61	-13.15%	―	―	45.97%
INKT	48 Neutral	$51.40M	-5.39	―	―	―	21.48%
CVKD	47 Neutral	$18.69M	-2.63	-468.03%	―	―	-9.80%
ALGS	42 Neutral	$40.98M	-3.81	-141.82%	―	-55.88%	6.14%

Grace Therapeutics Corporate Events

Grace Therapeutics Enhances Executive Severance and Change‑in‑Control Terms

On January 10, 2026, Grace Therapeutics amended its employment letter agreements with its CEO and four senior executives, revising severance protections and change-in-control terms for these key officers. Under the new terms, executives terminated without cause outside of a change in control will receive accrued obligations plus six months of salary and COBRA coverage (extended to 12 months for the CEO), while any unvested equity is forfeited; if terminated without cause or resigning for good reason in connection with or within 12 months after a change in control, they are entitled to accrued obligations, a lump-sum payment equal to six months of base salary plus target bonus (18 months for the CEO), COBRA coverage for the same period, and full vesting of unvested equity awards, reflecting a material enhancement of executive protections in potential sale or takeover scenarios.

The most recent analyst rating on (GRCE) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Grace Therapeutics stock, see the GRCE Stock Forecast page.