Grace Therapeutics (GRCE) AI Stock Analysis

• Market Cap: $54.31M
• Dividend Yield: N/A
• Average Volume (3M): 58.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: 45.97%
• Country: US
• Employees: 4
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• 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: 0.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $4.00 ▲(13.96% Upside)

The score is primarily constrained by weak financial performance (no revenue, ongoing losses, and negative free cash flow). Offsetting factors include constructive technical trend and meaningful positive corporate catalysts (NDA accepted with PDUFA date, positive Phase 3 outcome, extended IP, and incremental financing). Valuation remains pressured by negative earnings and no dividend support.

Positive Factors

Regulatory milestone (NDA acceptance, PDUFA)

NDA acceptance and a set PDUFA date represent a material, durable binary event: potential regulatory approval would enable first commercial sales, materially change revenue visibility and strategic priorities, and reduce binary clinical risk into a clear commercial execution challenge.

Strong patent protection

Patent protection through 2043 provides long-term exclusivity for the IV dosing regimen, supporting potential pricing power and barriers to generic competition if the product is approved, thereby strengthening commercialization economics and strategic licensing or partnership options.

Conservative leverage with equity buffer

A debt-free capital structure and material equity cushion reduce near-term solvency risk for a development-stage biopharma, giving management flexibility to pursue regulatory milestones and commercial planning without immediate debt-servicing constraints and lowering forced financing pressure.

Negative Factors

Pre-revenue business model

With no commercial revenue, the company’s business case depends entirely on successful clinical development and approval of GTx-104; until commercialization, revenue visibility is nil and the firm remains exposed to clinical, regulatory and commercialization execution risks.

Negative operating and free cash flow

Sustained negative operating and free cash flow with accelerating deterioration indicates ongoing cash burn tied to operations; absent near-term revenue, this elevates financing risk, distracts management toward fundraising, and can constrain R&D or commercialization investments.

Modest cash reserves relative to burn

Approximately $20M in cash against multi‑million annual cash burn creates a limited runway window; even with warrant exercises, the firm will likely need additional financing to support launch and commercialization activities, risking dilution or execution delays.

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

Pre-revenue profile ($0 TTM revenue) with continued losses (TTM EBIT -$12.5M) and negative free cash flow (TTM -$12.0M) weighs heavily. Offsetting factors are a debt-free balance sheet and still-meaningful equity ($62.8M TTM), plus a narrowing net loss versus 2023.

Income Statement

GRCE remains a pre-revenue biotech with $0 revenue in the latest TTM (Trailing-Twelve-Months) period and across recent annual periods, resulting in persistent operating losses. Losses have narrowed versus the outsized 2023 annual net loss (-$42.4M) to -$9.6M in 2025 annual and -$7.8M in TTM (Trailing-Twelve-Months), which is a positive trajectory. However, profitability is still materially negative (TTM EBIT of -$12.5M), and the lack of commercial revenue keeps earnings quality and visibility weak.

Balance Sheet

The balance sheet is relatively conservative from a leverage standpoint, with total debt at $0 in TTM (Trailing-Twelve-Months) and $0 in the 2025 annual report (and only de minimis debt historically). Equity remains meaningful at $62.8M (TTM) despite ongoing losses, which provides some buffer for a development-stage company. The key weakness is continued negative returns on equity (about -12.8% TTM), and equity has drifted down from prior years, reflecting ongoing cash burn and accumulated losses.

Cash Flow

Cash generation is a primary concern: operating cash flow is negative at -$12.0M in TTM (Trailing-Twelve-Months) and -$14.9M in the 2025 annual period, with free cash flow similarly negative (TTM -$12.0M). Free cash flow deterioration is notable in TTM (Trailing-Twelve-Months) (growth of -8.272), indicating an accelerating burn rate versus the prior comparison period in the dataset. A modest positive is that cash burn broadly tracks reported losses (free cash flow to net income ~1.0), suggesting limited non-cash distortions—but the company still requires funding to sustain operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	196.00K
Gross Profit	0.00	0.00	-11.00K	0.00	0.00	120.00K
EBITDA	-8.11M	-16.67M	-14.62M	-18.12M	-15.34M	-9.79M
Net Income	-7.82M	-9.57M	-12.85M	-42.43M	-9.82M	-19.68M
Balance Sheet
Total Assets	66.58M	71.99M	73.30M	79.12M	128.62M	62.46M
Cash, Cash Equivalents and Short-Term Investments	16.86M	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	3.76M	5.38M	11.56M	11.17M	20.35M	6.80M
Stockholders Equity	62.82M	66.61M	61.74M	67.95M	108.27M	55.66M
Cash Flow
Free Cash Flow	-12.02M	-14.90M	-12.36M	-15.93M	-17.23M	-14.39M
Operating Cash Flow	-12.02M	-14.90M	-12.33M	-15.91M	-17.23M	-14.32M
Investing Cash Flow	15.00K	0.00	104.00K	13.15M	-3.52M	-9.86M
Financing Cash Flow	13.70M	14.03M	7.36M	304.00K	0.00	59.49M

Grace Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.51
• 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 Neutral. The current price of 3.51 is below the 20-day moving average (MA) of 3.65, above the 50-day MA of 3.42, and above the 200-day MA of 3.09, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRCE.

Grace Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRCE	58 Neutral	$54.31M	-6.00	-13.15%	―	―	45.97%
PYPD	56 Neutral	$75.03M	-1.58	-390.53%	―	―	61.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INKT	48 Neutral	$58.86M	-4.04	―	―	―	21.48%
CVKD	47 Neutral	$17.91M	-0.93	-468.03%	―	―	-9.80%
ALGS	42 Neutral	$49.60M	-0.41	-141.82%	―	-55.88%	6.14%
GBIO	39 Underperform	$37.60M	-0.60	-80.81%	―	-17.82%	57.32%

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.

Grace Therapeutics Announces Q2 2026 Financial Results

On November 13, 2025, Grace Therapeutics announced its second quarter 2026 financial results and business updates, highlighting the FDA’s acceptance for review of its New Drug Application (NDA) for GTx-104, with a PDUFA target date set for April 23, 2026. The company’s Phase 3 STRIVE-ON trial showed positive outcomes for GTx-104, and a new U.S. patent was granted for its IV dosing regimen, extending intellectual property protection to 2043. Financially, the company reported a net loss reduction due to decreased R&D expenses and secured additional funding through warrant exercises, estimating cash and cash equivalents at $20 million as of October 31, 2025.

The most recent analyst rating on (GRCE) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Grace Therapeutics stock, see the GRCE Stock Forecast page.