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Grace Therapeutics (GRCE)
NASDAQ:GRCE

Grace Therapeutics (GRCE) AI Stock Analysis

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GR

Grace Therapeutics

(NASDAQ:GRCE)

46Neutral
Grace Therapeutics is navigating a challenging financial landscape, marked by no revenue and persistent operational losses, which are somewhat mitigated by a strong equity base and absence of debt. The stock shows positive technical momentum but is at risk of being overbought. The negative P/E ratio highlights the risk associated with the company's current financial performance and lack of earnings. Strategic management is required to improve operational viability and financial sustainability.
Positive Factors
Clinical Outcomes
GTX-104 showed indications of improved outcomes with more patients having 'good recovery' at Day-90 follow-up on the aSAH modified Rankin scale.
Market Potential
Analyst believes GTX-104 is a potential new gold-standard for post-surgical aSAH standard of care in the ICU vs. current parenteral nimodipine.
Regulatory Progress
Acasti secured agreement from the FDA on a streamlined approach with an open-label pivotal safety trial.
Negative Factors
Safety Concerns
There were more deaths in the GTX-104 arm compared to the oral nimodipine arm, but no deaths were attributed to nimodipine therapy.

Grace Therapeutics (GRCE) vs. S&P 500 (SPY)

Grace Therapeutics Business Overview & Revenue Model

Company DescriptionGrace 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 MoneyGrace 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
Grace Therapeutics faces significant challenges with no revenue and persistent losses, raising sustainability concerns. The strong equity base and lack of debt provide some support, but the cash flow situation necessitates strategic financial management to secure future funding and ensure operational viability.
Income Statement
20
Very Negative
Grace Therapeutics shows no revenue generation over the past periods, which is concerning for financial health. The consistent negative EBIT and EBITDA margins indicate ongoing operational losses. The absence of revenue growth further exacerbates the situation, reflecting challenges in product development or market penetration.
Balance Sheet
45
Neutral
The company maintains a strong equity position, with a favorable equity ratio above 85% in the latest TTM. The absence of debt reduces financial risk, but the declining total assets and equity could indicate potential liquidity pressures in the future.
Cash Flow
30
Negative
Negative operating and free cash flows highlight ongoing cash burn, typical in early-stage biotech firms. However, cash reserves have been managed to cover short-term needs, albeit with decreasing cash flow from financing activities, suggesting potential funding challenges ahead.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
0.000.000.00196.00K0.00
Gross Profit
0.000.000.00120.00K0.00
EBIT
-12.85M-52.16M-15.59M-16.42M-24.44M
EBITDA
-11.33M-18.12M-15.34M-9.79M-22.95M
Net Income Common Stockholders
-12.85M-42.43M-9.82M-19.68M-25.51M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.00M27.89M43.66M60.73M14.24M
Total Assets
73.30M79.12M128.62M62.46M22.85M
Total Debt
0.00485.00K295.00K86.00K147.00K
Net Debt
-23.00M-27.39M-30.04M-50.86M-14.09M
Total Liabilities
11.56M11.17M20.35M6.80M9.86M
Stockholders Equity
61.74M67.95M108.27M55.66M12.99M
Cash FlowFree Cash Flow
-12.36M-15.93M-17.23M-14.39M-23.27M
Operating Cash Flow
-12.33M-15.91M-17.23M-14.32M-22.95M
Investing Cash Flow
104.00K13.15M-3.52M-9.86M8.14M
Financing Cash Flow
7.36M304.00K0.0059.49M13.18M

Grace Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.04
Price Trends
50DMA
2.44
Positive
100DMA
3.08
Negative
200DMA
2.99
Negative
Market Momentum
MACD
0.05
Negative
RSI
65.89
Neutral
STOCH
96.00
Negative
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 3.04 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.44, and above the 200-day MA of 2.99, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.89 is Neutral, neither overbought nor oversold. The STOCH value of 96.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRCE.

Grace Therapeutics Risk Analysis

Grace Therapeutics disclosed 54 risk factors in its most recent earnings report. Grace Therapeutics 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 0 New Risks

Grace Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.36B3.88-42.93%2.87%17.85%1.45%
46
Neutral
$37.18M-22.89%75.74%
41
Neutral
$28.43M-1038.73%34.97%
38
Underperform
$29.21M-91.02%236.92%-0.57%
38
Underperform
$30.14M78.50%55.52%
32
Underperform
$32.01M-140.78%16.20%
30
Underperform
$34.24M-415.84%-74.60%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRCE
Grace Therapeutics
3.04
0.08
2.70%
GBIO
Generation Bio
0.44
-2.73
-86.12%
PYPD
PolyPid
2.79
-2.15
-43.52%
ALGS
Aligos Therapeutics
5.60
-14.65
-72.35%
INKT
MiNK Therapeutics
7.40
-2.40
-24.49%
CVKD
Cadrenal Therapeutics, Inc.
16.45
9.09
123.51%
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.