Ocumension Therapeutics (1477) AI Stock Analysis

• Market Cap: HK$6.03B
• Dividend Yield: N/A
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 74.73%
• EPS Growth: 32.13%
• Country: HK
• Employees: 489
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.19
• Shares Outstanding: 836,331,900
• 10 Day Avg. Volume: 1,456,522
• 30 Day Avg. Volume: 3,406,832
• PEG Ratio: 0.32
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 6.97
• P/FCF Ratio: -7.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$7.50 ▼(-0.66% Downside)

Ocumension Therapeutics faces significant profitability and cash flow challenges despite strong revenue growth. The technical analysis suggests mixed momentum, and the valuation indicates potential overvaluation. These factors contribute to a cautious outlook.

Positive Factors

Top-line Revenue Growth

Sustained revenue growth near 75% indicates strong market demand and commercial traction for products and partnerships. Over a multi-month horizon this supports scaling R&D and commercialization investments and strengthens bargaining power with partners and payors.

High Gross Margin

A gross margin above 50% signals durable production and pricing efficiency for core ophthalmic products. Such structural margin strength can underpin future operating leverage as sales scale, improving the path to profitability if operating expenses are controlled.

Conservative Capital Structure

Extremely low leverage and a high equity ratio provide financial flexibility to fund clinical programs and endure long R&D timelines. This balance sheet strength reduces near-term default risk and preserves optionality for strategic partnerships or bolt-on investments.

Negative Factors

Operating Cash Flow Shortfall

Absence of operating and free cash flow despite revenue growth indicates structural cash conversion issues. Over several months this raises reliance on external financing, increases dilution or financing costs, and constrains ability to self-fund clinical and commercialization activities.

Sustained Operating Losses

Deep negative EBIT and net margins reflect persistent unprofitable operations. This undermines long-term free cash generation and necessitates continued capital infusions, delaying durable profitability and increasing execution risk for clinical development and market expansion.

Negative Return on Equity

A negative ROE despite a strong equity base shows current capital is not generating shareholder returns. Structurally, this signals inefficient use of resources and heightens pressure to improve operational performance or pursue strategic changes to create lasting shareholder value.

Ocumension Therapeutics Business Overview & Revenue Model

Company Description

Ocumension Therapeutics, together with its subsidiaries, operates as an ophthalmic pharmaceutical platform company in the People's Republic of China. The company discovers, develops, and commercializes therapies for ophthalmic patients. It offers drugs for the treatment of blepharitis, infective and allergic conjunctivitis, dry eye, cataract, glaucoma and ocular hypertension, postoperative inflammation, uveitis, retinitis pigmentosa, age-related macular degeneration, cornea graft rejection, myopia, and optic neuritis. As of December 31, 2021, the company had 20 drug assets in its portfolio. Ocumension Therapeutics was founded in 2017 and is headquartered in Suzhou, the People's Republic of China.

How the Company Makes Money

Ocumension Therapeutics generates revenue through a multi-faceted business model that includes the development and sale of its proprietary drug products, licensing agreements, and partnerships with other pharmaceutical companies. The company's key revenue streams consist of product sales from its marketed therapies, milestone payments from collaborative agreements, and royalties from licensed products. Significant partnerships with larger pharmaceutical firms enhance its research capabilities and market reach, contributing to its earnings. Additionally, Ocumension may engage in clinical trial collaborations and government grants aimed at advancing its product pipeline, further diversifying its income sources.

Ocumension Therapeutics Financial Statement Overview

Summary

Ocumension Therapeutics shows strong revenue growth but faces profitability challenges with negative EBIT and net income. The balance sheet is strong with low leverage, but cash flow issues indicate potential liquidity problems.

Income Statement

Ocumension Therapeutics showcases strong revenue growth, with a notable increase in total revenue from the previous year (+69.4%). However, the company continues to operate at a loss with negative EBIT and net income, impacting its net profit margin (-64.3%) and EBIT margin (-73.4%). Gross profit margin remains healthy at 53.9%, indicating operational efficiency in production.

Balance Sheet

The company's balance sheet is strong with high equity levels, as evidenced by a low debt-to-equity ratio (0.01) and a high equity ratio (94.96%). However, the return on equity is negative (-7.11%) due to sustained net losses. The low leverage and high cash reserves suggest financial stability, but profitability remains a concern.

Cash Flow

The cash flow position is challenging, with zero operating cash flow and free cash flow, indicating potential liquidity issues. The absence of cash flow from operations despite revenue growth highlights operational cash constraints. Previous periods show negative free cash flow, suggesting ongoing cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	543.72M	417.31M	246.37M	158.96M	56.15M	13.10M
Gross Profit	231.51M	225.06M	144.37M	102.92M	36.94M	11.37M
EBITDA	-198.88M	-188.03M	-320.62M	-359.98M	-249.81M	-2.26B
Net Income	-249.25M	-268.27M	-379.79M	-402.64M	-259.99M	-2.26B
Balance Sheet
Total Assets	3.90B	3.97B	3.27B	3.04B	3.33B	2.60B
Cash, Cash Equivalents and Short-Term Investments	578.27M	769.21M	1.05B	1.29B	1.77B	2.03B
Total Debt	83.22M	25.78M	137.98M	29.58M	11.21M	7.24M
Total Liabilities	243.82M	200.19M	351.03M	295.04M	222.88M	97.23M
Stockholders Equity	3.65B	3.77B	2.92B	2.75B	3.11B	2.50B
Cash Flow
Free Cash Flow	-195.07M	-408.97M	-539.79M	-510.66M	-861.66M	-517.18M
Operating Cash Flow	-160.92M	-178.83M	-177.93M	-200.66M	-196.85M	-212.57M
Investing Cash Flow	-174.67M	275.91M	-259.78M	229.15M	-1.35B	629.70M
Financing Cash Flow	-69.99M	-213.79M	108.66M	-9.22M	668.85M	1.53B

Ocumension Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1477, the sentiment is Negative. The current price of 7.55 is above the 20-day moving average (MA) of 7.55, below the 50-day MA of 7.82, and below the 200-day MA of 8.37, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 57.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1477.

Ocumension Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0775	55 Neutral	HK$8.07B	-28.97	-7.26%	―	2.10%	-1350.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1477	47 Neutral	HK$6.03B	-20.72	-7.71%	―	74.73%	32.13%
6622	47 Neutral	HK$2.02B	-6.68	-14.84%	―	-38.38%	-22.12%
2616	42 Neutral	HK$7.80B	-17.23	-95.84%	―	-55.64%	-158.67%
2157	40 Underperform	HK$8.66B	-41.39	-21.42%	―	240.05%	-140.09%

Ocumension Therapeutics Corporate Events

Ocumension Completes Patient Enrollment for Real-World Study of OT-703 in Hainan

Ocumension Therapeutics has completed enrollment of 195 patients in a real-world study of OT-703 (ILUVIEN), a fluocinolone acetonide intravitreal implant for diabetic macular edema, at the Boao Lecheng International Medical Tourism Pilot Zone in Hainan, China. The implant, already approved by the U.S. FDA and registered in Hong Kong, is the only corticosteroid intraocular implant with a three-year sustained-release profile for DME, and the Hainan study marks a key step in generating local real-world evidence to support its regional rollout and potential commercialization across Greater China and other Asian markets, although the company cautions that successful commercialization is not assured.

The most recent analyst rating on (HK:1477) stock is a Hold with a HK$7.50 price target. To see the full list of analyst forecasts on Ocumension Therapeutics stock, see the HK:1477 Stock Forecast page.

Ocumension Increases Treasury Share Holdings to Nearly 21 Million

Ocumension Therapeutics has updated investors on its share repurchase activity, disclosing that the number of shares bought back and held in treasury has increased from 17,086,000 as of 31 December 2024 to 20,949,500 as of 19 December 2025. The company stated that these treasury shares may be used in line with applicable regulations, including potential sale for cash, transfer, or cancellation, signaling continued capital management activity without altering any other information disclosed in its latest annual report.

The most recent analyst rating on (HK:1477) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Ocumension Therapeutics stock, see the HK:1477 Stock Forecast page.

Ocumension Therapeutics Gains Approval for OT-702 in China

Ocumension Therapeutics announced that its biosimilar product OT-702, developed in collaboration with Shandong Boan Biotechnology, has received marketing approval from China’s National Medical Products Administration for treating neovascular age-related macular degeneration and diabetic macular edema. This approval positions Ocumension to potentially expand its market presence in China, leveraging its exclusive rights to promote and commercialize OT-702, which is similar to the globally approved EYLEA. The approval allows the company to apply for additional indications, potentially broadening its therapeutic offerings in the Chinese market.

The most recent analyst rating on (HK:1477) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Ocumension Therapeutics stock, see the HK:1477 Stock Forecast page.