CARsgen Therapeutics Holdings Ltd. (2171) AI Stock Analysis

• Market Cap: HK$11.51B
• Dividend Yield: N/A
• Average Volume (3M): 2.80M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: N/A
• EPS Growth: -4.33%
• Country: HK
• Employees: 465
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -1.53
• Shares Outstanding: 575,725,950
• 10 Day Avg. Volume: 2,973,192
• 30 Day Avg. Volume: 2,797,847
• PEG Ratio: 0.10
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.33
• 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: HK$10.01
• Price Target Upside: -53.66% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ―

CARsgen Therapeutics' financial performance is a concern due to ongoing losses and cash flow challenges, despite a strong liquidity position. The technical analysis suggests positive momentum, which contributes to a more favorable outlook. However, valuation remains unattractive due to the lack of profitability and dividends. Overall, while there are signs of potential growth, significant risks remain due to the financial challenges.

CARsgen Therapeutics Holdings Ltd. Business Overview & Revenue Model

Company Description

CARsgen Therapeutics Holdings Limited, a biopharmaceutical company, engages in discovering, developing, and commercializing chimeric antigen receptor T (CAR-T) cell therapies for the treatment of hematological malignancies and solid tumors in China and the United States. The company is involved in developing CT053, an autologous CAR-T product candidate that is in pivotal Phase II trial for the treatment of relapsed/refractory multiple myeloma in China; CT041, an autologous CAR-T product candidate that is in Phase Ib/II clinical trial for advanced gastric/gastroesophageal junction cancer and pancreatic cancer in China, as well as in Phase Ib clinical trial for advanced gastric or pancreatic cancer in the United States; and CT011, an autologous CAR-T product candidate that is in Phase I clinical trial for patients with Glypican-3 positive advanced hepatocellular carcinoma. It is also developing CT032, an autologous CAR-T products candidate that is in Phase I/II clinical trial for the treatment of B cell Non-Hodgkin's lymphoma in China; AB011, a humanized monoclonal antibody product candidate that is in Phase I clinical trial for the treatment of CLDN18.2 positive solid tumors in China; and CT017, an autologous Glypican-3-targeted CAR-T product candidate for the treatment of hepatocellular carcinoma, as well as other product candidates for the treatment of solid tumors. The company was founded in 2014 and is headquartered in Shanghai, China.

How the Company Makes Money

CARsgen Therapeutics Holdings Ltd. generates revenue primarily through the development and commercialization of its CAR T-cell therapies. The company earns money by advancing its proprietary therapies through clinical trials and subsequently obtaining regulatory approvals to bring these treatments to market. Revenue streams include licensing agreements, where CARsgen partners with other pharmaceutical companies for the development and distribution of its therapies, and potential sales of approved therapies. Additionally, the company may receive milestone payments and royalties from collaborations and partnerships with other biotech and pharmaceutical firms. Key factors contributing to its earnings include successful clinical trial outcomes, regulatory approvals, and strategic alliances that enhance the company's market presence and distribution capabilities.

CARsgen Therapeutics Holdings Ltd. Financial Statement Overview

Summary

CARsgen Therapeutics is progressing towards revenue generation, yet profitability remains a significant hurdle with consistent losses. The balance sheet is strong in terms of liquidity, but increasing leverage and continuous cash burn pose risks. Focus on improving operational efficiency and reducing cash outflows is crucial for future financial stability.

Income Statement

CARsgen Therapeutics Holdings Ltd. has shown some revenue generation in 2024 after periods of zero revenue, indicating a positive shift. However, the company continues to operate at a significant net loss, with negative EBIT and EBITDA margins, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The company maintains a robust cash position with significant cash and short-term investments compared to its total debt, resulting in a negative net debt, which is a strength. However, the debt-to-equity ratio has been rising, indicating increasing leverage, while the return on equity remains negative due to persistent losses.

Cash Flow

Operating cash flow remains negative, indicating that the company is not generating sufficient cash from its core operations. Although the free cash flow improved slightly in 2024 compared to 2023, it remains negative, highlighting ongoing cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
39.42M	0.00	0.00	25.81M	0.00
	Gross Profit
14.75M	0.00	0.00	25.81M	0.00
	EBIT
-808.19M	-767.65M	-881.30M	-585.99M	-327.05M
	EBITDA
-495.01M	-717.64M	-793.90M	-517.89M	-286.17M
	Net Income Common Stockholders
-798.13M	-747.79M	-892.25M	-4.74B	-1.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.48B	1.85B	2.27B	3.01B	1.04B
	Total Assets
1.67B	2.26B	2.76B	3.51B	1.25B
	Total Debt
166.42M	85.22M	119.44M	338.05M	100.26M
	Net Debt
-1.31B	-1.76B	-2.15B	-353.24M	-942.71M
	Total Liabilities
616.33M	455.51M	289.64M	508.98M	2.93B
	Stockholders Equity
1.06B	1.80B	2.47B	3.00B	-1.68B
Cash Flow		Free Cash Flow
-429.26M	-464.48M	-781.66M	-690.77M	-313.88M
	Operating Cash Flow
-409.69M	-454.94M	-643.05M	-512.32M	-295.15M
	Investing Cash Flow
12.52M	39.25M	2.39B	-2.47B	-6.90M
	Financing Cash Flow
18.46M	-22.14M	-236.51M	2.67B	1.30B

CARsgen Therapeutics Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.60
• 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 HK:2171, the sentiment is Positive. The current price of 21.6 is above the 20-day moving average (MA) of 20.40, above the 50-day MA of 16.96, and above the 200-day MA of 10.14, indicating a bullish trend. The MACD of 0.88 indicates Positive momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 51.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2171.

CARsgen Therapeutics Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
2171	53 Neutral	HK$11.51B	―	-55.68%	―	―	-4.33%
SBMFF		$10.87B	46.27	6.14%	1.22%	―	―
IVBXF		$17.07B	―	-0.72%	―	―	―
WXIBF		$13.76B	26.06	8.17%	―	―	―
4WO		€442.55M	―	-10.43%	―	―	―
6185	48 Neutral	HK$10.89B	―	-4.41%	―	94.98%	85.69%

CARsgen Therapeutics Holdings Ltd. Corporate Events

CARsgen’s CT071 Research Accepted for Presentation at EHA Congress

CARsgen Therapeutics Holdings Ltd. announced that the research results of their CAR T-cell product, CT071, targeting GPRC5D for newly diagnosed multiple myeloma, have been accepted for a poster presentation at the 2025 European Hematology Association Annual Congress. This development highlights CARsgen’s ongoing efforts to advance their pipeline of CAR T-cell therapies, potentially enhancing their market position in the biopharmaceutical industry by addressing critical treatment challenges in multiple myeloma and related conditions.

CARsgen Therapeutics Grants Options to Boost Employee Engagement

CARsgen Therapeutics Holdings Ltd. announced the grant of 3,535,500 options to 167 grantees under its Post-IPO Share Option Scheme, effective April 16, 2025. The options have an exercise price of HK$12.34 per share and are set to vest over four years, with no performance targets attached. This move is part of the company’s strategy to incentivize employees and align their interests with the company’s growth, potentially strengthening its position in the competitive biotechnology industry.

CARsgen Therapeutics Announces 2025 Annual General Meeting Agenda

CARsgen Therapeutics Holdings Ltd. has announced its upcoming Annual General Meeting scheduled for May 22, 2025, in Shanghai, China. Key agenda items include the adoption of the company’s audited financial statements for 2024, re-election of several directors, and authorization for the board to fix directors’ remuneration. The meeting will also address the re-appointment of Ernst & Young as the company’s auditor and authorize the board to manage share allotments and treasury share transactions. These decisions are crucial for the company’s governance and operational continuity, potentially impacting its strategic direction and shareholder value.

CARsgen’s Satri-cel Research Accepted for ASCO 2025 Presentation

CARsgen Therapeutics Holdings Limited announced that their research results on satricabtagene autoleucel (satri-cel), a CAR T-cell product candidate targeting Claudin18.2, have been accepted for oral presentation at the 2025 ASCO Annual Meeting. This development highlights the potential of satri-cel as a first-in-class treatment for Claudin18.2-positive solid tumors, particularly in advanced gastric and gastroesophageal junction adenocarcinoma. The acceptance of the abstract underscores CARsgen’s progress in clinical trials and its strategic positioning in the biopharmaceutical industry, potentially impacting stakeholders by advancing treatment options for challenging cancers.

CARsgen Therapeutics Reports 2024 Financial Results with Increased Net Loss

CARsgen Therapeutics Holdings Ltd. announced its annual results for 2024, reporting a revenue of approximately RMB39.4 million, primarily from its BCMA CAR T-cell product. Despite achieving a gross profit of RMB14.7 million, the company faced a net loss of RMB798 million, an increase from the previous year, attributed to higher net other losses and reduced R&D expenses. The company’s cash reserves decreased to RMB1,479 million, with expectations of maintaining adequate cash flow into 2028.

CARsgen Partners with Zhuhai SB Xinchuang to Boost CAR-T Cell Development in China

CARsgen Therapeutics Holdings Limited has announced a strategic partnership with Zhuhai Hengqin SB Xinchuang Equity Investment Management Enterprise to accelerate the development of allogeneic CAR-T cell products in mainland China. Through this agreement, CARsgen’s subsidiary, UCARsgen Biotech Limited, will receive a capital infusion of RMB80 million, diluting CARsgen’s stake to 92%. This move is expected to enhance CARsgen’s market positioning in the CAR-T cell therapy space, particularly in China, by securing exclusive rights for the research, development, and commercialization of specific CAR-T products targeting hematologic malignancies.