Purple Biotech (PPBT) AI Stock Analysis

• Market Cap: ₪18.58M
• Dividend Yield: N/A
• Average Volume (3M): 8.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: N/A
• EPS Growth: 89.32%
• Country: IL
• Employees: 9
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 1,858,479,500
• 10 Day Avg. Volume: 1,387,469
• 30 Day Avg. Volume: 8,902,795
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.73
• 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: 48 Neutral
• Price Target: 1.00 ▼(-16.67% Downside)

The score is primarily constrained by weak fundamentals typical of an early-stage biotech (minimal revenue, continued losses, and ongoing cash burn). Technicals also weigh on the rating given the price trading below major moving averages with negative MACD. The main offset is a strong balance sheet with extremely low leverage, providing financial flexibility despite continued negative returns and declining equity.

Positive Factors

Balance Sheet Strength

Extremely low leverage provides durable financial flexibility for a clinical-stage biotech: it lowers insolvency risk and supports continued funding of trials or partnership deals without immediate refinancing pressure, allowing management to pursue development milestones.

Partnership-driven Revenue Model

A collaboration-focused model aligns risk and capital with larger partners, enabling Purple to fund clinical development and access commercial capabilities without building full-scale commercial infrastructure, preserving capital and strategic optionality over the medium term.

Narrowing Net Loss

Reduced net losses signal progress in cost management or milestone-related inflows, extending runway and improving the odds of reaching value-inflection events. Sustained improvement enhances ability to fund programs or negotiate favorable partnerships without urgent dilution.

Negative Factors

Pre-revenue Profile

Being pre-revenue creates persistent execution and commercialization risk: the company depends on successful clinical outcomes or partner deals to generate revenue, leaving long-term cash generation uncertain and shareholder value contingent on binary development milestones.

Persistent Cash Burn

Sustained negative operating and free cash flow depletes reserves and forces reliance on financing or partner payments, which can be dilutive or conditional. Over months, continued cash burn constrains R&D pacing and narrows strategic options if funding events delay.

Negative Returns & Asset Decline

Negative ROE and declining equity/assets indicate ongoing value dilution from losses; if persistent, this erodes shareholder capital and weakens negotiating leverage with partners or financiers, increasing the likelihood of dilutive financings or unfavorable deal terms.

Purple Biotech Business Overview & Revenue Model

Company Description

Purple Biotech Ltd., a clinical-stage company, focuses on developing therapies to overcome tumor immune evasion and drug resistance for cancer patients in the United States. Its oncology pipeline includes CM24, a humanized monoclonal antibody that blocks carcinoembryonic antigen related cell adhesion molecule 1 as a combination therapy with anti-PD-1 checkpoint inhibitors, which is in Phase 2 clinical trial for the treatment of pancreatic ductal adenocarcinoma; NT219, a small molecule that targets and inhibits insulin receptor substrate 1 and 2, and signal transducer and activator of transcription, which is in Phase 1/2 clinical trials for the treatment recurrent and/or metastatic squamous cell carcinoma of the head and neck cancer or colorectal adenocarcinoma; and IM1240, a multi-valent antibody designed to activate anti-tumoral immune response against 5T4-positive tumors, which is in preclinical stage. The company has collaboration agreement with Bristol Myers Squibb Company for the Phase 2 clinical trials to evaluate the combination of CM24 with the PD-1 inhibitor nivolumab in addition to chemotherapy; and Mor Research Applications. The company was formerly known as Kitov Pharma Ltd and changed its name to Purple Biotech Ltd. in December 2020. The company is headquartered in Rehovot, Israel.

How the Company Makes Money

Purple Biotech generates revenue primarily through partnerships, licensing agreements, and collaborations with other pharmaceutical companies. These agreements often involve upfront payments, milestone payments based on the achievement of specific development or regulatory milestones, and royalties on sales if the partnered products reach the market. Additionally, the company may receive research grants and funding from governmental and non-governmental organizations to support its R&D activities. Revenue streams are also bolstered by strategic alliances that facilitate the advancement and commercialization of its drug candidates, thereby expanding its market reach and enhancing potential returns on investment.

Purple Biotech Financial Statement Overview

Summary

Operating performance is very weak (TTM revenue ~0, ongoing losses, negative gross profit), and cash flow remains meaningfully negative (TTM operating cash flow about -6.5M; free cash flow about -5.5M). Offsetting this, the balance sheet is a clear strength with extremely low leverage (TTM debt-to-equity ~0.003), though equity/assets have trended down and ROE is negative.

Income Statement

Results reflect a pre-revenue biotechnology profile with no meaningful top-line contribution in most periods (including TTM (Trailing-Twelve-Months) revenue of 0). Losses remain sizable, though the TTM net loss (~3.3M) is an improvement versus the 2024 annual net loss (~7.2M). Gross profit is negative even at minimal revenue levels, and profitability remains structurally weak with ongoing operating losses.

Balance Sheet

The balance sheet is a relative strength: leverage is extremely low (TTM debt-to-equity ~0.003; debt ~256K against equity ~32.8M), providing financial flexibility. However, equity and total assets have trended down from 2020–2022 levels, consistent with ongoing losses and cash burn. Returns on equity are negative (TTM ~-8%), signaling continued value dilution risk if losses persist.

Cash Flow

Cash generation remains weak with persistent cash burn: TTM operating cash flow is about -6.5M and free cash flow about -5.5M, and free cash flow declined sharply versus the prior period (TTM free cash flow growth ~-37%). While the cash outflow is smaller than in 2023–2024, the business is still funding operations through cash reserves/financing rather than internally generated cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	195.80K	0.00	0.00	1.00M
Gross Profit	-120.27K	-62.00K	-196.00	-120.00	-55.00	999.94K
EBITDA	-3.55M	-7.05M	-19.88M	-21.49M	-17.52M	-28.41M
Net Income	-3.26M	-7.24M	-19.88K	-21.67M	-18.38M	-28.00M
Balance Sheet
Total Assets	39.06M	37.04M	44.30M	54.62M	70.20M	83.80M
Cash, Cash Equivalents and Short-Term Investments	10.45M	8.52M	15.41M	32.11M	47.20M	57.80M
Total Debt	256.00K	183.00K	351.00K	515.00K	749.00K	895.00K
Total Liabilities	6.25M	4.13M	10.01M	7.52M	5.09M	4.05M
Stockholders Equity	32.77M	32.86M	34.21M	46.91M	64.83M	79.39M
Cash Flow
Free Cash Flow	-5.54M	-14.37M	-19.93M	-16.96M	-15.19M	-12.25M
Operating Cash Flow	-6.54M	-14.37M	-19.93M	-16.73M	-15.07M	-12.09M
Investing Cash Flow	727.13K	509.00K	13.88M	19.91M	13.41M	-49.59M
Financing Cash Flow	10.00M	6.77M	5.45M	1.11M	1.51M	68.49M

Purple Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PPBT, the sentiment is Negative. The current price of 1.2 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.19, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PPBT.

Purple Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANF	54 Neutral	₪17.44M	―	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PPBT	48 Neutral	₪18.58M	-0.56	―	―	―	89.32%
BLRX	46 Neutral	₪41.77M	-1.96	―	―	-42.69%	88.04%
BOLT	42 Neutral	₪34.65M	-1.21	―	―	-46.97%	-127.67%