OncoTherapy Science (4564) AI Stock Analysis

• Market Cap: ¥8.06B
• Dividend Yield: N/A
• Average Volume (3M): 39.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 99.87%
• EPS Growth: 40.60%
• Country: JP
• Employees: 54
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.63
• Shares Outstanding: 383,643,700
• 10 Day Avg. Volume: 60,218,049
• 30 Day Avg. Volume: 39,409,347
• PEG Ratio: 0.19
• Price to Book (P/B): 10.03
• Price to Sales (P/S): 9.75
• P/FCF Ratio: -8.97
• 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: 46 Neutral
• Price Target: ¥20.50 ▼(-2.38% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is primarily weighed down by weak financial performance—ongoing losses and negative cash flow with reliance on financing. Technicals provide a partial offset via positive momentum indicators, but the stock still trades below key moving averages. Valuation remains constrained by negative earnings and no dividend support.

Positive Factors

Oncology-focused R&D

OncoTherapy's specialization in cancer genomics and molecular-targeted therapies places it squarely in a structurally growing oncology sector with persistent unmet needs. This scientific focus creates high technical barriers to entry, supports durable pipeline value and long-term partnership interest beyond short-term cycles.

Revenue & EPS growth trend

Reported mid-teens revenue growth and notable EPS improvement imply improving commercial or operational momentum despite overall losses. Sustained top-line and EPS progression over months can validate program advances or better cost absorption, strengthening strategic options like partnerships or milestone-based financing.

Equity-funded balance sheet buffer

A relatively high equity ratio gives OncoTherapy a capital cushion versus peers with heavier leverage, reducing immediate insolvency risk and preserving flexibility. For a cash-burning biotech, equity strength supports R&D continuity and bargaining power in licensing or fundraising over the medium term.

Negative Factors

Persistent negative cash flow

The company reports sustained negative operating and free cash flows and dependence on financing to sustain operations. Over a 2-6 month horizon this raises runway and dilution risk, constrains strategic flexibility, and makes execution contingent on external capital markets or deal-driven financing.

Structural unprofitability

Consistent negative gross, net and operating margins point to structural unprofitability rather than temporary weakness. Without clear margin inflection from commercial traction or cost discipline, the company must rely on recurring external funding, increasing long-term execution risk for its clinical and development programs.

Eroding equity & meaningful liabilities

A trend of declining total assets and stockholders' equity combined with meaningful liabilities indicates capital erosion and limited financial headroom. This reduces resilience to shocks, heightens refinancing risk, and may limit the company's ability to invest in R&D or pursue M&A without dilutive or costly financing.

OncoTherapy Science Business Overview & Revenue Model

Company Description

OncoTherapy Science, Inc. researches and develops anti-cancer medicines and therapies in Japan. Its clinical development product pipeline includes small-molecule drugs, such as OTS167, a maternal embryonic leucine zipper kinase inhibitor that is in Phase I/II clinical trials for the treatment of acute myeloid leukemia, as well as in Phase I clinical trials for the treatment of breast cancer; and OTS964, a T-LAK cell-originated protein kinase inhibitor for the treatment of various cancer diseases. The company's clinical development product pipeline also comprise cancer- specific peptide vaccines, including S-588410, which is in Phase III clinical trials for the treatment esophageal cancer, as well as in Phase II clinical trials for the treatment of bladder cancer; S-488210 that is in Phase I/II clinical trials for the treatment of head and neck cancer; and S-588210, which is in Phase I clinical trials for the treatment of solid tumor. In addition, it is developing antibody drugs consisting of OTSA101, which is in Phase I clinical trials for synovial sarcoma; and KHK6640, an anti-amyloid beta peptide antibody that is Phase I clinical trials for Alzheimer's disease. Further, the company provides contract analysis services. OncoTherapy Science, Inc. was founded in 2001 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

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OncoTherapy Science Financial Statement Overview

Summary

Income statement and cash flow are weak (persistent losses, negative margins, and negative operating/free cash flow with reliance on financing). The balance sheet provides some offset with a relatively high equity ratio, but declining assets/equity and meaningful liabilities keep overall financial strength low.

Income Statement

The company has experienced significant challenges in profitability, with consistently negative net and gross profit margins. Revenue growth is erratic, with fluctuations in revenue suggesting instability. EBIT and EBITDA margins have been consistently negative, indicating operational inefficiencies. Overall, the income statement reflects a struggling financial performance, typical in high-risk biotech ventures.

Balance Sheet

The balance sheet shows a relatively high equity ratio, supported by substantial stockholders' equity compared to total assets. However, the company carries significant liabilities, resulting in a moderate debt-to-equity ratio. The consistent decline in total assets and stockholders' equity over the years indicates potential risk. The company's ability to manage liabilities is crucial, given its negative equity growth trend.

Cash Flow

The cash flow statements reveal persistent negative free cash flow and operating cash flow, which are concerning for future liquidity. The company has relied heavily on financing activities to sustain operations, indicating potential challenges in sustaining cash flows from core operations. There is a lack of positive cash flow generation, which poses a risk to financial stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	851.24M	750.05M	610.12M	1.13B	1.15B	332.48M
Gross Profit	164.71M	-12.76M	-177.72M	41.69M	113.91M	19.54M
EBITDA	-842.06M	-811.92M	-1.29B	-1.09B	-2.04B	-1.59B
Net Income	-827.42M	-815.28M	-1.29B	-1.12B	-2.57B	-1.56B
Balance Sheet
Total Assets	1.53B	1.16B	867.27M	1.51B	2.69B	3.37B
Cash, Cash Equivalents and Short-Term Investments	1.23B	833.88M	527.66M	1.12B	1.84B	2.90B
Total Debt	37.14M	51.07M	106.85M	0.00	0.00	0.00
Total Liabilities	449.62M	426.09M	513.61M	656.27M	704.97M	291.28M
Stockholders Equity	1.08B	729.11M	353.67M	855.17M	1.98B	3.08B
Cash Flow
Free Cash Flow	0.00	-815.30M	-1.23B	-800.29M	-2.53B	-1.81B
Operating Cash Flow	0.00	-815.02M	-1.23B	-794.90M	-2.07B	-1.76B
Investing Cash Flow	0.00	-279.00K	-33.35M	-20.32M	-467.93M	-52.23M
Financing Cash Flow	0.00	1.12B	671.37M	95.95M	1.48B	0.00

OncoTherapy Science Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4564, the sentiment is Positive. The current price of 21 is below the 20-day moving average (MA) of 21.50, below the 50-day MA of 21.32, and below the 200-day MA of 23.90, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4564.

OncoTherapy Science Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4588	55 Neutral	¥64.36B	-17.30	―	―	-9.04%	13.09%
4579	54 Neutral	¥18.59B	87.60	―	―	9.87%	-24.41%
4565	52 Neutral	¥74.30B	-5.96	-19.31%	―	-1.96%	-64.18%
4571	52 Neutral	¥11.83B	-12.44	-26.70%	―	172.39%	8.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4564	46 Neutral	¥8.06B	-7.89	-63.25%	―	99.87%	40.60%
4587	46 Neutral	¥150.86B	-57.13	-10.16%	―	-62.47%	-134.06%