D.Western Therapeutics Institute (4576) AI Stock Analysis

• Market Cap: ¥5.47B
• Dividend Yield: N/A
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -9.24%
• EPS Growth: 20.21%
• Country: JP
• Employees: 21
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.67
• Shares Outstanding: 54,201,714
• 10 Day Avg. Volume: 644,890
• 30 Day Avg. Volume: 2,358,930
• PEG Ratio: -0.13
• Price to Book (P/B): 9.62
• Price to Sales (P/S): 14.97
• P/FCF Ratio: -5.40
• 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: 41 Neutral
• Price Target: ¥98.00 ▼(-6.67% Downside)

D.Western Therapeutics Institute, Inc. faces significant financial and technical challenges. The company's financial performance is the most concerning factor, with ongoing losses and cash flow issues. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to a negative P/E ratio. These factors collectively result in a low overall stock score.

D.Western Therapeutics Institute Business Overview & Revenue Model

Company Description

D.Western Therapeutics Institute (4576) is a biotechnology company focused on developing innovative therapeutic solutions for various medical conditions. Operating primarily in the healthcare sector, the company specializes in research and development of biologics and small-molecule drugs aimed at treating chronic diseases, particularly in oncology and autoimmune disorders. With a commitment to advancing science and improving patient outcomes, D.Western Therapeutics Institute leverages cutting-edge technology and extensive clinical research to create effective treatment options.

How the Company Makes Money

D.Western Therapeutics Institute generates revenue primarily through the commercialization of its pharmaceutical products, which includes both direct sales and licensing agreements. The company has established key partnerships with larger pharmaceutical firms that provide upfront payments, milestone payments tied to development progress, and royalties on future sales of approved drugs. Additionally, D.Western Therapeutics Institute may receive funding through government or private grants aimed at supporting innovative research projects, further contributing to its financial stability.

D.Western Therapeutics Institute Financial Statement Overview

Summary

The company is facing significant financial challenges. Despite a strong gross profit margin, ongoing losses and cash flow issues raise concerns about the company's ability to sustain operations without external financing. The balance sheet remains relatively stable, but negative returns and cash flow highlight the need for strategic adjustments to improve profitability and liquidity.

Income Statement

The company's income statement reveals significant challenges. The gross profit margin remains healthy, but both EBIT and net profit margins are negative, reflecting substantial operating losses. Revenue growth has been inconsistent, with a decline in recent years, indicating potential market or operational difficulties.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio is reasonable, suggesting controlled leverage. However, the return on equity is negative due to persistent net losses. The equity ratio is satisfactory, indicating a stable asset base relative to liabilities.

Cash Flow

Cash flow analysis highlights severe issues, with negative operating and free cash flows indicating cash burn and potential liquidity concerns. The free cash flow to net income ratio is unfavorable, underlining inefficiencies in converting profits into cash. Financing activities have been used to supplement operations, which may not be sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	421.06M	471.58M	428.36M	448.10M	414.42M	355.59M
Gross Profit	363.02M	424.74M	391.70M	420.53M	394.32M	338.57M
EBITDA	-1.03B	-1.23B	-775.59M	-390.75M	-110.03M	-240.64M
Net Income	-1.09B	-1.29B	-812.41M	-429.69M	-149.00M	-276.10M
Balance Sheet
Total Assets	1.51B	1.67B	2.37B	2.96B	2.46B	2.74B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.13B	1.87B	2.33B	1.93B	2.31B
Total Debt	517.95M	797.98M	885.12M	967.69M	340.00M	460.00M
Total Liabilities	628.89M	935.58M	1.09B	1.08B	427.72M	573.81M
Stockholders Equity	884.57M	733.87M	1.28B	1.86B	2.01B	2.16B
Cash Flow
Free Cash Flow	0.00	-1.31B	-601.76M	-364.58M	-179.21M	-221.41M
Operating Cash Flow	0.00	-1.30B	-586.82M	-354.77M	-176.31M	-216.28M
Investing Cash Flow	0.00	-10.01M	-15.25M	-139.89M	-111.15M	-13.46M
Financing Cash Flow	0.00	567.63M	134.47M	867.30M	-104.46M	1.00B

D.Western Therapeutics Institute Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4576, the sentiment is Negative. The current price of 105 is below the 20-day moving average (MA) of 105.15, below the 50-day MA of 109.26, and below the 200-day MA of 116.59, indicating a bearish trend. The MACD of -2.24 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4576.

D.Western Therapeutics Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4570	70 Outperform	¥4.41B	17.03	―	―	9.47%	14.00%
4884	54 Neutral	¥3.05B	―	―	―	-8.56%	-7.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4576	41 Neutral	¥5.47B	―	-131.16%	―	-9.24%	20.21%
4564	40 Neutral	€8.13B	-7.95	-63.25%	―	99.87%	40.60%
4881	38 Underperform	¥3.73B	-2.19	―	―	965.85%	-42.78%
4598	28 Underperform	¥6.04B	―	―	―	―	20.41%

D.Western Therapeutics Institute Corporate Events

D. Western Therapeutics Institute Reports Breakthrough in Dry Eye Treatment Research

D. Western Therapeutics Institute, Inc. has announced positive results from its joint research with DKS Co. Ltd. on developing a treatment for dry eye. This collaboration, which began in December 2024, leverages DKS’s drug discovery technology and DWTI’s ophthalmology-specific evaluation technologies. The successful results in animal models have led to an extension of the research agreement, with both companies managing the resulting intellectual property jointly. While the immediate financial forecasts remain unchanged, this development is expected to expand DWTI’s ophthalmology pipeline in the medium to long term, thereby enhancing its market position and improving quality of life through evidence-based initiatives.

The most recent analyst rating on (JP:4576) stock is a Hold with a Yen110.00 price target. To see the full list of analyst forecasts on D.Western Therapeutics Institute stock, see the JP:4576 Stock Forecast page.

D. Western Therapeutics Gains FDA Approval for Bondlido Patch

D. Western Therapeutics Institute, Inc. has received FDA approval for its new product, Bondlido, a lidocaine patch developed with MEDRx for treating post-herpetic neuralgia in adults. The product is expected to launch in the US in the first half of 2026, potentially improving the company’s earnings over the medium to long term by offering a superior alternative to existing products in the $162 million US lidocaine patch market.

The most recent analyst rating on (JP:4576) stock is a Sell with a Yen102.00 price target. To see the full list of analyst forecasts on D.Western Therapeutics Institute stock, see the JP:4576 Stock Forecast page.

FDA Conditionally Approves New Name for D.Western’s Lidocaine Patch

D.Western Therapeutics Institute announced that the FDA has conditionally accepted the new proprietary name ‘Bondlido’ for their lidocaine patch DW-5LBT, which they are developing with the MEDRx Group. This change was necessitated by the FDA’s request due to potential confusion with an existing product name. The new name will be officially approved upon the successful approval of the New Drug Application. The change is not expected to impact the company’s financial forecast for the fiscal year ending December 31, 2025.

The most recent analyst rating on (JP:4576) stock is a Sell with a Yen102.00 price target. To see the full list of analyst forecasts on D.Western Therapeutics Institute stock, see the JP:4576 Stock Forecast page.

D.Western Therapeutics Institute Reports Decline in H1 2025 Financials

D.Western Therapeutics Institute reported a decrease in net sales and a continued loss in operating and ordinary profit for the first half of 2025. The financial results indicate a challenging period for the company, with implications for its market positioning and potential concerns for stakeholders regarding its financial health.