RaQualia Pharma Inc. (4579) AI Stock Analysis

• Market Cap: ¥24.58B
• Dividend Yield: N/A
• Average Volume (3M): 352.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 9.87%
• EPS Growth: -24.41%
• Country: JP
• Employees: 64
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -8.80
• Shares Outstanding: 24,458,673
• 10 Day Avg. Volume: 795,170
• 30 Day Avg. Volume: 352,926
• PEG Ratio: -0.32
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 2.67
• P/FCF Ratio: 98.67
• 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: 50 Neutral
• Price Target: ¥1,162.00 ▲(15.05% Upside)

The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and negative operating cash flow). Technicals are comparatively better with a generally positive longer-term trend and neutral momentum, but valuation is constrained by a negative P/E and no provided dividend yield.

Positive Factors

Licensing-driven business model

A licensing and collaboration model lets RaQualia monetize R&D without bearing full late‑stage development and commercialization costs. That durable structure can provide non-dilutive upfronts, milestone and royalty streams, reduce funding needs, and align incentives with larger partners over multi-year programs.

Moderate leverage and equity base

A debt-to-equity around 0.51 and a relatively healthy equity ratio indicate balanced capitalization. This creates financial flexibility to fund near-term R&D or partnerships, allows access to debt without extreme strain, and supports multiyear development programs without immediate solvency pressure.

Gross margin strength

A strong gross profit margin signals favorable product or program economics and cost structure at the direct production level. If RaQualia can grow partnered or retained product sales, this gross-margin base supports long-term operating leverage and potential profitability once operating expenses are controlled.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow and negative FCF-to-income show the company struggles to convert activities into cash. Over months this raises funding risk for ongoing trials, forces reliance on partners or capital markets, and constrains independent advancement of higher‑cost clinical programs.

Declining revenue and operating losses

A decline in trailing revenue combined with negative EBIT and net margins points to structural commercial or pipeline monetization challenges. Sustained revenue contraction and losses limit reinvestment capacity, weaken bargaining power in partnerships, and may necessitate recurring external financing.

High development and clinical-stage risk

A business centered on preclinical and clinical R&D carries long timelines, binary trial outcomes, and high cash burn. Success depends on positive clinical readouts or partner deals; failures or delays can materially impair value and require new financing, making performance sensitive to program outcomes over months.

RaQualia Pharma Inc. Business Overview & Revenue Model

Company Description

RaQualia Pharma Inc. engages in the research and development of pharmaceutical compounds worldwide. Its human products portfolio includes tegoprazan for gastroesophageal reflux disease, which is in phase 1 clinical trial in the United States; and grapiprant for pain management, which is in phase II clinical trial in the United States and phase I clinical trial in China, as well as in phase I clinical trial in China and the United States to treat cancer. The company also provides veterinary products such as, grapiprant for osteoarthritis in dogs; ghrelin receptor agonist to treat cancer-related anorexia/cachexia syndrome, and constipation resulting from spinal cord injury; and ELURA, a drug for the management of weight loss in cats with chronic kidney disease. In addition, it provides TRPM8 blocker for the target indication of neuropathic pain; motilin receptor agonist to treat gastrointestinal dysmotility, including gastroparesis, functional dyspepsia, and post-operative ileus; potassium-competitive acid blocker to treat gastro-esophageal reflux disease that has completed phase 1 clinical trial; 5-HT4 partial agonist to treat gastroparesis, functional dyspepsia, and chronic constipation; 5-HT2B antagonist to treat irritable bowel syndrome with diarrhea; EP4 antagonist, a pain management drugs for dogs; serotonin 5-HT2A and dopamine D2 receptor blocker to treat schizophrenia; EP4 antagonist to treat cancer that is in phase I clinical trial, as well as in phase 1 clinical trial for the indication of pain; Cyclooxygenase-2 inhibitor, Phase I clinical trials for the indication of pain; CB2 agonist; selective sodium channel blocker; P2X7 receptor antagonist, which is in Phase I clinical trials for the target indication of neuropathic pain; and retinoic acid receptor alpha agonist. It has a collaborative agreement with Interprotein Corporation, ASKA Pharmaceutical. Co., Ltd., and Epigeneron, Inc. The company was incorporated in 2008 and is headquartered in Nagoya, Japan.

How the Company Makes Money

RaQualia Pharma Inc. generates revenue through a combination of product sales, licensing agreements, and partnerships with larger pharmaceutical companies. The company markets its proprietary drugs directly or through collaborations, receiving royalties on sales from licensed products. Additionally, strategic partnerships and collaborations with research institutions and other biotech firms provide funding and resources for drug development, contributing to revenue through milestone payments and profit-sharing arrangements. The company's ability to innovate and bring new therapies to market is crucial for sustaining its earnings.

RaQualia Pharma Inc. Financial Statement Overview

Summary

Income statement and cash flow are weak: revenue declined (-5.67% TTM) and profitability is negative (net profit and EBIT margins). Cash flow quality is also pressured with negative operating cash flow and weak cash conversion, partially offset by moderate leverage on the balance sheet (debt-to-equity 0.51) and a relatively healthy equity ratio.

Income Statement

RaQualia Pharma Inc. has experienced a decline in revenue over the TTM, with a negative revenue growth rate of -5.67%. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. Despite a strong gross profit margin, the overall profitability is hindered by high operating expenses.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.51, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio is relatively healthy, suggesting a stable asset base.

Cash Flow

RaQualia Pharma Inc. shows a significant increase in free cash flow growth, but the operating cash flow remains negative, indicating cash management challenges. The free cash flow to net income ratio is negative, highlighting the company's struggle to convert earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	3.11B	1.90B	2.92B	2.78B	1.11B
Gross Profit	2.07B	2.48B	1.66B	2.69B	2.46B	969.29M
EBITDA	-17.24M	188.27M	-111.80M	1.00B	1.02B	-403.25M
Net Income	-724.12M	-495.03M	-323.66M	723.39M	755.79M	-606.99M
Balance Sheet
Total Assets	9.52B	9.66B	6.87B	6.26B	5.23B	4.25B
Cash, Cash Equivalents and Short-Term Investments	3.54B	3.34B	3.76B	3.93B	2.66B	2.11B
Total Debt	3.05B	3.45B	367.72M	222.34M	39.07M	45.52M
Total Liabilities	3.48B	4.08B	752.00M	760.67M	446.19M	240.11M
Stockholders Equity	6.04B	5.57B	6.12B	5.50B	4.79B	4.01B
Cash Flow
Free Cash Flow	-286.19M	84.24M	-940.80M	1.45B	260.61M	-445.56M
Operating Cash Flow	-222.86M	180.94M	-718.60M	1.48B	366.03M	-289.21M
Investing Cash Flow	328.55M	-3.67B	-135.37M	-47.65M	-279.25M	225.47M
Financing Cash Flow	461.25M	2.98B	793.45M	-29.56M	-16.44M	-6.96M

RaQualia Pharma Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1010.00
• 50DMA: Negative
• 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 JP:4579, the sentiment is Neutral. The current price of 1010 is below the 20-day moving average (MA) of 1045.20, below the 50-day MA of 1076.82, and above the 200-day MA of 679.00, indicating a neutral trend. The MACD of -6.25 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4579.

RaQualia Pharma Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4888	59 Neutral	¥11.33B	-62.00	―	―	248.15%	76.92%
4978	59 Neutral	¥15.07B	-55.41	―	―	1.24%	-33.41%
4880	57 Neutral	¥7.97B	747.21	―	1.24%	-14.78%	-95.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4579	50 Neutral	¥24.58B	-31.84	―	―	9.87%	-24.41%
4588	50 Neutral	¥49.97B	-21.62	―	―	-9.04%	13.09%
4599	43 Neutral	¥17.61B	-9.70	―	―	―	11.34%

RaQualia Pharma Inc. Corporate Events

RaQualia Pharma Reports Financial Results for First Nine Months of 2025

RaQualia Pharma Inc. reported a decrease in net sales by 2.5% for the first nine months of 2025 compared to the same period in 2024, with a net loss of 568 million yen. Despite the decline in sales and profitability, the company maintained a strong equity ratio of 63.0% as of September 2025, indicating a stable financial position. The company has not announced any changes to its dividend forecasts, and it plans to hold a financial results briefing via webcast, reflecting its commitment to transparency with stakeholders.

The most recent analyst rating on (JP:4579) stock is a Hold with a Yen545.00 price target. To see the full list of analyst forecasts on RaQualia Pharma Inc. stock, see the JP:4579 Stock Forecast page.