StemRIM Inc. (4599) AI Stock Analysis

• Market Cap: ¥17.49B
• Dividend Yield: N/A
• Average Volume (3M): 122.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: 11.34%
• Country: JP
• Employees: 44
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -8.49
• Shares Outstanding: 62,681,200
• 10 Day Avg. Volume: 118,910
• 30 Day Avg. Volume: 122,863
• PEG Ratio: 1.85
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.50
• 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: 43 Neutral
• Price Target: ¥249.00 ▼(-2.35% Downside)

The score is mainly weighed down by weak recent financial performance (no revenue, large losses, and ongoing cash burn) and an unfavorable valuation signal (negative P/E with no dividend). Technicals are also soft, with the stock below key longer-term moving averages and negative MACD.

Positive Factors

Patent Secured for NASH Therapy

Securing a patent for NASH therapy positions StemRIM as a leader in addressing unmet medical needs, enhancing its market reputation and potential revenue streams in regenerative medicine.

Phase 2b Enrollment Completion

Progress in clinical trials for Redasemtide indicates advancement in StemRIM's pipeline, potentially leading to new treatments and market opportunities in regenerative medicine.

Strong R&D Funding

Secured funding for R&D through 2028 demonstrates financial stability and commitment to long-term innovation, supporting the company's strategic goals in regenerative medicine.

Negative Factors

Zero Revenue

The lack of revenue and significant losses highlight a heavy cost base without offsetting income, raising concerns about the company's ability to achieve financial sustainability.

Cash Flow Volatility

Volatile cash flow with recent significant burn increases dependence on reserves or future funding, posing risks to financial stability and operational continuity.

Equity Decline

The decline in equity reflects ongoing losses and value dilution risk, potentially impacting investor confidence and the company's ability to raise future capital.

StemRIM Inc. Business Overview & Revenue Model

Company Description

StemRIM, a biotechnology company, develops regeneration medicines for the treatment of intractable diseases. It develops PJ1, a regeneration induction medicine HMGB1 peptides, which is in Phase II clinical trials for the treatment of epidermolysis bullosa, cerebral infarction, osteoarthritis, and chronic liver disease, as well as cardiomyopathy; PJ2, a regeneration-inducing medicine novel peptides A and B; PJ3, a biologic regeneration-inducing protein; PJ4, an autologous cell sampling device for medical treatment; and PJ5, a stem cell gene therapy. StemRIM was incorporated in 2006 and is based in Ibaraki, Japan.

How the Company Makes Money

StemRIM Inc. generates revenue primarily through the development and commercialization of regenerative medicine therapies. This includes income from licensing agreements, research collaborations, and potential partnerships with pharmaceutical companies and research institutions. The company may also receive funding from grants and government research initiatives aimed at advancing regenerative medicine. Additionally, as its therapies advance through clinical trials, StemRIM could earn revenue from milestone payments and eventual product sales upon regulatory approval.

StemRIM Inc. Financial Statement Overview

Summary

StemRIM Inc. faces significant financial challenges, evidenced by its declining revenue, persistent net losses, and negative cash flows. Despite a solid equity base and low leverage, the company's current financial trajectory is concerning. The biotech sector's inherent risks, coupled with the company's operational inefficiencies, underscore the need for strategic shifts to stabilize and grow revenue streams sustainably.

Income Statement

StemRIM Inc.'s income statement reflects significant volatility in revenue and profitability. There is a marked revenue collapse from 2.35 billion JPY in 2023 to zero in 2024, accompanied by substantial net losses over the years. The gross and net profit margins are negative, indicating high operational costs relative to revenue. The EBIT and EBITDA margins are also negative, further reflecting operational inefficiencies. Overall, the company's profitability is weak, and the recent revenue drop raises concerns about its growth potential.

Balance Sheet

The balance sheet of StemRIM Inc. shows a strong equity base with a high equity ratio due to minimal debt, resulting in a low debt-to-equity ratio. This financial structure suggests low leverage risk. However, the consistent net losses have impacted the company's return on equity, which remains negative. The high cash reserves provide liquidity, but the declining asset base could be a concern if not addressed through revenue growth.

Cash Flow

The cash flow statement indicates a challenging cash flow situation with negative operating and free cash flows in 2024, highlighting cash burn issues. The free cash flow growth rate is negative, and the ratios of operating and free cash flow to net income are weak due to ongoing losses. This situation suggests potential difficulties in sustaining operations without external financing if the revenue situation does not improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	2.35B	22.98M	1.40B
Gross Profit	-49.50M	-49.50M	-44.35M	2.35B	22.98M	1.40B
EBITDA	-1.89B	-1.88B	-2.03B	218.05M	-1.90B	-532.23M
Net Income	-1.93B	-1.93B	-2.02B	168.35M	-1.95B	-582.45M
Balance Sheet
Total Assets	7.52B	7.52B	9.08B	10.71B	9.60B	10.91B
Cash, Cash Equivalents and Short-Term Investments	6.99B	6.99B	8.41B	10.22B	8.88B	10.17B
Total Debt	0.00	0.00	0.00	531.00K	3.67M	9.73M
Total Liabilities	204.43M	204.43M	185.88M	336.02M	192.43M	212.64M
Stockholders Equity	7.31B	7.31B	8.89B	10.37B	9.40B	10.70B
Cash Flow
Free Cash Flow	0.00	-1.46B	-1.88B	1.13B	-1.40B	-609.23M
Operating Cash Flow	0.00	-1.41B	-1.88B	1.14B	-1.40B	-519.65M
Investing Cash Flow	0.00	-42.50M	-4.78M	-344.00K	-330.00K	-92.72M
Financing Cash Flow	0.00	41.25M	78.97M	202.60M	112.86M	109.32M

StemRIM Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 255.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4599, the sentiment is Neutral. The current price of 255 is below the 20-day moving average (MA) of 263.80, below the 50-day MA of 268.12, and below the 200-day MA of 298.07, indicating a neutral trend. The MACD of 3.23 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 68.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4599.

StemRIM Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7096	56 Neutral	¥8.54B	42.69	―	―	2.99%	-52.75%
7774	54 Neutral	¥22.01B	-54.84	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4978	49 Neutral	¥14.12B	-50.65	―	―	1.24%	-33.41%
7776	47 Neutral	¥10.06B	-9.53	―	―	-42.49%	-2.37%
4889	46 Neutral	¥20.27B	561.01	―	―	-32.68%	―
4599	43 Neutral	¥17.49B	-9.14	―	―	―	11.34%

StemRIM Inc. Corporate Events

StemRIM Completes Global Phase 2b Enrollment for Stroke Drug Redasemtide

StemRIM Inc. announced that partner Shionogi & Co. has completed patient enrollment in a global Phase 2b clinical trial of Redasemtide (S‑005151), a peptide drug derived from StemRIM’s “Regeneration-Inducing Medicine” platform, for adults with acute ischemic stroke treated within 25 hours of onset. The trial, conducted across 18 countries including Japan, the U.S. and European states, is evaluating the efficacy and safety of Redasemtide versus placebo—with or without endovascular recanalization—using the 90-day modified Rankin Scale as the primary endpoint; the company noted the program is progressing as planned and is not expected to affect full-year earnings for the fiscal year ending July 2026, underscoring steady advancement of its lead regenerative therapeutic without near-term financial disruption.

StemRIM Secures Patent for Innovative Fatty Liver and NASH Therapy in Japan

StemRIM Inc. has announced the upcoming registration of a medical use patent for Redasemtide, its flagship regeneration-inducing drug candidate, specifically for treating fatty liver and non-alcoholic steatohepatitis (NASH) in Japan. With no existing drug treatments for these rising lifestyle-related conditions, this move could position StemRIM as a leader in addressing unmet medical needs while bolstering its market reputation within regenerative medicine.

StemRIM Inc. Reports Q3 2025 Financial Results Amid Ongoing R&D Investments

StemRIM Inc. reported its financial results for the three months ending October 31, 2025, showing a net loss, with no operating revenue recorded. The company continues to focus on the development of its regenerative medicine products, including Redasemtide, and anticipates significant cash outflows for research and development. Despite the financial challenges, StemRIM has secured sufficient funds for its R&D activities through 2028, indicating a strong commitment to its long-term development goals.

StemRIM Completes New Share Issuance for Stock Compensation

StemRIM Inc. has completed the issuance of new shares as restricted stock compensation, totaling 545,000 shares at an issue price of 278 yen per share, amounting to 151,510,000 yen. This strategic move is expected to enhance the company’s operational capabilities and strengthen its position in the biotech industry, potentially benefiting stakeholders by advancing its innovative regenerative medicine products.

StemRIM Inc. Forms Voluntary Compensation Committee to Enhance Governance

StemRIM Inc. has announced the establishment of a voluntary Compensation Committee to enhance transparency and effectiveness in determining the compensation of its directors and executive officers. This move is expected to provide an objective perspective on compensation matters, thereby strengthening the company’s governance structure and potentially improving stakeholder confidence.

StemRIM Inc. Unveils Revolutionary Regenerative Medicine Plan

StemRIM Inc. has announced its business plan centered around ‘Regeneration-Inducing Medicine,’ which promises to revolutionize the treatment of refractory diseases by harnessing the body’s innate tissue repair capabilities. This development could significantly impact the biotech industry by offering new therapeutic options and improving patient outcomes globally.

StemRIM Inc. Issues New Shares for Restricted Stock Remuneration

StemRIM Inc. has announced the issuance of new shares as remuneration for restricted stock, amounting to 545,000 ordinary shares at 278 yen per share, totaling 151,510,000 yen. This move is part of a Restricted Stock Grant System aimed at enhancing the company’s long-term corporate value and aligning the interests of its directors and auditors with shareholders by sharing both the benefits and risks of stock price fluctuations.

StemRIM Secures Patent for Innovative Gene Therapy Targeting Skin Disorder

StemRIM Inc. has announced the patent registration for its stem cell gene therapy technology, SR-GT1, aimed at treating dystrophic epidermolysis bullosa, a genetic skin disorder. This innovative approach involves modifying mesenchymal stem cells to produce type VII collagen, potentially offering a curative treatment. While the financial impact for the fiscal year ending July 31, 2026, is minimal, the company is preparing for clinical trials, marking a significant step in regenerative medicine.