StemRIM Inc. (4599) AI Stock Analysis

• Market Cap: ¥17.61B
• Dividend Yield: N/A
• Average Volume (3M): 122.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• 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: ¥280.00 ▲(9.80% Upside)

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

Low debt / conservative balance sheet

Essentially no debt materially reduces financial risk and interest obligations, giving management flexibility to fund R&D or operations without immediate leverage. This durable structural strength lengthens optionality and negotiating power for future partnerships or financings.

Documented cash generation in prior year

Strong cash generation in 2023 demonstrates the business and programs can produce meaningful operating inflows when milestones or revenue events occur. This indicates the company has the structural capability to return to positive cash generation if execution or partnering resumes.

Lean headcount supports cost flexibility

A small workforce implies a lean fixed-cost base and greater operational flexibility, allowing management to scale R&D spend or cut overhead more rapidly than larger peers. This structural agility helps extend runway during funding gaps and adapt program priorities over months.

Negative Factors

No revenue and large losses recently

Zero revenue across 2024–2025 combined with material operating and net losses shows the company has not commercialized or secured offsetting partner income. Persisting without revenue undermines margin sustainability and heightens the need for recurring external funding to sustain operations.

Volatile and negative recent cash generation

Cash flows swung from strong inflows in 2023 to material outflows in 2024–2025, reflecting high volatility in funding and operations. This pattern shortens runway absent new capital and increases reliance on external financings, raising dilution and execution risk over the medium term.

Equity decline and negative ROE

Meaningful equity erosion and repeated negative ROE signal shareholder value destruction from ongoing losses. Persistent dilution or capital depletion can constrain future fundraising capacity, weaken investor confidence, and impair the company’s ability to execute strategic programs over coming quarters.

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

Financials are pressured by zero revenue in 2024–2025 with very large operating/net losses and significant cash burn, despite a low-debt balance sheet. While the company has shown occasional strong years (notably 2023), the recent trend points to weakened sustainability and higher financing risk.

Income Statement

Profitability has been highly volatile and recently weak. After a profitable 2020 and 2023 (including a sharp revenue jump in 2023), the company reported zero revenue in 2024 and 2025 with very large operating and net losses, indicating a heavy cost base without offsetting commercial/partner income. Margins are not meaningful in the last two years due to the lack of revenue, and the earnings trajectory has turned decisively negative again.

Balance Sheet

The balance sheet is conservatively financed with essentially no debt across the period, which reduces financial risk. However, equity has declined meaningfully from 2021 to 2025, consistent with ongoing losses and cash burn. Returns on equity are negative in 2022, 2024, and 2025, reflecting value dilution risk if losses persist.

Cash Flow

Cash generation is inconsistent: operating and free cash flow were positive in 2020 and strongly positive in 2023, but turned materially negative in 2021, 2022, 2024, and 2025. The last two years show significant cash burn, broadly tracking net losses, which increases dependence on existing cash reserves or future funding. The sharp swing from 2023 inflows to 2024–2025 outflows highlights elevated volatility in funding/cash timing.

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: Negative
• Last Price: 255.00
• 50DMA: Positive
• 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:4599, the sentiment is Negative. The current price of 255 is below the 20-day moving average (MA) of 288.80, below the 50-day MA of 272.44, and below the 200-day MA of 297.26, indicating a neutral trend. The MACD of 4.56 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 5.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4599.

StemRIM Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4978	59 Neutral	¥15.07B	-54.05	―	―	1.24%	-33.41%
7774	57 Neutral	¥21.85B	-47.35	―	―	-5.65%	-469.19%
7096	56 Neutral	¥8.54B	42.69	―	―	2.99%	-52.75%
7776	52 Neutral	¥11.02B	-10.03	―	―	-42.49%	-2.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4889	46 Neutral	¥19.28B	533.51	―	―	-32.68%	―
4599	43 Neutral	¥17.61B	-9.21	―	―	―	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.