Modalis Therapeutics Corporation (4883) AI Stock Analysis

• Market Cap: ¥5.29B
• Dividend Yield: N/A
• Average Volume (3M): 719.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: N/A
• EPS Growth: 47.43%
• Country: JP
• Employees: 14
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -10.13
• Shares Outstanding: 86,674,095
• 10 Day Avg. Volume: 617,120
• 30 Day Avg. Volume: 719,680
• PEG Ratio: 0.06
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.29
• 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: 42 Neutral
• Price Target: ¥54.00 ▼(-3.57% Downside)

The score is driven mainly by weak financial performance (near-zero recent revenue, sustained losses, and ongoing cash burn). Technicals add pressure with the stock trading below key moving averages and negative momentum. Valuation is also constrained by a negative P/E and no dividend support, while a relatively clean balance sheet provides only a limited offset.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to focus resources on R&D and strategic initiatives.

Employee Incentive Plan

The incentive plan aligns employee interests with shareholder value, potentially improving employee performance and retention, which is crucial for innovation-driven biotech firms.

Strategic Leadership Appointments

New leadership in neuromuscular diseases and manufacturing could enhance operational efficiency and market position, supporting long-term growth.

Negative Factors

Sustained Losses

Ongoing losses and cash burn threaten financial stability and may hinder the company's ability to invest in growth opportunities.

Revenue Decline

The sharp decline in revenue reflects challenges in monetizing R&D efforts, which could impact long-term viability if not addressed.

Weak Financial Position

A weakened financial position limits the company's ability to weather economic challenges and invest in strategic initiatives, posing risks to future growth.

Modalis Therapeutics Corporation Business Overview & Revenue Model

Company Description

Modalis Therapeutics Corporation engages in the research and development of therapeutics to treat patients with serious genetic disorders. It is developing therapies for genetic diseases using its proprietary CRISPR-GNDM technology that enables to control gene expressions through modulating the switch (epigenetics of a specific locus. The company has a. joint research agreement with JCR Pharmaceuticals Co., Ltd. to evaluate the drug delivery technology of the gene therapy to the central nervous system (CNS) assuming CNS diseases as a target. The company was formerly known as EdiGENE Corporation and changed its name to Modalis Therapeutics Corporation in August 2019. Modalis Therapeutics Corporation was founded in 2016 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Modalis Therapeutics Corporation generates revenue through a combination of strategic partnerships, research collaborations, and licensing agreements. The company partners with pharmaceutical and biotechnology firms to co-develop gene therapies, sharing both the costs and potential profits. Additionally, Modalis may receive upfront payments, milestone payments, and royalties from its partners based on the development progress and commercial success of its therapeutic candidates. The company's revenue model relies heavily on its proprietary CRISPR-GNDM technology platform, which it licenses to other companies seeking to develop gene modulation therapies.

Modalis Therapeutics Corporation Financial Statement Overview

Summary

Modalis Therapeutics Corporation is facing significant financial challenges, with no revenue generation, increasing net losses, and reliance on financing to support cash flow. While the balance sheet remains strong with high equity and no debt, sustainability is a concern without improved revenue and operational performance.

Income Statement

The company has experienced a significant decline in revenue and profitability. Total revenue has dropped from 644 million in 2019 to zero in recent years, indicating a lack of sales. The net income remains negative with increasing losses, reflecting poor profitability and financial performance.

Balance Sheet

The balance sheet shows strong stockholders' equity and no debt, resulting in a solid equity ratio. However, the lack of revenue generation and continuous net losses could impact equity sustainability in the long term, despite the current strong cash position.

Cash Flow

The cash flow statement indicates challenges in generating positive cash flow from operations, leading to negative free cash flow. The reliance on financing activities suggests potential sustainability issues without improving operational performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	40.50M	1.10M	342.00M
Gross Profit	-583.00K	0.00	-731.00K	-83.17M	1.10M	342.00M
EBITDA	-2.33B	-2.15B	-2.37B	-2.58B	-667.55M	-381.96M
Net Income	-1.56B	-1.32B	-2.39B	-2.70B	-738.96M	-448.41M
Balance Sheet
Total Assets	3.42B	3.69B	2.03B	3.13B	6.07B	6.28B
Cash, Cash Equivalents and Short-Term Investments	3.26B	3.58B	1.88B	2.93B	4.94B	5.42B
Total Debt	0.00	0.00	412.50M	0.00	0.00	0.00
Total Liabilities	228.82M	143.47M	645.50M	188.60M	519.92M	70.16M
Stockholders Equity	3.19B	3.55B	1.38B	2.94B	5.55B	6.21B
Cash Flow
Free Cash Flow	0.00	-1.43B	-2.29B	-2.09B	-854.58M	-1.21B
Operating Cash Flow	0.00	-1.43B	-2.25B	-1.90B	-747.47M	-376.57M
Investing Cash Flow	0.00	-188.00K	-39.70M	-185.72M	171.56M	-830.31M
Financing Cash Flow	0.00	3.04B	1.22B	63.68M	72.63M	2.78B

Modalis Therapeutics Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4883, the sentiment is Negative. The current price of 56 is below the 20-day moving average (MA) of 56.70, below the 50-day MA of 63.22, and below the 200-day MA of 78.21, indicating a neutral trend. The MACD of -1.04 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4883.

Modalis Therapeutics Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4539	64 Neutral	¥5.95B	11.86	―	3.21%	4.25%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4892	49 Neutral	¥5.78B	-6.01	―	―	56.17%	-11.63%
4586	44 Neutral	¥7.01B	-4.64	―	―	-52.41%	-80.31%
4597	43 Neutral	¥7.79B	-3.58	-90.96%	―	243.16%	-23.00%
4582	42 Neutral	¥5.41B	-0.96	―	―	-50.27%	-3.33%
4883	42 Neutral	¥5.29B	-2.21	―	―	―	47.43%

Modalis Therapeutics Corporation Corporate Events

Modalis Therapeutics Issues New Shares for Employee Incentive Plan

Modalis Therapeutics Corporation announced the issuance of 300 new shares as part of a restricted-stock-based remuneration plan. This initiative aims to enhance the company’s long-term value and align employee interests with shareholder value. The impact on the company’s share dilution is minimal, and the plan is designed to incentivize employees by offering them a stake in the company’s future success.

Modalis Therapeutics Reports Foreign Exchange Loss

Modalis Therapeutics Corporation announced a non-operating expense due to a foreign exchange loss of 23 million yen for the nine months ending September 30, 2025. This loss resulted from the revaluation of foreign currency-denominated assets and liabilities, reflecting the impact of exchange rate fluctuations on the company’s financials.

Modalis Therapeutics Reports Increased Losses and Decline in Financial Position

Modalis Therapeutics Corporation reported its consolidated financial results for the nine months ending September 30, 2025, showing a significant increase in losses compared to the previous year. The company’s financial position weakened, with a decline in total assets and net assets, while the capital adequacy ratio also decreased. Despite these challenges, the company did not revise its dividend forecast, indicating a cautious approach amidst financial uncertainties.

Modalis Therapeutics Announces Key Executive Appointments

Modalis Therapeutics Corporation has announced a change in its executive team, appointing Dr. Yuanbo Qin as VP of Neuromuscular Diseases and Dr. Seth Levy as VP of Manufacturing. These leadership changes indicate a strategic focus on strengthening its capabilities in neuromuscular disease treatment and manufacturing processes, potentially enhancing its market position and operational efficiency.