Modalis Therapeutics Corporation (4883) AI Stock Analysis

• Market Cap: ¥5.20B
• Dividend Yield: N/A
• Average Volume (3M): 719.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• 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: ¥60.00 ▲(7.14% Upside)

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

Conservative leverage / no debt in 2024

Reported no debt in 2024 and positive equity provide a conservative capital structure that lowers default risk and gives flexibility to fund R&D or negotiate partnerships. A low-leverage base is a durable buffer during prolonged development cycles common in biotech.

Platform approach targeting regulatory genomic regions

A platform focused on modulating gene expression via regulatory genomic regions creates a scalable discovery engine. This can generate multiple programs, attract partnerships, and create intellectual property barriers — structural advantages if scientific validation advances in clinical stages.

2024 cash burn improved versus 2023

2024 cash burn improvement versus 2023 suggests better cost control or milestone-driven progress. If management sustains lower cash consumption, runway extends and near-term financing need eases, giving more time to reach clinical inflection points or secure partnerships without immediate dilution.

Negative Factors

Revenue fell to effectively zero in 2023–2024

Revenue collapsing to effectively zero removes internal funding and indicates no commercialized products. Over the medium term this forces reliance on external capital or partnerships, increasing dilution and reducing strategic flexibility if commercialization visibility remains absent.

Consistent negative operating and free cash flow

Persistent negative operating and free cash flow from 2020–2024 highlights ongoing cash burn to fund development programs. Long-term, sustained negative cash conversion erodes reserves, necessitates frequent financing, and constrains the company’s ability to invest in multiple programs or weather development delays.

Sustained large net losses since 2020

The shift from profitability in 2019 to sustained large losses through 2024 produces negative returns on equity and risks capital erosion. Continued losses weaken bargaining power with partners and investors and raise questions about long-term viability absent clear clinical successes or new funding sources.

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

Income statement and cash flow are very weak: revenue fell to effectively zero in 2023–2024 with sustained large losses and persistent negative operating/free cash flow (ongoing burn). The balance sheet is a partial offset with no debt in 2024 and positive equity, but continued losses risk eroding the capital base.

Income Statement

The business has deteriorated materially from a profitable 2019 to sustained, very large losses from 2020–2024. Revenue fell to effectively zero in 2023–2024 (vs. meaningful revenue in 2019–2020), and losses remain sizable despite some improvement in 2024 versus 2023. Overall, profitability and revenue visibility are weak, consistent with a high-burn development-stage profile.

Balance Sheet

Leverage is conservative overall, with no debt reported in 2024 and a relatively modest debt level in 2023. Equity remains positive and sizable versus total assets, providing a cushion for ongoing investment. The key weakness is persistent negative returns on equity driven by recurring net losses, which can erode the capital base over time.

Cash Flow

Cash generation is a major pressure point: operating cash flow and free cash flow are consistently negative from 2020–2024, indicating ongoing cash burn to fund operations. While 2024 cash burn improved versus 2023, free cash flow remains deeply negative, and cash flows are not yet self-funding.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 61.95, below the 50-day MA of 60.74, and below the 200-day MA of 76.72, indicating a bearish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, 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	¥6.07B	11.12	―	3.21%	4.25%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4892	49 Neutral	¥6.40B	-6.40	―	―	56.17%	-11.63%
4586	44 Neutral	¥6.89B	-4.56	―	―	-52.41%	-80.31%
4597	43 Neutral	¥7.53B	-3.46	-90.96%	―	243.16%	-23.00%
4582	42 Neutral	¥5.12B	-0.90	―	―	-50.27%	-3.33%
4883	42 Neutral	¥5.20B	-2.17	―	―	―	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.