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Neurogene (NGNE)
NASDAQ:NGNE
US Market

Neurogene (NGNE) AI Stock Analysis

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Neurogene

(NASDAQ:NGNE)

34Underperform
Neurogene's stock is hindered by poor financial performance and weak technical indicators. Despite some positive corporate developments, including financing and trial progress, the financial and technical weaknesses weigh heavily on the stock's outlook.
Positive Factors
Clinical Performance
Low-dose NGN-401 data look impressive and better than TSHA-102.
Regulatory Approval
The FDA completed a review of the safety data for NGN-401 and allowed Neurogene to proceed with the low-dose level.
Negative Factors
Safety Concerns
Emerging, serious adverse event likely related to high-dose AAV.

Neurogene (NGNE) vs. S&P 500 (SPY)

Neurogene Business Overview & Revenue Model

Company DescriptionNeurogene (NGNE) is a biotechnology company focused on the development of novel gene therapies to address unmet medical needs for patients with rare neurological diseases. The company's mission is to improve patient outcomes through innovative genetic medicine solutions. Neurogene operates in the biopharmaceutical sector, leveraging cutting-edge gene therapy technologies to create transformative therapies that target underlying causes of neurological disorders.
How the Company Makes MoneyNeurogene makes money primarily through the development and commercialization of its gene therapy products. The company generates revenue by advancing its therapies through clinical trials and, upon receiving regulatory approval, bringing these therapies to market. Key revenue streams include partnerships and collaborations with other biopharmaceutical companies, where Neurogene may receive milestone payments, royalties, or licensing fees for its proprietary technologies. Additionally, strategic alliances with research institutions and healthcare organizations can contribute to its earnings through joint development programs and shared resources. Neurogene's financial success depends on its ability to navigate regulatory pathways, achieve clinical milestones, and effectively commercialize its gene therapy products.

Neurogene Financial Statement Overview

Summary
Neurogene faces significant financial challenges with consistent negative profitability and revenue generation issues. The balance sheet shows some cash stability but high liabilities are concerning. Cash flow is negative, heavily relying on unsustainable financing activities.
Income Statement
20
Very Negative
Neurogene has struggled with profitability, evidenced by consistent negative gross profit and net income. Recent TTM data shows a negative revenue growth and substantial net loss, highlighting ongoing financial challenges. The absence of revenue in previous years underscores the company's difficulty in generating sales, which is critical in the pharmaceuticals industry.
Balance Sheet
50
Neutral
The company's balance sheet shows a relatively stable cash position with a significant portion of assets in cash equivalents. However, the debt-to-equity ratio has fluctuated due to negative equity in some years. Recent improvements in equity suggest potential stabilization, but the high total liabilities remain a concern.
Cash Flow
30
Negative
Neurogene's cash flow indicates challenges in generating positive cash flow from operations, with substantial negative free cash flow. The operating cash flow to net income ratio is poor, reflecting inefficiencies in converting net losses into operational cash. Financing activities have been the main source of cash, which may not be sustainable long-term.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
925.00K0.000.000.000.000.00
Gross Profit
-17.54M-3.26M-3.20M-2.28M-1.82M-340.00K
EBIT
-97.61M-55.58M-56.52M-50.53M-41.55M-24.44M
EBITDA
-71.44M-52.29M-51.99M-49.59M-31.46M-69.10M
Net Income Common Stockholders
-71.13M-36.32M-55.19M-50.52M-33.28M-69.44M
Balance SheetCash, Cash Equivalents and Short-Term Investments
142.47M197.16M82.02M70.54M192.56M143.09M
Total Assets
163.26M222.57M109.27M101.49M210.52M147.02M
Total Debt
12.98M16.25M4.69M5.21M12.12M1.21M
Net Debt
-129.48M-131.96M-77.33M-65.33M-180.43M-141.88M
Total Liabilities
20.40M36.55M255.00M193.36M19.30M5.34M
Stockholders Equity
142.86M186.02M-145.74M-91.88M191.22M141.69M
Cash FlowFree Cash Flow
-83.08M-51.74M-55.05M-64.77M-26.79M-16.27M
Operating Cash Flow
-82.62M-51.42M-52.82M-46.40M-24.57M-15.39M
Investing Cash Flow
-5.96M25.64M-2.23M-18.37M-2.22M-688.00K
Financing Cash Flow
86.01M92.48M66.53M51.06M77.14M82.24M

Neurogene Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.80
Price Trends
50DMA
18.14
Negative
100DMA
26.71
Negative
200DMA
32.88
Negative
Market Momentum
MACD
-0.38
Negative
RSI
44.93
Neutral
STOCH
65.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGNE, the sentiment is Negative. The current price of 16.8 is below the 20-day moving average (MA) of 17.22, below the 50-day MA of 18.14, and below the 200-day MA of 32.88, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 65.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NGNE.

Neurogene Risk Analysis

Neurogene disclosed 86 risk factors in its most recent earnings report. Neurogene reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Neurogene Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.73B-31.68%32.29%64.39%
54
Neutral
$3.55B-214.50%29.01%23.93%
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
46
Neutral
$3.63B-19.20%-89.95%-123.71%
45
Neutral
$675.96M-238.46%71.17%23.89%
42
Neutral
$37.60M-270.20%144.50%-141.91%
34
Underperform
$370.71M-66.90%-342.14%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NGNE
Neurogene
16.80
-20.73
-55.24%
FOLD
Amicus
8.81
-2.67
-23.26%
BLUE
Bluebird Bio
3.73
-24.67
-86.87%
RARE
Ultragenyx Pharmaceutical
39.25
-8.12
-17.14%
QURE
uniQure
13.78
8.61
166.54%
CRSP
Crispr Therapeutics AG
41.99
-30.96
-42.44%

Neurogene Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Neurogene Highlights Progress in Rett Syndrome Program
Positive
Jan 13, 2025

Neurogene has updated its corporate presentation, highlighting the progress and future plans for its NGN-401 program for Rett syndrome, which is currently in Phase 1/2 clinical trials. The company is leveraging its proprietary EXACT technology and in-house manufacturing to advance its pipeline and explore market opportunities, positioning itself strategically in the biopharmaceutical sector.

Business Operations and Strategy
Neurogene Adjusts Clinical Trial After Setback
Negative
Nov 21, 2024

Neurogene’s Phase 1/2 clinical trial for Rett syndrome faced a setback as a participant died from complications linked to a high dose of adeno-associated virus (AAV). The FDA has approved continuing the trial with a reduced dose, influencing future trial designs. This development is crucial for stakeholders monitoring advancements in gene therapy trials.

Product-Related AnnouncementsBusiness Operations and Strategy
Neurogene Adjusts NGN-401 Trial After Adverse Event
Negative
Nov 18, 2024

Neurogene Inc. updates its clinical trial for NGN-401 gene therapy targeting Rett syndrome after a serious adverse event in a high-dose participant led to critical conditions. While the FDA allows continuation at a lower dose, further high-dose enrollments are paused. Safety remains a priority as the trial progresses with no other adverse events reported at lower doses, showcasing potential for future treatments of neurological diseases.

Product-Related AnnouncementsBusiness Operations and Strategy
Neurogene Reports Promising Interim Results for NGN-401 Trial
Positive
Nov 12, 2024

Neurogene Inc. has reported promising interim results from its Phase 1/2 trial of NGN-401 gene therapy for Rett syndrome, highlighting improvements in key areas like motor skills and communication among the first four low-dose pediatric participants. The therapy, which has shown a favorable safety profile, marks significant progress as it addresses the core symptoms of this challenging neurodevelopmental disorder. The company plans to continue the trial with an adolescent/adult cohort and anticipates further updates in 2025, potentially paving the way for a commercial launch.

Private Placements and Financing
Neurogene Secures $200M for Genetic Therapy Development
Positive
Nov 4, 2024

Neurogene Inc. has announced a $200 million private placement financing, involving top-tier healthcare funds, to support its innovative genetic therapies for rare neurological diseases. The proceeds are expected to fund the company into the second half of 2027, aiding in the development of its NGN-401 gene therapy for Rett syndrome and other projects. Neurogene aims to maximize the therapeutic impact with its EXACT™ platform, ensuring optimized efficacy and safety in its treatments.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.