Processa Pharmaceuticals (PCSA) AI Stock Analysis

• Market Cap: $5.23M
• Dividend Yield: N/A
• Average Volume (3M): 57.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: N/A
• EPS Growth: 72.88%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.81
• Shares Outstanding: 2,265,769
• 10 Day Avg. Volume: 29,820
• 30 Day Avg. Volume: 57,721
• PEG Ratio: <0.01
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.24
• Enterprise Value/Market Cap: -0.37
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.15
• 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: 41 Neutral
• Price Target: $2.50 ▲(1983.33% Upside)
• Action: Reiterated Date: 01/07/26
• Date: Action: Reiterated 01/07/26

The score is held down primarily by weak financial performance (no revenue, recurring losses, and ongoing cash burn) and bearish technicals (trading well below major moving averages with negative MACD). Valuation contributes little support due to the negative P/E and lack of dividend yield.

Positive Factors

Oncology-focused clinical-stage pipeline

A focused clinical-stage oncology strategy concentrates resources on a high-value therapeutic area where improving existing chemotherapy agents can create differentiated products. This specialization supports durable scientific expertise, clearer partnership appeal to larger pharma, and a defined commercialization pathway if trials succeed.

Low leverage / zero debt

A debt-free balance sheet materially reduces refinancing and interest-rate risk for a cash-burning clinical-stage biotech. Low leverage preserves flexibility to raise equity or structure partnerships without immediate interest burdens, improving the company's ability to fund clinical programs over the medium term.

Nasdaq listing compliance restored

Regaining NASDAQ compliance removes immediate delisting risk and stabilizes the company's access to public capital markets. That structural resolution preserves liquidity for shareholders, maintains the firm's ability to raise equity or execute market-based financings, and aids credibility with partners.

Negative Factors

Pre-revenue with widening losses

Being pre-revenue with recurring and growing net losses means the company lacks internal operating cash generation and remains dependent on external funding. Persistent losses erode equity and increase the probability of future dilutive financings before any product commercialization can deliver sustainable revenue.

High and worsening cash burn

Substantial negative operating and free cash flow, and rapidly worsening FCF, indicate rising cash consumption to fund R&D and trials. This elevates near-term liquidity risk, pressures management to raise capital or slow programs, and reduces optionality on development timing and partnership negotiations.

Reliance on financing and volatile equity base

A history of sharply changing shareholders' equity highlights recurring capital raises and dilution risk. Dependence on external financing creates execution risk if markets tighten and can constrain long-term strategy, forcing program prioritization and potentially unfavorable deal terms with partners or investors.

Processa Pharmaceuticals Business Overview & Revenue Model

Company Description

Processa Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development of drug products for the treatment of patients with unmet medical needs in the United States. Its lead product candidate is PCS499, an oral tablet that is in Phase 2B clinical trials for the treatment of ulcerative and non-ulcerative necrobiosis lipoidica, a chronic disfiguring condition. The company is also developing PCS12852, a novel selective 5-hydroxytryptamine 4 (5-HT4) receptor agonist that is in Phase 2A clinical trials for the treatment of gastroparesis, chronic constipation, constipation-predominant irritable bowel syndrome, and functional dyspepsia; PCS3117, a cytosine analog, which is in Phase 2B clinical trials for the treatment of pancreatic and non-small cell lung cancer; and PCS6422, an oral, potent, selective, and irreversible inhibitor of dihydropyrimidine dehydrogenase that is in Phase 1B clinical trials for treating metastatic colorectal and breast cancer. In addition, it develops PCS11T, an analog of SN38 and irinotecan drug for the treatment of various cancers. The company was incorporated in 2011 and is based in Hanover, Maryland.

How the Company Makes Money

Processa Pharmaceuticals makes money by advancing its pipeline of drug candidates through clinical trials and regulatory approval processes, eventually leading to commercialization. The company's revenue model is centered around licensing agreements, milestone payments, and potential royalties from successful partnerships with larger pharmaceutical companies. Additionally, Processa may generate income through strategic collaborations and alliances that provide funding for research and development activities, allowing them to bring their drug products to market. The success of their revenue model heavily depends on the clinical advancement and approval of their drug candidates.

Processa Pharmaceuticals Financial Statement Overview

Summary

Early-stage, pre-revenue profile with persistent and widening losses (TTM net loss ~$12.9M) and sustained cash burn (TTM operating/FCF about -$10.7M). The main offset is low leverage/zero debt in TTM, but equity volatility and negative returns highlight ongoing funding risk.

Income Statement

The company remains pre-revenue (zero revenue across the periods provided), with persistent operating losses. Losses widened in TTM (Trailing-Twelve-Months) (net loss of ~$12.9M) versus 2024 (~$11.9M) and 2023 (~$11.1M), although 2022 was an outlier with a materially larger loss. Overall, profitability is weak and visibility depends on future commercialization rather than current operating performance.

Balance Sheet

Leverage is low (TTM total debt at $0; 2024 debt-to-equity ~0.04), which reduces financial risk from interest and refinancing. However, the equity base has been volatile and materially lower than prior years (equity fell from ~$25.5M in 2021 to ~$1.7M in 2024, then improved to ~$5.8M in TTM), and returns on equity are deeply negative given ongoing losses. The balance sheet is not highly levered, but it is pressured by continued deficit spending.

Cash Flow

Cash generation is consistently negative, with operating cash flow and free cash flow both at about -$10.7M in TTM (Trailing-Twelve-Months). Free cash flow deterioration versus 2024 is notable (TTM free cash flow growth ~-112%), indicating a higher cash burn rate recently. Free cash flow roughly matches net losses (free cash flow to net income ~1x), suggesting losses translate directly into cash outflow rather than being driven by non-cash charges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	-882.06K
EBITDA	-12.97M	-12.05M	-11.46M	-19.47M	-10.78M	-14.25M
Net Income	-12.93M	-11.85M	-11.12M	-27.42M	-11.43M	-19.04M
Balance Sheet
Total Assets	7.58M	3.23M	5.79M	8.62M	26.46M	25.21M
Cash, Cash Equivalents and Short-Term Investments	6.31M	1.19M	4.71M	6.50M	16.50M	15.42M
Total Debt	0.00	73.51K	150.55K	229.45K	78.46K	328.12K
Total Liabilities	1.75M	1.53M	797.48K	1.15M	978.40K	2.27M
Stockholders Equity	5.83M	1.70M	4.99M	7.47M	25.49M	22.94M
Cash Flow
Free Cash Flow	-10.73M	-11.25M	-8.07M	-9.61M	-8.72M	-3.14M
Operating Cash Flow	-10.73M	-11.25M	-8.06M	-9.61M	-8.72M	-3.14M
Investing Cash Flow	0.00	-3.24K	-2.78K	0.00	0.00	0.00
Financing Cash Flow	14.15M	7.73M	6.27M	-388.84K	9.80M	17.87M

Processa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 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 PCSA, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 2.49, below the 50-day MA of 3.29, and below the 200-day MA of 5.67, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 30.89 is Neutral, neither overbought nor oversold. The STOCH value of 21.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCSA.

Processa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPCN	54 Neutral	$51.80M	-9.22	-32.92%	―	-44.31%	-34.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
COCP	45 Neutral	$13.51M	-1.05	-94.94%	―	―	49.10%
PHGE	45 Neutral	$8.37M	-0.17	-154.50%	―	―	54.25%
SNGX	43 Neutral	$10.99M	-0.30	-169.32%	―	―	53.13%
PCSA	41 Neutral	$5.23M	-0.07	-270.74%	―	―	72.88%
CANF	41 Neutral	$5.84M	―	―	―	―	―

Processa Pharmaceuticals Corporate Events

Processa Pharmaceuticals Regains Nasdaq Minimum Bid Compliance

On January 6, 2026, Processa Pharmaceuticals, Inc. announced that it had regained compliance with the Nasdaq Capital Market’s $1.00 minimum closing bid price requirement for continued listing, and Nasdaq has formally closed the matter. This resolution removes an immediate delisting risk for the company’s shares and stabilizes its stock market status, which may provide greater confidence and certainty for investors and other stakeholders.

The most recent analyst rating on (PCSA) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Processa Pharmaceuticals stock, see the PCSA Stock Forecast page.

Processa Pharmaceuticals Announces Reverse Stock Split

On December 12, 2025, Processa Pharmaceuticals announced a 1-for-25 reverse stock split of its common stock, effective December 16, 2025. This move, which will see the stock trade under a new CUSIP number but retain its ‘PCSA’ symbol, is designed to consolidate shares and adjust securities without affecting overall ownership percentages, except for fractional shares.

The most recent analyst rating on (PCSA) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on Processa Pharmaceuticals stock, see the PCSA Stock Forecast page.