Processa Pharmaceuticals (PCSA) AI Stock Analysis

• Market Cap: $7.84M
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: N/A
• EPS Growth: 72.88%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.75
• Shares Outstanding: 2,265,769
• 10 Day Avg. Volume: 143,506
• 30 Day Avg. Volume: 1,558,085
• PEG Ratio: 0.10
• Price to Book (P/B): 39.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.01
• Enterprise Value/Market Cap: 28.29
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -17.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $3.00 ▲(2400.00% Upside)

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

Low Leverage

Zero reported debt materially reduces long-term refinancing and interest burden, preserving flexibility to allocate scarce capital to R&D and clinical programs. For a clinical-stage biotech this lowers solvency risk and provides a cleaner capital structure while development milestones are pursued.

Phase 2 Enrollment Milestone

Completing the enrollment threshold for the FDA‑recommended interim analysis is a durable program-level milestone that de-risks the NGC-Cap program by enabling data-driven decisions on dosing and sample size. Positive interim outcomes could accelerate development, partnerships, or adaptive study design changes.

Favorable Pharmacology Profile

NGC-Cap’s reported ability to raise active metabolite exposure while maintaining similar safety suggests a stronger therapeutic index. That structural efficacy/safety advantage can improve clinical differentiation, increase licensing appeal, and support longer-term commercial and regulatory value if confirmed in pivotal studies.

Negative Factors

Pre‑Revenue, Persistent Losses

With no product revenue and growing net losses, the company remains fully dependent on external capital to fund operations. Sustained operating deficits erode cash reserves and force repeated financings, increasing dilution risk and making long-term program continuity contingent on successful clinical results or partnership revenues.

Worsening Free Cash Flow

A dramatic deterioration in free cash flow shortens runway and raises the probability of near‑term capital raises. For a clinical-stage biotech, higher burn constrains the ability to advance multiple trials concurrently, pressures negotiation leverage in deals, and increases the chance of dilutive financings.

Eroded Equity / Capital Structure Actions

A reverse split and prior Nasdaq compliance actions reflect persistent market cap and share‑price pressure tied to thin capitalization. Such measures signal fragility in public equity support, can reduce liquidity, complicate future financings, and often precede further dilutive transactions if operating losses continue.

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

Processa Pharmaceuticals is in a challenging financial position, characteristic of early-stage biotech firms. The absence of revenue generation, ongoing losses, and reliance on external financing highlight the company's high-risk profile. While the low debt level provides some leverage flexibility, the focus remains on securing sustainable revenue sources to improve financial health.

Income Statement

The company has not generated any revenue over the past years, which is typical for early-stage biotechnology firms focusing on R&D. However, it has consistently incurred net losses. The absence of revenue growth and negative profit margins indicate ongoing operational challenges.

Balance Sheet

The company maintains a relatively low level of debt, as evidenced by a low debt-to-equity ratio. However, declining stockholders' equity over the years suggests ongoing financial strain, likely due to consistent losses. The equity ratio remains positive, indicating some level of financial stability.

Cash Flow

The company has been generating negative operating cash flow, reflecting its inability to cover expenses without external financing. Free cash flow is also negative, indicating a reliance on financing activities to sustain operations. This poses a risk for long-term sustainability unless revenue generation begins.

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 4.07, below the 50-day MA of 6.15, and below the 200-day MA of 6.32, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.73 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	52 Neutral	$41.81M	-7.41	-32.92%	―	-44.31%	-34.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
COCP	45 Neutral	$15.16M	-1.18	-94.94%	―	―	49.10%
SNGX	43 Neutral	$14.52M	-0.39	-169.32%	―	―	53.13%
PHGE	43 Neutral	$3.42M	-0.07	-154.50%	―	―	54.25%
PCSA	41 Neutral	$7.84M	-0.10	-270.74%	―	―	72.88%
CANF	41 Neutral	$5.68M	―	―	―	―	―

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.