Processa Pharmaceuticals (PCSA) AI Stock Analysis

• Market Cap: $5.58M
• Dividend Yield: N/A
• Average Volume (3M): 32.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: 56.26%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.77
• Shares Outstanding: 26,194,357
• 10 Day Avg. Volume: 11,046,780
• 30 Day Avg. Volume: 32,914,335
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.45
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -0.74
• Enterprise Value/Ebitda: -0.05
• 1Y Price Target: $2.00
• Price Target Upside: 809.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 29 Underperform
• Price Target: ―

Processa Pharmaceuticals is facing significant financial challenges with no revenue generation and ongoing losses. Technical indicators point to bearish momentum, and valuation metrics highlight the high-risk nature typical of early-stage biotech firms. The company's reliance on external financing for sustainability remains a concern.

Positive Factors

Clinical Trials

The Phase 2 trial for NGC-Cap is designed to evaluate its safety and efficacy compared to an FDA-approved drug, with the potential to personalize therapy for advanced or metastatic breast cancer.

Licensing and Partnerships

Processa has signed a binding term sheet with Intact Therapeutics, granting an exclusive option to license PCS12852 and is eligible for up to $454M in milestone payments, a 12% royalty, and a 3.5% equity stake.

Negative Factors

Financial Performance

Processa reported a net loss of ($2.7M) and ($11.9M) for 4Q24 and full-year results, ending the period with $1.2M in cash and equivalents and no debt.

Financing Challenges

Challenging financing conditions may limit Processa's ability to fund the study, particularly on favorable terms.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-222.00	-27.52M	-12.13M	-15.14M
EBITDA	-11.85M	-11.46M	-19.47M	-11.08M	-5.63M
Net Income	-11.85M	-11.12M	-27.42M	-11.43M	-14.41M
Balance Sheet
Total Assets	3.23M	5.79M	8.62M	26.46M	25.21M
Cash, Cash Equivalents and Short-Term Investments	1.19M	4.71M	6.50M	16.50M	15.42M
Total Debt	73.51K	150.55K	229.45K	78.46K	328.12K
Total Liabilities	1.53M	797.48K	1.15M	978.40K	2.27M
Stockholders Equity	1.70M	4.99M	7.47M	25.49M	22.94M
Cash Flow
Free Cash Flow	-11.25M	-8.07M	-9.61M	-8.72M	-3.14M
Operating Cash Flow	-11.25M	-8.06M	-9.61M	-8.72M	-3.14M
Investing Cash Flow	-3.24K	-2.78K	0.00	0.00	0.00
Financing Cash Flow	7.73M	6.27M	-388.84K	9.80M	17.87M

Processa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 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 0.22 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.25, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 23.92 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
Sector *	52 Neutral	$7.37B	-0.04	-63.81%	2.59%	16.40%	<0.01%
GRI	45 Neutral	$4.54M	―	-468.00%	―	―	98.55%
ONCO	33 Underperform	$1.80M	―	-237.69%	―	―	-97.16%
SLRX	30 Underperform	$1.31M	―	-300.16%	―	―	79.57%
ZVSA	29 Underperform	$696.90K	―	-91.39%	―	―	99.39%
PCSA	29 Underperform	$5.58M	―	-192.72%	―	―	56.26%
VINC	15 Underperform	$1.44M	―	-431.29%	―	―	48.17%

Processa Pharmaceuticals Corporate Events

Processa Pharmaceuticals Raises $5M in Public Offering

On January 27, 2025, Processa Pharmaceuticals entered into a securities purchase agreement with a healthcare-focused institutional investor, resulting in the sale of shares and warrants in a public offering. The offering closed on January 29, 2025, raising approximately $5 million in gross proceeds, which the company intends to use for general corporate purposes, marking a significant financial move within the industry.