Prelude Therapeutics (PRLD) AI Stock Analysis

• Market Cap: $54.99M
• Dividend Yield: N/A
• Average Volume (3M): 149.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: N/A
• EPS Growth: 16.38%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -0.42
• Shares Outstanding: 43,610,220
• 10 Day Avg. Volume: 175,172
• 30 Day Avg. Volume: 149,160
• PEG Ratio: -0.36
• Price to Book (P/B): -17.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.10
• Enterprise Value/Market Cap: 15.10
• Enterprise Value/Revenue: 34.82
• Enterprise Value/Gross Profit: 118.62
• Enterprise Value/Ebitda: -1.49
• 1Y Price Target: $3.33
• Price Target Upside: 258.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 35 Underperform
• Price Target: ―

Prelude Therapeutics faces significant financial hurdles due to ongoing losses and lack of revenue, which heavily impact its overall score. Technical analysis shows mixed short-term momentum, but long-term weakness persists. The valuation is challenged by a negative P/E ratio and lack of dividends. However, recent corporate developments, including promising clinical results and a solid cash runway, offer some positive aspects, albeit insufficient to offset the broader financial concerns.

Positive Factors

Clinical Trials

Initial data for PRT3789 monotherapy shows promising results in upper GI tumors with a 100% objective response rate in early data.

Financial Position

Prelude Therapeutics maintains a strong cash position of $133.6 million, providing a solid financial foundation for ongoing research and development activities.

Market Potential

Prelude Therapeutics shares represent a unique investment opportunity, with a potential upside of 646%.

Negative Factors

Clinical Risks

Risks include negative clinical results for PRT3789 and delays in advancing these candidates into registrational programs.

Competitive Landscape

The competitive landscape poses risks, particularly with respect to other SMARCA2 inhibitors/degraders that are currently in clinical development.

Safety Concerns

Treatment discontinuations due to treatment emergent adverse events occurred in five patients in the monotherapy cohort.

Prelude Therapeutics Business Overview & Revenue Model

Company Description

Prelude Therapeutics Incorporated, a clinical-stage precision oncology company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT543 that is in Phase 1 clinical trials in select solid tumors and myeloid malignancies; and PRT811, which is in Phase 1 clinical trials in solid tumors, including glioblastoma multiforme. The company is also developing PRT1419, a potent and selective inhibitor of the anti-apoptotic protein; PRT2527, a potent inhibitor of CDK9 that exhibits high kinome selectivity; PRT-SCA2, which is in preclinical stage for multiple genomically selected cancers; PRT3645, a brain penetrant molecule that potently and selectively targets CDK4/6; and PRT-K4 that is in preclinical stage for solid tumors. The company was incorporated in 2016 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Prelude Therapeutics primarily makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model includes out-licensing its drug candidates to larger pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties on sales if the drugs are successfully developed and commercialized. Prelude may also engage in collaborative research and development partnerships with other biotech or pharmaceutical companies, which can provide additional funding and resources. Additionally, the company might receive grants or funding from government or non-profit organizations to support its research efforts. As a clinical-stage company, Prelude's revenue may be limited until its drug candidates receive regulatory approval and reach the market.

Prelude Therapeutics Financial Statement Overview

Summary

Prelude Therapeutics is facing severe financial challenges with no revenue generation and increasing losses. The balance sheet remains moderately leveraged, but declining equity and increasing liabilities are concerning. Persistent negative cash flow from operations exacerbates the financial strain, underscoring the need for strategic adjustments to enhance financial stability.

Income Statement

Prelude Therapeutics has consistently reported zero revenue over the past years, indicating no sales generation. The company is incurring substantial EBIT and net losses, which are increasing annually, reflecting mounting operational challenges. The lack of any revenue growth and negative profit margins highlight significant financial strain.

Balance Sheet

The balance sheet shows a relatively stable equity position, though declining over the years. The debt-to-equity ratio remains low, which indicates limited leverage use. However, the continuous decline in stockholders' equity coupled with increasing liabilities suggests growing financial pressure.

Cash Flow

Cash flow from operations remains negative and has worsened, which indicates ongoing cash burn. Although free cash flow shows a negative trajectory, the company has managed to access financing, which temporarily boosts liquidity. The lack of revenue significantly hampers cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.00M	7.00M	0.00	0.00	0.00	0.00
	Gross Profit
7.00M	7.00M	-1.17M	-3.04M	-2.24M	-542.00K
	EBIT
-139.98M	-139.71M	-132.28M	-123.54M	-113.73M	-58.76M
	EBITDA
-138.20M	-139.71M	-131.11M	-122.22M	-112.82M	-58.22M
	Net Income Common Stockholders
-127.83M	-127.17M	-121.83M	-107.34M	-110.78M	-56.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.07M	133.61M	232.94M	201.73M	291.23M	218.31M
	Total Assets
141.26M	175.51M	277.67M	220.50M	305.10M	223.59M
	Total Debt
17.92M	18.02M	16.89M	1.83M	1.74M	0.00
	Net Debt
-22.35M	5.55M	-8.40M	-28.77M	-30.09M	-218.31M
	Total Liabilities
38.08M	44.06M	40.58M	25.06M	19.20M	11.41M
	Stockholders Equity
103.18M	131.46M	237.09M	195.44M	285.90M	212.18M
Cash Flow		Free Cash Flow
-105.85M	-103.65M	-110.58M	-86.75M	-85.85M	-46.80M
	Operating Cash Flow
-105.33M	-102.89M	-107.06M	-83.73M	-83.53M	-46.18M
	Investing Cash Flow
121.16M	90.19M	-34.65M	81.69M	-263.80M	-621.00K
	Financing Cash Flow
-266.00K	-120.00K	136.40M	815.00K	164.90M	246.23M

Prelude Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 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 PRLD, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 0.96, above the 50-day MA of 0.88, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRLD.

Prelude Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.25B	3.27	-44.35%	6.27%	16.79%	-0.10%
RPTX	53 Neutral	$60.91M	―	-71.64%	―	-98.90%	-177.17%
SPRO	48 Neutral	$162.14M	10.83	-107.28%	―	-71.68%	-397.61%
CELU	41 Neutral	$42.15M	―	-232.51%	―	138.11%	76.60%
ITRM	35 Underperform	$40.00M	―	607.06%	―	―	55.67%
PRLD	35 Underperform	$54.99M	―	-81.44%	―	―	16.38%
ANTX	34 Underperform	$35.61M	―	-49.32%	―	―	38.98%

Prelude Therapeutics Corporate Events

Prelude Therapeutics Reports 2024 Financial Results and Updates

Prelude Therapeutics reported its financial results for 2024 and provided updates on its clinical development pipeline. The company highlighted the progress of its SMARCA2 degrader programs, including PRT3789, which has shown promising results in treating SMARCA4-deficient cancers. Prelude’s financial position remains strong, with a cash runway extending into the second quarter of 2026. The company continues to focus on advancing its precision oncology medicines and expects to share further data in 2025.

Prelude Therapeutics Appoints Bryant D. Lim as CFO

Prelude Therapeutics has appointed Bryant D. Lim as the permanent Chief Financial Officer, effective February 3, 2025, while he continues his roles as Chief Legal Officer and Corporate Secretary. This decision follows his interim CFO position, and his employment agreement includes a base salary, bonus eligibility, stock options, and benefits contingent upon his continued service and compliance with the agreement.