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Rani Therapeutics Holdings (RANI)
NASDAQ:RANI
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Rani Therapeutics Holdings
(NASDAQ:RANI)
35Underperform
Positive Factors
Clinical Trial Results
Rani's partner ProGen announced positive repeat-dose weight loss data and favorable tolerability results from a Phase I study of PG-102, demonstrating its potential effectiveness.
Market Opportunity
The obesity market opportunity is large, projected to eclipse $100 billion, presenting a significant opportunity for RT-114 as a more tolerable, orally administered treatment option.
Product Differentiation
RT-114 looks thoughtfully differentiated in obesity treatment, with potential for greater efficacy, tolerability, and convenience due to increased drug exposure and an oral regimen.
Negative Factors
Competition
Phase 1 MAD data of PG-102 in patients with obesity and T2D showed an average weight loss of 4.8% at 5 weeks, which, while competitive, must contend with established treatments like semaglutide and tirzepatide.
Patient Adherence
Less than half of patients were still on treatment beyond 12 weeks, highlighting a need for more tolerable treatment options like RT-114 to improve adherence.
Rani Therapeutics Holdings (RANI) vs. S&P 500 (SPY)
Market Cap
$72.18M
Dividend YieldN/A
Average Volume (3M)203.60K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue GrowthN/A
EPS Growth20.85%
CountryUS
Employees140
SectorHealthcare
Sector Strength62
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.05
Shares Outstanding33,509,827
10 Day Avg. Volume168,219
30 Day Avg. Volume203,600
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-2.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside713.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Rani Therapeutics Holdings Business Overview & Revenue Model
Company DescriptionRani Therapeutics Holdings (RANI) is a healthcare company focused on developing innovative oral biologics utilizing its proprietary RaniPill technology. The company operates within the biotechnology and pharmaceutical sectors, offering a unique solution for the oral delivery of biologics, which are traditionally administered via injection. Rani's core product, the RaniPill capsule, is designed to deliver large-molecule drugs through the gastrointestinal tract, thereby improving patient compliance and expanding the potential market for biologic therapies.
How the Company Makes MoneyRani Therapeutics Holdings generates revenue primarily through the development and commercialization of its RaniPill technology. The company earns money by partnering with pharmaceutical companies to develop oral versions of existing injectable biologics. These partnerships often involve research and development collaborations, licensing agreements, and milestone payments. Rani may also receive royalties from the sale of drugs developed using its technology. Additionally, the company may engage in direct sales of its RaniPill technology or related products once they receive regulatory approval and enter the market.
Rani Therapeutics Holdings Financial Statement Overview
Summary
Rani Therapeutics Holdings shows positive revenue growth, suggesting potential for future expansion. However, persistent losses, high leverage, and negative cash flows are major concerns impacting its financial health. The company needs to focus on improving profitability and managing leverage to sustain long-term growth.Income Statement
The company shows a significant improvement in revenue with TTM sales reaching $2.75 million compared to prior periods of zero revenue. However, profitability remains a concern, as indicated by negative EBIT and net profit margins due to high operational costs. Positive revenue growth is a promising sign, yet the lack of profitability suggests financial challenges.40
Negative
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 10.81 in the latest TTM. Equity has significantly decreased, raising concerns about financial stability. The equity ratio is low, indicating heavy reliance on debt financing, which could pose risks if revenue growth does not translate into profits.35
Negative
Cash Flow
The cash flow analysis shows negative operating and free cash flows, reflecting ongoing cash burn. There is a positive trend in terms of reducing negative free cash flow, but the ratio of cash flow to net income remains unfavorable, highlighting cash management issues. Financing cash flow remains positive, indicating reliance on external funding.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.75M | 0.00 | 0.00 | 2.72M | 462.00K | 979.00K | Gross Profit |
| 2.02M | -822.00K | -1.31M | 2.72M | 462.00K | 979.00K | EBIT |
| -51.79M | -66.10M | -63.45M | -51.60M | -16.54M | -27.07M | EBITDA |
| -48.73M | -65.28M | -60.89M | -52.08M | -15.96M | -26.01M | Net Income Common Stockholders |
| -28.17M | -33.97M | -63.34M | -53.09M | -16.70M | -26.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 49.04M | 48.54M | 98.48M | 117.45M | 73.06M | 16.54M | Total Assets |
| 57.92M | 57.92M | 108.03M | 124.21M | 79.42M | 23.02M | Total Debt |
| 30.10M | 30.10M | 30.21M | 0.00 | 3.77M | 115.50M | Net Debt |
| 23.73M | 24.23M | 3.21M | -117.45M | -69.29M | 98.97M | Total Liabilities |
| 32.47M | 32.47M | 34.02M | 2.64M | 192.75M | 119.66M | Stockholders Equity |
| 12.87M | 12.87M | 36.85M | 47.41M | -113.34M | -96.64M |
| Cash Flow | Free Cash Flow | ||||
| -39.72M | -52.47M | -48.13M | -32.75M | -16.16M | -27.85M | Operating Cash Flow |
| -39.32M | -51.24M | -46.52M | -32.24M | -14.96M | -26.27M | Investing Cash Flow |
| 30.56M | 29.86M | -72.44M | -506.00K | -1.20M | -1.53M | Financing Cash Flow |
| 7.97M | 233.00K | 29.00M | 77.15M | 72.68M | 852.00K |
Rani Therapeutics Holdings Technical Analysis
Negative
1.23
Price Trends
1.50
Negative
1.64
Negative
2.24
Negative
Market Momentum
-0.06
Positive
33.76
Neutral
11.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RANI, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.50, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 11.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RANI.
Rani Therapeutics Holdings Risk Analysis
Rani Therapeutics Holdings disclosed 102 risk factors in its most recent earnings report. Rani Therapeutics Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rani Therapeutics Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
47 Neutral | $299.65M | ― | -526.33% | ― | ― | 14.39% | |
47 Neutral | $87.42M | 21.10 | -12.29% | ― | -100.00% | ― | |
46 Neutral | $255.74M | ― | -31.16% | ― | -13.98% | -200.43% | |
39 Underperform | $15.31M | ― | -25.70% | ― | ― | 86.44% | |
35 Underperform | $72.18M | ― | -404.07% | ― | ― | 20.85% | |
33 Underperform | $12.11M | ― | -499.57% | ― | 22.15% | ― |
* Healthcare Sector Average
Performance Comparison
RANI
Rani Therapeutics Holdings
1.39
-1.92
-58.01%
VSTM
Verastem
5.84
-6.14
-51.25%
ARCT
Arcturus Therapeutics
10.20
-22.54
-68.85%
ORMP
Oramed Pharm
2.20
-0.55
-20.00%
XTLB
XTL Biopharmaceuticals Ltd. Sponsored ADR
1.24
-2.09
-62.76%
PAVM
PAVmed
0.68
-1.63
-70.56%
Rani Therapeutics Holdings Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -2.38% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in Rani's technology and pipeline, particularly in the obesity treatment market, supported by strategic partnerships and successful preclinical data. However, financial challenges remain, as evidenced by decreased cash reserves and a substantial net loss for the year.Highlights
Advancements in RaniPill Technology
The RaniPill technology, designed for oral delivery of biologics, has shown success in preclinical and clinical trials, achieving high bioavailability for 19 molecules and completing three Phase 1 studies with no serious adverse events.
Progress in Obesity Treatment Pipeline
Rani made significant advancements in their obesity treatment pipeline, particularly with RT-114 and semaglutide programs, expecting the obesity market to reach $100 billion by 2030.
Successful Preclinical Data for RT-116
RT-116 demonstrated comparable pharmacokinetics and weight loss to subcutaneous administration with a relative bioavailability of 107% in preclinical studies.
RT-114 Preclinical Success
RT-114 showed higher Cmax and earlier Tmax than subcutaneous PG-102, with a relative bioavailability of 111% and equivalent weight loss in canine studies.
Strategic Partnership with ProGen
Rani entered a co-development agreement with ProGen for RT-114, combining ProGen's GLP-1/GLP-2 molecule with RaniPill technology.
Lowlights
Decreased Financial Reserves
Cash, cash equivalents, and marketable securities decreased from $48.5 million in 2023 to $27.6 million in 2024, with funding expected to last into Q3 2025.
Impairment Loss
Rani recorded an impairment loss of $3.7 million related to certain manufacturing property and equipment.
Net Loss for 2024
The net loss for 2024 was $56.6 million, including an impairment loss of $3.7 million and stock-based compensation expense of $16 million.
Company Guidance
During Rani Therapeutics' fourth quarter and full year 2024 earnings call, guidance was provided on the company's strategic focus and financial outlook. The company emphasized advancements in its RaniPill platform, highlighting its application in obesity and immunology spaces. Rani plans to further develop its RT-114 and semaglutide programs, with RT-114 moving into clinical trials by mid-2025. Financially, Rani reported a net loss of $56.6 million for the full year, an improvement from $67.9 million in 2023, partly due to cost containment measures. The company ended the year with $27.6 million in cash and expects this to fund operations into the third quarter of 2025. Additionally, Rani is exploring partnership opportunities to leverage its platform technology across multiple indications.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.