Rallybio (RLYB) AI Stock Analysis

• Market Cap: $17.68M
• Dividend Yield: N/A
• Average Volume (3M): 51.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: N/A
• EPS Growth: 27.35%
• Country: US
• Employees: 25
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -1.34
• Shares Outstanding: 41,612,038
• 10 Day Avg. Volume: 62,023
• 30 Day Avg. Volume: 51,957
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 46.47
• Price to Cash Flow (P/CF): -0.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.00
• Price Target Upside: 2700.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Rallybio faces substantial financial challenges typical for a biotech firm in its R&D phase, with significant operational losses and negative cash flows. The technical analysis indicates a strong downward price trend, and its valuation reflects deep unprofitability. These factors combine to suggest a high-risk investment with substantial uncertainty unless future developments improve the company's financial outlook.

Positive Factors

Investor Interest

Phase 1 data for differentiated C5 inhibitor RLYB116 could draw investor interest back to RLYB.

Pipeline Focus

Rallybio will now focus its resources on advancing other pipeline programs, notably RLYB116, an inhibitor of complement component 5 (C5) with potential applications in treating complement-related diseases.

Negative Factors

Clinical Trial Failure

The decision to discontinue RLYB212 was based on pharmacokinetic (PK) data from the Phase 2 trial indicating the inability to achieve predicted target concentrations, as well as the minimum target concentration required for efficacy.

Program Discontinuation

Rallybio has announced the discontinuation of its RLYB212 program, which was undergoing development for the prevention of fetal and neonatal alloimmune thrombocytopenia (FNAIT).

Stock Valuation Impact

We are surprised by the negative PK data and consider this a major setback, as the FNAIT program represented the most significant component of our valuation.

Rallybio Business Overview & Revenue Model

Company Description

Rallybio Corporation, a clinical-stage biotechnology company, engages in discovering, developing, manufacturing, and delivering therapies that enhance the lives of patients suffering from severe and rare diseases. Its lead product candidate is RLYB212, a monoclonal anti-HPA-1a antibody that is in Phase I clinical trial for the prevention of fetal and neonatal alloimmune thrombocytopenia (FNAIT). The company is also developing RLYB211, a polyclonal anti-HPA-1a antibody that is in a Phase 1/2 clinical trial for the prevention of FNAIT; RLYB114, a pegylated complement factor 5 (C5)-targeted Affibody molecule in preclinical development for the treatment of complement-mediated ophthalmic diseases; and RLYB116, a subcutaneously administered inhibitor of C5 for the treatment of patients with paroxysmal nocturnal hemoglobinuria and generalized myasthenia gravis. Rallybio has collaboration with Exscientia for the development of small molecule therapeutics for rare diseases. Rallybio Corporation was founded in 2018 and is headquartered in New Haven, Connecticut.

How the Company Makes Money

Rallybio makes money through the development and commercialization of its proprietary drug candidates. Revenue is primarily generated from partnerships and collaborations with larger pharmaceutical companies, which may include milestone payments, royalties, and licensing fees. Additionally, the company may receive funding from grants and research agreements to support its clinical trials and product development efforts. As Rallybio advances its pipeline products through clinical trials and towards regulatory approval, it aims to establish further commercial agreements to drive revenue growth.

Rallybio Financial Statement Overview

Summary

Rallybio's financial performance is weak, with significant operational losses, strong equity relative to liabilities, and negative cash flows typical for a biotech in development. The lack of revenue growth presents severe sustainability challenges.

Income Statement

Rallybio's income statement reveals significant challenges, with high negative EBIT and net income figures, indicating substantial losses. The gross profit margin is theoretically 100% due to low revenue but masks the underlying operational losses. The company has shown no revenue growth, reflecting the R&D stage typical in biotech, yet this poses sustainability concerns.

Balance Sheet

The balance sheet shows a strong equity base relative to liabilities, with a high equity ratio due to minimal debt. However, the substantial and consistent net losses are eroding equity, with return on equity being severely negative, indicating inefficient use of equity capital.

Cash Flow

Rallybio's cash flow statement highlights a concerning trend of negative operating and free cash flows, indicating cash burn typical for a biotech firm in development phases. The positive but declining cash position from financing activities raises sustainability questions without revenue growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
636.00K	0.00	0.00	0.00	0.00
	Gross Profit
636.00K	-150.00K	-167.00K	-109.00K	-62.03K
	EBIT
-60.50M	-78.93M	-67.88M	-45.65M	-25.30M
	EBITDA
-60.50M	-72.37M	-65.41M	-45.39M	-24.83M
	Net Income Common Stockholders
-57.77M	-74.56M	-66.49M	-47.01M	-24.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
65.51M	109.93M	168.99M	175.33M	140.23M
	Total Assets
68.11M	115.62M	180.44M	182.19M	141.86M
	Total Debt
154.00K	392.00K	555.00K	0.00	0.00
	Net Debt
-13.75M	-24.10M	-56.40M	-175.33M	-140.23M
	Total Liabilities
6.45M	9.44M	11.12M	6.58M	187.88M
	Stockholders Equity
61.65M	106.18M	169.32M	175.60M	-47.01M
Cash Flow		Free Cash Flow
-49.28M	-60.28M	-57.34M	-45.87M	-22.18M
	Operating Cash Flow
-49.28M	-60.27M	-57.28M	-45.53M	-22.04M
	Investing Cash Flow
33.49M	27.66M	-112.17M	-2.33M	-2.07M
	Financing Cash Flow
5.20M	143.00K	51.08M	82.97M	144.89M

Rallybio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLYB, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.69, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.38 is Neutral, neither overbought nor oversold. The STOCH value of 17.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLYB.

Rallybio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNY	50 Neutral	$30.30B	―	-414.62%	―	22.97%	38.54%
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
CRSP	46 Neutral	$3.01B	―	-19.20%	―	-89.95%	-123.71%
NTLA	41 Neutral	$677.00M	―	-54.00%	―	59.55%	3.09%
EDIT	39 Underperform	$82.98M	―	-98.10%	―	-58.64%	-40.05%
BEAM	39 Underperform	$1.53B	―	-43.94%	―	-83.18%	-144.95%
RLYB	30 Underperform	$17.68M	―	-68.85%	―	―	27.35%