Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $3.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: -17.87%
• EPS Growth: -1.89%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.90
• Shares Outstanding: 120,538,360
• 10 Day Avg. Volume: 1,207,248
• 30 Day Avg. Volume: 1,386,343
• PEG Ratio: 34.61
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.73
• 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: $67.50
• Price Target Upside: 120.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 52 Neutral
• Price Target: $31.00 ▲( 1.37% Upside)

Avidity Biosciences' overall stock score reflects a mix of significant financial challenges and hopeful forward-looking prospects. The company's strong equity and low leverage are overshadowed by consistent net losses and negative cash flows, resulting in a low financial performance score. Meanwhile, the positive trial results and potential for regulatory advancements provide a bright spot, enhancing the outlook slightly. Technical analysis supports a stable but cautious stance, while valuation metrics suggest speculative risk due to ongoing losses.

Positive Factors

Clinical Trials

FORTITUDE trial data showed directional improvement in key clinical endpoints like RWS, total composite score, shoulder abductor, and ankle dorsiflexion, when compared to the placebo arm.

Financial Stability

Strong cash runway supports a rich and steady pipeline development.

Regulatory Approval

RNA has built flexibility into their approach to accelerated approval in FSHD which could help them gain alignment with the FDA.

Negative Factors

Dose Dependency

The understanding of muscle degenerative disease landscape suggests that dose dependent effects might be absent, which might indicate that 2 mg/kg might be near saturation.

Regulatory Challenges

There is a real chance that alignment on the biomarker or Ph3 design could be delayed due to agency bandwidth and flexibility changes.

Avidity Biosciences Business Overview & Revenue Model

Company Description

Avidity Biosciences is a biotechnology company focused on the development of RNA-based therapeutics. The company is pioneering a novel class of oligonucleotide-based therapies called Antibody Oligonucleotide Conjugates (AOCs), which leverage monoclonal antibodies to target and deliver RNA therapeutics to specific tissues. Avidity aims to address various unmet medical needs, particularly in the fields of rare muscle disorders, and other serious diseases.

How the Company Makes Money

Avidity Biosciences generates revenue primarily through strategic collaborations and partnerships with larger pharmaceutical companies. These agreements often include upfront payments, milestone payments contingent on successful development progress, and potential royalties from product sales. Additionally, the company may receive research grants and funding from non-profit organizations or governmental bodies to support its innovative RNA-based therapeutic programs. The company's revenue model is highly dependent on the success of its research and development efforts and its ability to bring new therapies to market.

Avidity Biosciences Financial Statement Overview

Summary

Avidity Biosciences faces significant financial challenges with consistent net losses and negative cash flows, reflecting profitability and liquidity concerns. While the company has maintained strong equity levels and low leverage, primarily due to external financing, the sustainability of its financial health depends on improving operational performance and achieving profitability in the future.

Income Statement

Avidity Biosciences demonstrates a consistent negative net income and EBIT over the years, reflecting profitability challenges. The gross profit margin is 100% for the last reported year, suggesting that all revenue directly contributes to gross profit, but the high operating expenses lead to significant net losses. Revenue growth has been modest over the years, with a notable increase from 2023 to 2024, indicating some improvement in business development.

Balance Sheet

The company maintains a strong equity base, with stockholders' equity significantly higher than its total debt, resulting in a low debt-to-equity ratio, which is a positive indicator. However, consistent net losses raise concerns about the sustainability of equity levels. The equity ratio remains high, suggesting financial stability in terms of asset financing through equity.

Cash Flow

Avidity Biosciences struggles with negative operating and free cash flows, reflecting challenges in generating cash from operations. The free cash flow to net income ratio indicates that cash outflows exceed net losses. Although financing activities provide additional cash, reliance on external funding may not be sustainable long-term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.90M	9.56M	9.22M	9.33M	6.79M
	Gross Profit
10.90M	7.46M	7.84M	8.69M	-30.82M
	EBIT
-378.94M	-235.60M	-178.91M	-118.05M	-44.28M
	EBITDA
-378.94M	-233.50M	-177.53M	-117.41M	-43.77M
	Net Income Common Stockholders
-322.30M	-212.22M	-169.08M	-117.37M	-43.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.50B	595.35M	610.73M	405.54M	328.14M
	Total Assets
1.56B	628.55M	638.80M	427.58M	333.90M
	Total Debt
6.80M	9.85M	10.69M	9.96M	938.00K
	Net Debt
-213.07M	-175.23M	-329.71M	-395.58M	-327.20M
	Total Liabilities
138.94M	127.79M	60.73M	46.15M	27.68M
	Stockholders Equity
1.42B	500.76M	578.08M	381.43M	306.22M
Cash Flow		Free Cash Flow
-307.94M	-123.29M	-139.09M	-98.55M	-38.21M
	Operating Cash Flow
-300.87M	-119.06M	-136.27M	-94.81M	-37.12M
	Investing Cash Flow
-854.20M	-130.07M	-189.96M	-82.52M	-7.79M
	Financing Cash Flow
1.19B	93.86M	346.17M	176.32M	272.04M

Avidity Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNA, the sentiment is Positive. The current price of 30.58 is above the 20-day moving average (MA) of 30.15, above the 50-day MA of 29.49, and below the 200-day MA of 36.41, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 73.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNA.

Avidity Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	69 Neutral	$3.64B	7.05	33.08%	―	91.12%	―
ACLX	55 Neutral	$3.52B	―	-35.56%	―	-41.66%	-180.15%
SWTX	54 Neutral	$3.50B	―	-51.57%	―	730.42%	31.63%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
RYTM	52 Neutral	$3.97B	―	-418.97%	―	48.88%	39.30%
RNA	52 Neutral	$3.69B	―	-34.19%	―	-17.87%	-1.89%
RARE	43 Neutral	$3.37B	―	-386.33%	―	33.46%	26.72%

Avidity Biosciences Corporate Events

Avidity Biosciences Announces Positive EXPLORE44 Trial Results

On March 17, 2025, Avidity Biosciences announced the topline data from its Phase 1/2 EXPLORE44 trial for delpacibart zotadirsen (del-zota) in patients with Duchenne muscular dystrophy amenable to exon 44 skipping. The trial results showed consistent delivery of PMOs to skeletal muscle, increased exon 44 skipping, enhanced dystrophin production, and reduced creatine kinase levels, demonstrating favorable safety and tolerability. The company plans to submit a Biologics License Application by the end of 2025, aiming for accelerated approval in the U.S.