Cartesian Therapeutics (RNAC) AI Stock Analysis

• Market Cap: $376.69M
• Dividend Yield: N/A
• Average Volume (3M): 86.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 38.82%
• EPS Growth: -645.78%
• Country: US
• Employees: 66
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -52.64
• Shares Outstanding: 25,907,100
• 10 Day Avg. Volume: 106,034
• 30 Day Avg. Volume: 86,925
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.69
• Price to Cash Flow (P/CF): -14.90
• 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: $37.33
• Price Target Upside: 156.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Cartesian Therapeutics exhibits significant financial risks with declining revenues and negative equity. Technically, the stock is oversold with weak momentum, and valuation metrics are not favorable. However, positive corporate developments, including advancements in clinical trials and strategic initiatives, offer potential upside. Overall, caution is advised due to predominant financial and technical weaknesses.

Positive Factors

Clinical Trials

The likelihood of success for the Phase III AURORA trial is very high given the impressive Phase IIb data.

Financial Health

Cartesian's balance sheet should support operations into mid-2027, including the completion of the planned Phase 3 AURORA trial of Descartes-08 in myasthenia gravis.

Regulatory Developments

Cartesian received a Special Protocol Assessment (SPA) agreement on the study design for the Descartes-08's Phase 3 AURORA study in MG, which helps de-risk the Phase 3 trial.

Negative Factors

Market Perception

The AURORA Phase 3 trial is the only registrational study Cartesian needs to support a BLA submission based on the recent SPA agreement with the FDA, which is an underappreciated regulatory de-risking event.

Stock Price Target

Despite positive developments, the price target for Cartesian Therapeutics has been adjusted from $45 to $40.

Cartesian Therapeutics Business Overview & Revenue Model

Company Description

Selecta Biosciences, Inc., a clinical-stage biopharmaceutical company, engages in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases. The company's lead therapeutic gene therapy program is SEL-302 that is in Phase I clinical trial to enhance the treatment of methylmalonic acidemia. It is also developing biologic therapies, such as SEL-212 that is in Phase III clinical trials for the treatment of chronic refractory gout; and product candidates to treat IgA-mediated diseases, including IgA nephropathy, linear IgA bullous dermatitis, IgA pemphigus, and Henoch-Schonlein purpura. In addition, the company is developing gene therapies comprising for the treatment of pompe disease, duchenne muscular dystrophy, limb-girdle muscular dystrophy, lysosomal storage disorder, and other autoimmune diseases. Further, it develops tolerogenic therapies to treat autoimmune diseases. The company has license and collaboration agreements with Ginkgo Bioworks Holdings, Inc.; Genovis AB (publ.); Cyrus Biotechnology, Inc.; IGAN Biosciences, Inc.; Astellas Therapeutics, Inc.; Takeda Pharmaceuticals USA, Inc.; Swedish Orphan Biovitrum AB (publ.); Sarepta Therapeutics, Inc.; Asklepios Biopharmaceutical, Inc.; Massachusetts Institute of Technology; and Shenyang Sunshine Pharmaceutical Co., Ltd. Selecta Biosciences, Inc. was incorporated in 2007 and is headquartered in Watertown, Massachusetts.

How the Company Makes Money

Cartesian Therapeutics makes money primarily through the development and commercialization of its RNA-based cell therapy products. The company's revenue model includes partnerships and collaborations with pharmaceutical companies, government grants, and potentially licensing agreements for its proprietary technology and therapies. Cartesian may also earn revenue from clinical trial outcomes by advancing its therapies through development stages, attracting investment, and securing milestone payments. As the company progresses its therapies towards regulatory approval and market launch, sales of these therapies will become a significant revenue stream.

Cartesian Therapeutics Financial Statement Overview

Summary

Cartesian Therapeutics faces significant financial challenges with declining revenues, consistent net losses, and negative equity. The company is heavily reliant on external financing, as indicated by the negative free cash flow and high financing cash flows. While there are efforts to stabilize through capital raising, the persistent negative margins and equity suggest substantial financial risks.

Income Statement

Cartesian Therapeutics has shown volatility in its revenue with a significant decline in recent years. The revenue fell from $110.8 million in 2022 to $38.9 million in 2024. The company has consistently operated at a loss, with a net income of -$77.4 million in 2024. Margins are negative, indicating struggles in profitability.

Balance Sheet

The balance sheet highlights negative stockholders' equity, which stands at -$6.8 million in 2024, raising concerns about financial stability. The company's total liabilities exceed its assets, indicating high leverage and potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, and this reflects potential financial risk.

Cash Flow

The cash flow statement shows a negative free cash flow of -$32.8 million in 2024, though it is an improvement compared to -$51.4 million in 2023. Operating cash flow remains negative, which indicates challenges in generating cash from operations. However, the significant financing cash flow suggests efforts in raising capital to support operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
38.91M	26.00M	110.78M	85.08M	16.60M
	Gross Profit
38.91M	24.45M	108.74M	85.08M	16.60M
	EBIT
-43.90M	-86.42M	14.54M	-4.60M	-56.82M
	EBITDA
-75.99M	-235.06M	39.84M	-5.16M	-65.59M
	Net Income Common Stockholders
-77.42M	-219.71M	35.38M	-25.69M	-68.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
212.61M	76.91M	134.60M	128.06M	138.69M
	Total Assets
435.02M	305.05M	165.89M	159.88M	165.44M
	Total Debt
13.98M	10.96M	37.92M	35.28M	35.35M
	Net Debt
-198.63M	-65.96M	-68.51M	-78.78M	-103.34M
	Total Liabilities
441.82M	745.23M	72.06M	137.36M	183.44M
	Stockholders Equity
-6.80M	-440.18M	93.83M	22.52M	-18.01M
Cash Flow		Free Cash Flow
-32.77M	-51.37M	-32.83M	-61.47M	34.07M
	Operating Cash Flow
-23.67M	-51.16M	-31.63M	-60.38M	34.88M
	Investing Cash Flow
-8.74M	34.61M	-15.00M	-17.14M	-741.00K
	Financing Cash Flow
168.43M	-13.14M	39.22M	52.90M	14.43M

Cartesian Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNAC, the sentiment is Negative. The current price of 14.54 is below the 20-day moving average (MA) of 16.37, below the 50-day MA of 18.02, and below the 200-day MA of 18.45, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 33.20 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNAC.

Cartesian Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
ADAP	46 Neutral	$52.72M	―	-273.36%	―	194.23%	45.50%
CRSP	46 Neutral	$3.17B	―	-19.20%	―	-89.95%	-123.71%
CABA	45 Neutral	$75.76M	―	-62.16%	―	―	-25.02%
FATE	42 Neutral	$97.33M	―	-54.21%	―	-78.55%	-0.92%
IBRX	41 Neutral	$2.68B	―	78.99%	―	2270.58%	46.82%
RNAC	40 Underperform	$376.69M	―	-938.38%	―	38.82%	-645.78%

Cartesian Therapeutics Corporate Events

Cartesian Therapeutics Advances Descartes-08 in Clinical Trials

Cartesian Therapeutics announced significant progress in its clinical trials for Descartes-08, an investigational mRNA CAR T-cell therapy, which has shown deep and durable responses in patients with myasthenia gravis during a Phase 2b trial. The company plans to commence a Phase 3 AURORA study in the first half of 2025, aiming to further evaluate the therapy’s efficacy and safety, with the potential to address significant unmet medical needs in autoimmune diseases.

Cartesian Therapeutics Sets 2025 Strategy for Descartes-08

Cartesian Therapeutics recently announced its strategic priorities for 2025, including the advancement of its mRNA CAR-T cell therapy, Descartes-08, which is under clinical evaluation for myasthenia gravis and other autoimmune diseases. With a strong balance sheet, the company plans to commence a Phase 3 trial for Descartes-08 in the first half of 2025, highlighting its commitment to addressing significant unmet medical needs in the autoimmune space.