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Cartesian Therapeutics (RNAC)
NASDAQ:RNAC

Cartesian Therapeutics (RNAC) AI Stock Analysis

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Cartesian Therapeutics

(NASDAQ:RNAC)

Rating:47Neutral
Price Target:
$9.00
▼(-17.05%Downside)
The company is facing significant financial challenges, with severe issues reflected in its financial statements. Despite technical indicators pointing to a bearish trend, the promising results from the Phase 2b trial offer a glimmer of hope. However, the negative P/E ratio underscores the financial difficulties, making this stock risky.
Positive Factors
Clinical Trial Progress
The initiation of the Phase 3 AURORA trial for Descartes-08 in myasthenia gravis comes on schedule, aligning with prior guidance.
Efficacy and Safety
Descartes-08 has generated compelling open-label Phase 2a and placebo-controlled Phase 2b results, showing deep and durable efficacy with patients.
Financial Position
Cartesian ended 1Q25 with $182.1M in cash and equivalents which the company is guiding as sufficient to fund operations through completion of the Phase 3 AURORA trial and into mid-2027.
Negative Factors
Clinical Trial Risks
Risks include delays in moving candidates through trials and failure to generate favorable clinical data, particularly with Descartes-08 in myasthenia gravis.
Market Perception
There remains significant upside potential in RNAC shares as Descartes-08/15's enabling features vs. DNA CAR T therapies in I&I continue to become better understood by investors.

Cartesian Therapeutics (RNAC) vs. SPDR S&P 500 ETF (SPY)

Cartesian Therapeutics Business Overview & Revenue Model

Company DescriptionSelecta 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 MoneyCartesian 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 shows severe financial distress, with a concerning income statement marked by high operational losses and declining revenues. The balance sheet is weak, evidenced by negative stockholders' equity, and the cash flow situation is poor with negative free cash flow. The company appears heavily reliant on external financing.
Income Statement
32
Negative
Cartesian Therapeutics shows a concerning trend in profitability, with a negative TTM net profit margin of -112.1% and a declining revenue trend. The gross profit margin remains high at 99.4% in the TTM, but the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies and high costs relative to revenue.
Balance Sheet
25
Negative
The company's balance sheet is weak, highlighted by a negative stockholders' equity of -$21.79 million in the TTM, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is also negative. These factors point to potential liquidity issues and high leverage risk, despite having substantial cash reserves.
Cash Flow
40
Negative
Cartesian Therapeutics has a negative free cash flow in the TTM of -$40.43 million, indicating cash outflow concerns. The operating cash flow to net income ratio shows operational cash drain, reflecting inefficiencies. However, significant financing cash flow suggests reliance on external funding to sustain operations.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
34.17M38.91M26.00M110.78M85.08M16.60M
Gross Profit
33.98M38.91M24.45M108.74M85.08M16.60M
EBIT
-52.44M-43.90M-86.42M14.54M-4.60M-56.82M
EBITDA
-40.08M-77.14M-235.06M39.84M-5.16M-65.59M
Net Income Common Stockholders
-38.31M-77.42M-219.71M35.38M-25.69M-68.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
147.81M212.61M76.91M134.60M128.06M138.69M
Total Assets
176.75M435.02M305.05M165.89M159.88M165.44M
Total Debt
35.36M13.98M10.96M37.92M35.28M35.35M
Net Debt
-90.05M-198.63M-65.96M-68.51M-78.78M-103.34M
Total Liabilities
196.32M441.82M745.23M72.06M137.36M183.44M
Stockholders Equity
-19.57M-6.80M-440.18M93.83M22.52M-18.01M
Cash FlowFree Cash Flow
-40.43M-32.77M-51.37M-32.83M-61.47M34.07M
Operating Cash Flow
-30.86M-23.67M-51.16M-31.63M-60.38M34.88M
Investing Cash Flow
-9.21M-8.74M34.61M-15.00M-17.14M-741.00K
Financing Cash Flow
117.37M168.43M-13.14M39.22M52.90M14.43M

Cartesian Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price10.85
Price Trends
50DMA
10.86
Negative
100DMA
14.48
Negative
200DMA
16.52
Negative
Market Momentum
MACD
-0.28
Negative
RSI
53.98
Neutral
STOCH
75.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNAC, the sentiment is Neutral. The current price of 10.85 is above the 20-day moving average (MA) of 9.88, below the 50-day MA of 10.86, and below the 200-day MA of 16.52, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNAC.

Cartesian Therapeutics Risk Analysis

Cartesian Therapeutics disclosed 46 risk factors in its most recent earnings report. Cartesian Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cartesian Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$552.24M-34.26%271.44%26.65%
56
Neutral
$346.87M-27.40%15.40%35.42%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
51
Neutral
$478.84M-79.51%-100.00%10.73%
47
Neutral
$286.41M-938.38%38.82%-645.78%
43
Neutral
$403.03M-56.24%9.22%
41
Neutral
$471.00M-39.06%-48.01%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNAC
Cartesian Therapeutics
10.85
-19.88
-64.69%
ORKA
Oruka Therapeutics
12.54
-8.63
-40.77%
ARCT
Arcturus Therapeutics
12.54
-19.82
-61.25%
ATYR
aTyr Pharma
5.45
3.50
179.49%
VERV
Verve Therapeutics
6.10
0.77
14.45%
AURA
Aura Biosciences Inc
6.29
-0.85
-11.90%

Cartesian Therapeutics Corporate Events

Executive/Board Changes
Cartesian Therapeutics CTO Transition to Consultant Role
Neutral
Apr 29, 2025

On April 29, 2025, Cartesian Therapeutics, Inc. announced that its Chief Technology Officer, Metin Kurtoglu, will end his employment with the company on May 1, 2025. Following this, he will transition to a consulting role from May 1, 2025, to April 30, 2026. The agreements include a separation deal where Dr. Kurtoglu will release any claims against the company in exchange for severance benefits, including 12 months’ salary, a pro-rated bonus, and accelerated vesting of equity awards.

Product-Related AnnouncementsBusiness Operations and Strategy
Cartesian Therapeutics Unveils Promising Phase 2b Trial Results
Positive
Apr 8, 2025

On April 8, 2025, Cartesian Therapeutics announced 12-month efficacy and safety data from its Phase 2b trial of Descartes-08 for generalized myasthenia gravis (MG). The trial demonstrated sustained symptom improvement and a favorable safety profile, supporting outpatient administration. Notably, participants without prior biologic therapies showed the most compelling responses, with significant reductions in MG-ADL scores. The results reinforce Descartes-08’s potential to transform MG treatment, and the company plans to commence a Phase 3 trial in the second quarter of 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.