Cartesian Therapeutics (RNAC) AI Stock Analysis

• Market Cap: $279.53M
• Dividend Yield: N/A
• Average Volume (3M): 72.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 38.82%
• EPS Growth: -645.78%
• Country: US
• Employees: 66
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.68
• Shares Outstanding: 25,954,290
• 10 Day Avg. Volume: 80,736
• 30 Day Avg. Volume: 72,647
• PEG Ratio: -0.02
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.98
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: $37.17
• Price Target Upside: 257.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 47 Neutral
• Price Target: $9.00 ▼(-13.54%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 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
34.17M	38.91M	26.00M	110.78M	85.08M	16.60M
	Gross Profit
33.98M	38.91M	24.45M	108.74M	85.08M	16.60M
	EBIT
-52.44M	-43.90M	-86.42M	14.54M	-4.60M	-56.82M
	EBITDA
-40.08M	-77.14M	-235.06M	39.84M	-5.16M	-65.59M
	Net Income Common Stockholders
-38.31M	-77.42M	-219.71M	35.38M	-25.69M	-68.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
180.43M	212.61M	76.91M	134.60M	128.06M	138.69M
	Total Assets
409.13M	435.02M	305.05M	165.89M	159.88M	165.44M
	Total Debt
14.07M	13.98M	10.96M	37.92M	35.28M	35.35M
	Net Debt
-166.37M	-198.63M	-65.96M	-68.51M	-78.78M	-103.34M
	Total Liabilities
430.92M	441.82M	745.23M	72.06M	137.36M	183.44M
	Stockholders Equity
-21.79M	-6.80M	-440.18M	93.83M	22.52M	-18.01M
Cash Flow		Free Cash Flow
-40.43M	-32.77M	-51.37M	-32.83M	-61.47M	34.07M
	Operating Cash Flow
-30.86M	-23.67M	-51.16M	-31.63M	-60.38M	34.88M
	Investing Cash Flow
-9.21M	-8.74M	34.61M	-15.00M	-17.14M	-741.00K
	Financing Cash Flow
117.37M	168.43M	-13.14M	39.22M	52.90M	14.43M

Cartesian Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10.41 is above the 20-day moving average (MA) of 9.91, below the 50-day MA of 10.73, and below the 200-day MA of 16.49, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 68.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNAC.

Cartesian Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VERV	58 Neutral	$569.18M	―	-34.26%	―	271.44%	26.65%
ARCT	56 Neutral	$349.86M	―	-27.40%	―	15.40%	35.42%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
ATYR	51 Neutral	$489.52M	―	-79.51%	―	-100.00%	10.73%
RNAC	47 Neutral	$279.53M	―	-938.38%	―	38.82%	-645.78%
AURA	43 Neutral	$432.17M	―	-56.24%	―	―	9.22%
ORKA	41 Neutral	$493.84M	―	-39.06%	―	―	-48.01%

Cartesian Therapeutics Corporate Events

Cartesian Therapeutics CTO Transition to Consultant Role

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.

Cartesian Therapeutics Unveils Promising Phase 2b Trial Results

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.