RenovoRx (RNXT) AI Stock Analysis

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RenovoRx

(NASDAQ:RNXT)

Rating:49Neutral

Price Target:―

RenovoRx's overall stock score reflects significant financial instability with persistent losses and negative cash flows. Despite technical analysis suggesting some short-term upward momentum, the company's valuation is weakened by a negative P/E ratio and lack of profitability. The absence of earnings call data and corporate events limits further insights into potential improvements, maintaining a cautious outlook on its stock performance.

Positive Factors

Clinical Trials

Positive data from the first interim analysis demonstrated an overall survival of approximately 21.5 months, compared to 15.5 months in the control arm, with a favorable safety profile.

Commercialization

RenovoRx is actively commercializing its FDA-cleared RenovoCath as a standalone proprietary medical device, and has provided strong guidance for sequential quarterly revenue growth in 2025.

Market Potential

RenovoRx has a significant market potential with its focus on Locally Advanced Pancreatic Cancer, one of the deadliest cancers with very poor prognosis and outcomes.

Negative Factors

Earnings

The company reported a net loss of $0.40 per diluted share for the fourth quarter.

Financial Performance

For 1Q25, the company reported $197,000 in revenue and a net loss of $0.08 per diluted share, compared to an estimate of $335,000 and a net loss of $0.07 per diluted share.

Stock Valuation

RNXT, with a current valuation, is considered undervalued and could be attractive.

RenovoRx (RNXT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$51.93M

Dividend YieldN/A

Average Volume (3M)167.91K

Price to Earnings (P/E)―

Beta (1Y)1.47

Revenue GrowthN/A

EPS Growth61.43%

CountryUS

Employees10

SectorHealthcare

Sector Strength39

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.08

Shares Outstanding36,572,230

10 Day Avg. Volume259,019

30 Day Avg. Volume167,909

Financial Highlights & Ratios

PEG Ratio-0.50

Price to Book (P/B)3.21

Price to Sales (P/S)0.00

P/FCF Ratio-3.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.38

Price Target Upside278.87% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

RenovoRx Business Overview & Revenue Model

Company DescriptionRenovoRx, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapies for the treatment of solid tumors. Its lead product candidate is RenovoGem, a drug and device combination consisting of intra-arterial gemcitabine and RenovoCath that is in Phase III clinical trials for the locally advanced pancreatic cancer. RenovoRx, Inc. was founded in 2009 and is headquartered in Los Altos, California.

How the Company Makes MoneyRenovoRx generates revenue primarily through the development and commercialization of its RenovoTAMP therapy platform. The company aims to monetize its technology through licensing agreements with pharmaceutical companies and healthcare institutions. Additionally, RenovoRx seeks to establish partnerships and collaborations to further develop its therapeutic applications, which can lead to milestone payments and royalties. The company's financial strategy may also include seeking funding through public and private investments to support ongoing research and development efforts.

RenovoRx Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q1-2025)

% Change Since: 27.93%|

Next Earnings Date:Aug 13, 2025

Earnings Call Sentiment Positive

The earnings call was predominantly positive, with strong clinical trial results, better-than-expected first-quarter revenue, and robust demand for RenovoCath. However, there were some increases in operating expenses and limited international market presence.

Q1-2025 Updates

Positive Updates

Encouraging Clinical Trial Results

The ongoing Phase 3 TIGeR-PaC clinical trial showed that patients experienced median overall survival of 16 months with the targeted approach, compared to 10 months with standard chemotherapy. Additionally, there was a 65% reduction in adverse events such as nausea and fatigue.

First Quarter Revenue Exceeds Expectations

RenovoRx reported approximately $200,000 in revenue from the RenovoCath device, exceeding initial expectations and marking the company's first quarter of commercial sales.

Strong Market Interest and Demand

There is strong organic demand for RenovoCath, with more than 10 new medical institutions initiating purchase orders and repeat orders from initial customers.

New U.S. Patent Issued

RenovoRx announced the issuance of a new U.S. patent for their TAMP therapy platform, further enhancing their intellectual property portfolio.

Financial Stability

The company has $14.6 million in cash, expected to fully fund the RenovoCath scale-up and the Phase 3 TIGeR-PaC clinical trial.

Negative Updates

Increased Operating Expenses

Research and development expenses increased by $0.4 million to $1.7 million, and selling, general, and administrative expenses rose by $0.4 million to $1.6 million, primarily due to increased personnel costs and commercialization efforts.

Limited Current International Market Presence

Currently, there is no CE mark for RenovoCath, and international market expansion is not expected until later in the year or potentially next year.

Company Guidance

During the RenovoRx Q1 2025 financial call, the company highlighted several key metrics and guidance for the future. RenovoRx reported its first revenue of approximately $200,000 from the sale of its FDA-cleared RenovoCath device, surpassing initial expectations. This revenue marks the beginning of commercial sales for the device, which is part of a broader strategy to expand its market presence, targeting a potential U.S. sales opportunity of $400 million annually. The ongoing Phase 3 TIGeR-PaC clinical trial demonstrated promising results, with patients showing a median overall survival of 16 months using the targeted therapy, compared to 10 months with standard chemotherapy, and a significant 65% reduction in adverse events. Research and development expenses increased to $1.7 million from $1.3 million in Q1 2024, driven by enhanced employee compensation and manufacturing costs, while selling, general, and administrative expenses rose to $1.6 million from $1.2 million. The company has $14.6 million in cash, which is expected to fund ongoing clinical trials and commercial scale-up. Looking forward, RenovoRx anticipates continued revenue growth and is exploring strategic partnerships to enhance market penetration.

RenovoRx Financial Statement Overview

Summary

RenovoRx faces significant financial challenges with no revenue generation and consistent losses. The balance sheet shows some improvements in equity position, but the company remains highly dependent on external financing, posing risks to its financial stability.

Income Statement

Very Negative

RenovoRx has shown consistent negative net income and EBIT over the years, with no revenue generated. The company's lack of revenue growth limits its ability to improve profitability, leading to poor performance in income statement metrics.

Balance Sheet

Negative

The company has managed to reduce its liabilities over the years, resulting in a positive stockholders' equity as of the latest TTM period. However, the absence of revenue and reliance on equity financing pose risks to financial stability.

Cash Flow

Very Negative

Operating cash flows remain negative with no free cash flow generation, indicating a heavy reliance on financing activities to sustain operations. While financing cash flow has been positive, it highlights dependence on external funding.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	-6.00K	-9.00K	0.00	0.00
	EBIT
-10.12M	-11.40M	-9.95M	-5.67M	-3.20M	-3.90M
	EBITDA
-6.94M	-11.39M	-9.94M	-5.66M	0.00	0.00
	Net Income Common Stockholders
-9.16M	-10.23M	-9.77M	-7.10M	-4.38M	-3.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10M	1.17M	6.44M	15.19M	1.79M	2.10M
	Total Assets
0.00	1.47M	7.26M	16.29M	1.91M	2.27M
	Total Debt
0.00	0.00	0.00	0.00	2.79M	12.39M
	Net Debt
2.10M	-1.17M	-6.44M	-15.19M	995.00K	10.29M
	Total Liabilities
0.00	4.47M	1.10M	938.00K	16.57M	13.20M
	Stockholders Equity
1.47M	-3.00M	6.16M	15.35M	-14.66M	-10.93M
Cash Flow		Free Cash Flow
-8.75M	-10.26M	-8.81M	-5.93M	-3.53M	-3.35M
	Operating Cash Flow
-8.75M	-10.26M	-8.81M	-5.92M	-3.53M	-3.35M
	Investing Cash Flow
0.00	2.03M	-2.03M	-15.00K	0.00	-1.00K
	Financing Cash Flow
15.09M	5.01M	42.00K	19.33M	3.20M	0.00

RenovoRx Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.42

Price Trends

50DMA

1.05

Positive

100DMA

1.10

Positive

200DMA

1.11

Positive

Market Momentum

MACD

0.10

Negative

RSI

70.85

Negative

STOCH

87.88

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNXT, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.05, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNXT.

RenovoRx Risk Analysis

RenovoRx disclosed 67 risk factors in its most recent earnings report. RenovoRx 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 1 New Risks

Risk Factors Summary Q3, 2024

RenovoRx Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%
RNXT	49 Neutral	$51.93M	―	-136.13%	―	―	61.43%
SRZN	43 Neutral	$69.61M	―	-456.32%	―	―	0.13%
TPST	39 Underperform	$24.67M	―	-282.07%	―	―	-220.54%
ALXO	39 Underperform	$29.86M	―	-102.99%	―	―	30.37%
RNTX	38 Underperform	$42.76M	―	-86.78%	―	―	-2.37%
INKT	38 Underperform	$28.58M	―	78.50%	―	―	55.52%

* Healthcare Sector Average

Performance Comparison

RNXT

RenovoRx

1.37

0.30

28.04%

TPST

Tempest Therapeutics

6.81

-36.87

-84.41%

RNTX

Rein Therapeutics

2.02

-1.11

-35.46%

ALXO

ALX Oncology Holdings

0.55

-7.82

-93.43%

SRZN

Surrozen

8.40

-2.75

-24.66%

INKT

MiNK Therapeutics

7.13

-2.82

-28.34%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.