Rezolute (RZLT) AI Stock Analysis

• Market Cap: $190.08M
• Dividend Yield: N/A
• Average Volume (3M): 720.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: N/A
• EPS Growth: -10.43%
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -1.22
• Shares Outstanding: 60,535,423
• 10 Day Avg. Volume: 621,133
• 30 Day Avg. Volume: 720,742
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -3.40
• 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: $12.50
• Price Target Upside: 298.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Rezolute's overall stock score reflects significant financial challenges and operational inefficiencies, partially offset by positive corporate developments and strategic improvements. While the stock has potential upside due to recent progress in clinical studies and strategic appointments, its financial health and technical indicators suggest cautious optimism.

Positive Factors

Efficacy Recognition

The Breakthrough Therapy designation for ersodetug reflects the FDA's recognition of its promising efficacy in addressing a strong unmet medical need.

Financial Stability

RZLT's cash reserve of $117.8M provides financial stability and supports operations through 2Q26.

Regulatory Progress

The clinical hold on ersodetug was lifted, which clears the path for future development of the drug.

Negative Factors

Regulatory Concerns

There are potential drawbacks if RZLT files for FDA approval without any US enrollment.

Safety Concerns

The FDA used to have an age restriction for U.S. patients to be 12 years and older due to safety concerns, although the agency lifted such restriction.

Rezolute Business Overview & Revenue Model

Company Description

Rezolute, Inc., a clinical stage biopharmaceutical company, develops transformative therapies for metabolic diseases associated with chronic glucose imbalance in the United States. The company's lead product candidate is RZ358, a human monoclonal antibody that is in Phase 2b clinical trial for the treatment of congenital hyperinsulinism, an ultra-rare pediatric genetic disorder. It is also developing RZ402, a selective and potent plasma kallikrein inhibitor, which is in Phase 1 clinical trial for the chronic treatment of diabetic macular edema. The company was formerly known as AntriaBio, Inc. and changed its name to Rezolute, Inc. in December 2017. Rezolute, Inc. was founded in 2010 and is headquartered in Redwood City, California.

How the Company Makes Money

Rezolute generates revenue primarily through the development and potential commercialization of its proprietary drug candidates. The company aims to profit by advancing its products through clinical trials and obtaining regulatory approvals, leading to potential licensing agreements, partnerships, or direct sales. Revenues may also be supplemented by milestone payments or royalties from collaborations with larger pharmaceutical companies, which can provide financial support and distribution channels for their therapies. Currently, as a clinical-stage company, Rezolute may also rely on funding from investors, grants, and public offerings to support its research and development activities until its products reach the market.

Rezolute Financial Statement Overview

Summary

Rezolute faces significant financial challenges with limited revenue and substantial operational losses. The company maintains a strong equity position with low debt levels but struggles with negative cash flow and profitability.

Income Statement

Rezolute's revenue growth has been minimal with minor revenue in TTM after years of none, reflecting limited commercial success. The company has negative profitability margins with a net profit margin of -122639.66% and an EBIT margin of -94665.52% in TTM, indicating high operational losses relative to revenue. There is no visible trend of improvement in profitability as both EBIT and net income have consistently been negative.

Balance Sheet

Rezolute shows a strong equity position with an equity ratio of 88.90% in TTM, indicating low financial leverage. The debt-to-equity ratio is minimal at 0.02, suggesting low debt levels relative to equity. However, the return on equity is negative at -71.44%, reflecting continued losses impacting shareholder returns.

Cash Flow

The company's free cash flow is negative, and the operating cash flow to net income ratio is 0.89, evidencing cash burn. However, financing activities have been a source of cash, indicating reliance on external funding. Free cash flow growth remains negative, reflecting operational inefficiencies.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
58.00K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
42.00K	-36.00K	-382.00K	-256.00K	-303.00K	-18.00K
	EBIT
-54.91M	-70.42M	-55.99M	-41.84M	-22.89M	-20.52M
	EBITDA
-73.18M	-68.42M	-51.41M	-41.83M	-22.88M	-20.32M
	Net Income Common Stockholders
-71.13M	-68.46M	-51.79M	-38.78M	-21.28M	-20.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.94K	126.87M	101.90M	150.41M	41.05M	9.96M
	Total Assets
8.89K	132.74M	123.72M	152.42M	42.61M	10.96M
	Total Debt
0.00	2.23M	2.48M	188.00K	14.42M	410.00K
	Net Debt
-6.94K	-68.17M	-13.56M	-150.22M	-26.63M	-9.54M
	Total Liabilities
8.85K	11.73M	7.55M	2.95M	16.51M	3.60M
	Stockholders Equity
36.00	121.00M	116.17M	149.47M	26.10M	7.37M
Cash Flow		Free Cash Flow
-63.44M	-57.37M	-44.63M	-39.62M	-20.44M	-24.17M
	Operating Cash Flow
-63.44M	-57.37M	-44.48M	-39.62M	-20.44M	-24.17M
	Investing Cash Flow
-9.61M	48.70M	-101.46M	0.00	0.00	0.00
	Financing Cash Flow
69.48M	63.03M	11.57M	148.98M	51.53M	22.55M

Rezolute Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.14
• 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 RZLT, the sentiment is Neutral. The current price of 3.14 is above the 20-day moving average (MA) of 2.76, below the 50-day MA of 3.57, and below the 200-day MA of 4.53, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RZLT.

Rezolute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	62 Neutral	$186.77M	―	-4.07%	―	2752.05%	87.57%
Sector *	50 Neutral	$5.14B	3.10	-40.94%	2.95%	17.94%	2.00%
RZLT	50 Neutral	$190.08M	―	-74.36%	―	―	-10.43%
ACIU	45 Neutral	$146.44M	―	-36.38%	―	88.63%	18.78%
TNGX	38 Underperform	$139.46M	―	-57.58%	―	15.18%	-9.47%
DMAC	36 Underperform	$151.71M	―	-53.27%	―	―	2.53%
IKT	36 Underperform	$141.25M	―	-52.00%	―	-100.00%	38.72%

Rezolute Corporate Events

Rezolute Appoints Erik Harris to Board of Directors

Rezolute, Inc. announced the election of Erik Harris to its Board of Directors, effective March 25, 2025. Mr. Harris, deemed independent by Nasdaq standards, brings extensive experience from his roles at Ultragenyx Pharmaceutical Inc. and other life science companies. His appointment is expected to enhance Rezolute’s strategic direction, leveraging his commercial and management expertise. Mr. Harris will receive standard board compensation, including stock options, and his role is anticipated to strengthen the company’s industry positioning.

Rezolute Advances SunRIZE Study for Hypoglycemia Treatment

Rezolute, Inc. announced that outcomes from a Data Monitoring Committee (DMC) review of the open-label arm of its Phase 3 sunRIZE study showed that the targeted drug concentrations for ersodetug were safely reached in infants under one year old. This approval allows the enrollment of infants into the double-blind portion of the study, which aims to treat hypoglycemia due to congenital hyperinsulinism. The enrollment is expected to complete in the second quarter of 2025, with topline results anticipated by the end of the year. The interim analysis will guide the sample size adequacy and may adjust it to enhance statistical confidence.