Rezolute (RZLT) AI Stock Analysis

• Market Cap: $325.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: -10.43%
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 60
• Industry: Biotechnology
• EPS (TTM): -1.22
• Shares Outstanding: 81,322,350
• 10 Day Avg. Volume: 2,718,836
• 30 Day Avg. Volume: 1,406,556
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -6.89K
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.86
• Price Target Upside: 212.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Rezolute's overall stock score is impacted by its challenging financial performance, with persistent losses and operational inefficiencies. However, technical analysis shows moderate upward momentum, and positive corporate events, including significant funding and promising clinical trial progress, offer potential upside. Valuation remains weak with negative earnings, suggesting cautious optimism for the stock's future.

Positive Factors

Clinical Trials

The independent data monitoring committee recommends continuation of the sunRIZE trial without sample size adjustments, indicating confidence in the trial's design.

Financial Position

An equity financing with healthcare-focused institutional investors raised $90M in gross proceeds, which should extend the runway into mid-CY27.

Regulatory Approval

Rezolute has secured a second Breakthrough Therapy Designation for ersodetug, which reflects the FDA's recognition of its promising efficacy in treating tumor-induced hyperinsulinism.

Negative Factors

Financial Challenges

Risks include financial challenges, as the company is not generating revenue and has capital needs exceeding the current cash balance.

Market Uncertainties

The inclusion of the lower dose was to ensure flexibility in case any unexpected safety signals emerge, since the Ph3 study is enrolling more and younger patients than Ph2b, and with a longer treatment period.

Regulatory Concerns

The FDA lifted the age restriction for U.S. patients to be 12 years and older due to safety concerns.

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 typical in biotechnology, with minimal revenue growth and substantial operational losses. The company maintains a strong equity position with low debt levels, but struggles with negative cash flow and profitability, reflecting operational inefficiencies.

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

Rezolute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.12
• 50DMA: Positive
• 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 Positive. The current price of 4.12 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 3.40, and below the 200-day MA of 4.51, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 74.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RZLT.

Rezolute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	64 Neutral	$303.36M	―	-0.23%	―	3087.25%	97.11%
RZLT	53 Neutral	$325.29M	―	-74.36%	―	―	-10.43%
Sector *	52 Neutral	$5.35B	3.83	-41.61%	2.85%	17.10%	1.22%
IKT	46 Neutral	$167.27M	―	-52.00%	―	-100.00%	38.72%
ACIU	45 Neutral	$170.18M	―	-43.31%	―	95.23%	15.55%
DMAC	42 Neutral	$181.28M	―	-53.27%	―	―	2.53%
TNGX	38 Underperform	$163.24M	―	-57.58%	―	15.18%	-9.47%

Rezolute Corporate Events

Rezolute Closes $96.9 Million Underwritten Offering

On April 25, 2025, Rezolute, Inc. announced the closing of its underwritten offering, raising approximately $96.9 million through the sale of 24,940,769 shares of common stock and pre-funded warrants. The funds will be used for research and development, corporate expenses, and working capital. The offering saw participation from new and existing investors and was managed by Guggenheim Securities, with additional support from other financial institutions. Furthermore, a separate private placement is expected to close by May 7, 2025, potentially raising an additional $4.2 million.

Spark’s Take on RZLT Stock

According to Spark, TipRanks’ AI Analyst, RZLT is a Neutral.

Rezolute’s overall stock score is primarily influenced by its challenging financial performance and weak valuation metrics. The company’s strong equity position and recent positive corporate developments provide some optimism, but the overall outlook remains cautious due to persistent losses and operational inefficiencies.

To see Spark’s full report on RZLT stock, click here.

Rezolute Announces Pricing of Direct Stock Offering

On April 23, 2025, Rezolute, Inc. announced the pricing of a registered direct offering involving the issuance of 20,786,923 shares of common stock and pre-funded warrants to purchase up to 6,905,385 shares, expected to close on April 24, 2025. The offering, managed by Guggenheim Securities, aims to raise approximately $84.2 million, potentially increasing to $96.9 million if additional options are exercised, with proceeds intended for research, development, and general corporate purposes.

Spark’s Take on RZLT Stock

According to Spark, TipRanks’ AI Analyst, RZLT is a Neutral.

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.

To see Spark’s full report on RZLT stock, click here.

Rezolute Receives Positive DMC Recommendation for Phase 3 Study

On April 23, 2025, Rezolute, Inc. announced a positive recommendation from an independent Data Monitoring Committee (DMC) to continue its Phase 3 sunRIZE study without increasing the sample size. This decision supports the company’s initial assumptions about the study’s design and efficacy, with enrollment expected to complete in May 2025 and topline results anticipated by December 2025. The study is evaluating the efficacy and safety of ersodetug in patients with congenital hyperinsulinism, a condition leading to recurrent hypoglycemia. The continuation of the study as planned suggests confidence in ersodetug’s potential as a best-in-class treatment for hyperinsulinism.

Spark’s Take on RZLT Stock

According to Spark, TipRanks’ AI Analyst, RZLT is a Neutral.

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.

To see Spark’s full report on RZLT stock, click here.

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.