Enorama Pharma AB (ERMA) AI Stock Analysis

• Market Cap: kr114.87M
• Dividend Yield: N/A
• Average Volume (3M): 4.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.18
• Shares Outstanding: 74,588,684
• 10 Day Avg. Volume: 2,975
• 30 Day Avg. Volume: 4,348
• PEG Ratio: 0.11
• Price to Book (P/B): 22.84
• Price to Sales (P/S): 11.30
• P/FCF Ratio: -4.99
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: kr1.50 ▼(-21.47% Downside)

The score is driven primarily by weak financial performance (shrinking TTM revenue, sustained losses, and heavy negative free cash flow), which outweighs the benefit of having no debt. Technicals add further pressure with a clear downtrend below major moving averages and negative MACD; valuation provides limited support given the negative P/E and no dividend yield data.

Positive Factors

Low leverage / no debt

Having no recorded debt is a durable financial strength: it reduces fixed interest costs and preserves operational flexibility. Over the next several months this lowers default risk and gives management optionality to prioritize R&D or seek non-debt funding without immediate interest burdens.

Focused NRT product pipeline

A focused business model centered on nicotine replacement therapy (NIC-101) creates a clear strategic roadmap and concentrated R&D efforts. This specialization supports regulatory focus, potential IP depth and targeted commercialization plans, making competitive positioning more durable vs. scattered pipelines.

Lean operating footprint

A very small headcount implies a low fixed-cost base and operational nimbleness, which can materially extend runway versus larger peers. Over a multi-month horizon this helps conserve cash, allows focused spending on clinical milestones, and reduces near-term dilution pressure if managed prudently.

Negative Factors

Sharp revenue decline

A sustained ~68% drop in trailing revenue signals weakened commercial traction or disrupted sales channels. Lower recurring top-line undermines scale economics and margin recovery, increasing reliance on external funding and heightening execution risk for product development and market roll-out over the next several months.

Large, persistent cash burn

Deep negative operating and free cash flows are a structural concern: they erode cash reserves rapidly and force repeated capital raises or strategic cuts. This lasting cash-burn profile constrains investment in trials or commercialization and raises dilution and refinancing risk absent material changes to operations or funding.

Negative shareholders' equity

Equity turning negative reflects accumulated losses and weakens the balance sheet cushion. This durable impairment limits access to debt, can reduce counterparty confidence and heighten insolvency risk absent fresh capital, constraining strategic options and increasing dependence on external funding sources.

Enorama Pharma AB Business Overview & Revenue Model

Company Description

Enorama Pharma AB (publ), a pharmaceutical company, develops, manufactures, and sells medicated chewing gum containing proven generic substances in Sweden. It offers nicotine chewing gum for smoking cessation and medical cannabis chewing gums for non-pharma applications, as well as for other applications, such as oromucosal drug delivery and allergic rhinitis. The company is based in Malmö, Sweden.

How the Company Makes Money

Enorama Pharma AB Financial Statement Overview

Summary

Financial quality is weak: TTM revenue declined sharply (~-67.9%), profitability remains deeply negative (net margin ~-21.1%), and cash burn is significant with TTM operating/free cash flow at about -47.8M. While debt is 0, TTM equity turning negative (-4.6M) increases funding and financial flexibility risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell sharply to 3.6M (down ~67.9%), and profitability is weak with negative gross profit and deeply negative operating and net margins (net margin ~-21.1%). While 2024 showed better gross profit (positive gross margin ~23.5%) on higher revenue (15.8M, up ~10.6%), the business has remained consistently loss-making across periods, with losses worsening again in the TTM period.

Balance Sheet

A key positive is the lack of financial leverage in the latest periods (total debt at 0 in 2024 and TTM). However, the balance sheet weakened materially as stockholders’ equity turned negative in TTM (-4.6M) versus positive equity in 2024 (7.8M), signaling accumulated losses and reduced financial flexibility. Returns on equity are meaningfully negative, consistent with ongoing losses.

Cash Flow

Cash generation is a major concern: operating cash flow and free cash flow are persistently negative, with TTM operating/free cash flow at -47.8M (worse than -35.7M in 2024). Cash burn remains elevated relative to earnings (losses accompanied by large negative operating cash flow), increasing reliance on external funding or balance-sheet actions to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.63M	15.77M	1.36M	6.85M	11.04M	2.15M
Gross Profit	-23.84M	3.70M	-3.90M	-616.00K	2.13M	2.37M
EBITDA	-47.98M	-20.41M	-43.05M	-37.22M	-26.28M	-22.69M
Net Income	-76.57M	-43.81M	-44.61M	-41.78M	-28.54M	-23.90M
Balance Sheet
Total Assets	12.57M	15.89M	34.38M	48.72M	50.93M	40.91M
Cash, Cash Equivalents and Short-Term Investments	6.56M	2.08M	6.15M	4.14M	12.20M	4.73M
Total Debt	0.00	0.00	436.00K	1.91M	3.79M	5.71M
Total Liabilities	17.22M	8.09M	14.85M	17.20M	29.58M	39.13M
Stockholders Equity	-4.65M	7.80M	19.54M	31.52M	21.35M	1.78M
Cash Flow
Free Cash Flow	-47.77M	-35.70M	-41.35M	-32.96M	-31.99M	-26.83M
Operating Cash Flow	-47.77M	-35.70M	-41.35M	-32.96M	-30.16M	-23.00M
Investing Cash Flow	0.00	0.00	0.00	0.00	-1.82M	-3.84M
Financing Cash Flow	40.87M	35.29M	41.86M	25.34M	39.51M	16.96M

Enorama Pharma AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ERMA	43 Neutral	kr114.87M	-1.29	―	―	―	―
ENZY	38 Underperform	kr478.19M	-8.83	―	―	19.17%	24.53%