Enorama Pharma AB (ERMA) AI Stock Analysis

• Market Cap: kr27.30M
• 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): -0.28
• Shares Outstanding: 74,588,684
• 10 Day Avg. Volume: 2,975
• 30 Day Avg. Volume: 4,348
• PEG Ratio: -0.06
• Price to Book (P/B): -5.66
• Price to Sales (P/S): 48.45
• 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: 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: 40 Underperform
• Price Target: kr0.35 ▼(-81.57% Downside)
• Action: Downgraded Date: 03/20/26
• Date: Action: Downgraded 03/20/26

The score is driven primarily by very weak financial performance (declining revenue, widening losses, persistent cash burn, and negative equity), reinforced by bearish technicals with the price far below key moving averages. Valuation offers limited support because the negative P/E reflects ongoing losses and there is no dividend yield data.

Positive Factors

Low leverage / zero reported debt

Zero reported debt is a durable financial strength: it lowers solvency risk and preserves capacity to raise capital or deploy cash for R&D without immediate interest burden. For a clinical-stage pharma, low leverage improves strategic optionality for partnerships or financing.

Focused NRT product pipeline (NIC-101)

A focused pipeline centered on NIC-101 concentrates R&D resources and clinical milestones. Specialization in nicotine replacement therapy aligns with structural demand for tobacco harm reduction, enabling clearer regulatory and commercialization pathways versus a diffuse drug portfolio.

Public listing (Nasdaq OMX AB) provides capital access

Being listed on Nasdaq OMX AB offers ongoing access to public equity, visibility to institutional investors, and regulatory disclosure standards. This structural access increases the company's ability to raise funds for clinical development and partner negotiations over the medium term.

Negative Factors

Sharply declining revenue in 2025

A ~25% revenue decline and unstable top line signal weakening commercial traction or disrupted operations. Persistently falling sales undermines internal funding for trials, increases reliance on external capital, and lengthens timeframes to reach sustainable commercial scale.

Persistent negative operating cash flow

Ongoing negative operating cash flow indicates structural cash burn from operations and R&D. Over 2–6 months this necessitates new financing or severe cost cuts; repeated dilution or disrupted development timelines are likely if cash generation isn't restored.

Negative shareholders' equity and weakened balance sheet

Negative equity is a material structural weakness that elevates financing risk and may limit access to credit or partnership terms. It can force dilutive equity raises or distressed transactions, constraining the firm's ability to fund clinical progression and commercial launches.

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

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Enorama Pharma AB Financial Statement Overview

Summary

Financial performance is very weak: revenue declined sharply in 2025 (~25% YoY), profitability is deeply negative with widening losses, and operating cash flow remains persistently negative and deteriorating. Zero reported debt is a positive, but the shift to negative shareholders’ equity in 2025 materially increases financing risk.

Income Statement

The income statement is very weak. Revenue fell sharply in 2025 (down ~25% YoY) after modest growth in 2024, showing an unstable top line. Profitability is deeply negative: 2025 posted a large negative gross profit and extremely weak margins, with net losses widening versus 2024. While losses were already significant in prior years, the 2025 deterioration in both revenue and margins is a clear negative signal.

Balance Sheet

Leverage is low (total debt reported at zero in 2024–2025), which is a key strength. However, the balance sheet weakened materially in 2025 as shareholders’ equity turned negative, which reduces financial flexibility and raises funding risk. Total assets also declined versus 2024, reinforcing the picture of a shrinking capital base despite low reported debt.

Cash Flow

Cash flow is very weak and trending worse. Operating cash flow is consistently negative across the full period and deteriorated further in 2025 versus 2024, indicating ongoing cash burn. Free cash flow was negative in prior years and is shown as zero in 2025 (with a -100% growth rate), suggesting either a sharp change in spending patterns or data volatility—either way, underlying operating cash generation remains firmly negative.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.74M	15.77M	1.36M	6.85M	11.04M
Gross Profit	-62.12M	3.70M	-3.90M	-616.00K	2.13M
EBITDA	-61.65M	-20.41M	-43.05M	-37.22M	-26.28M
Net Income	-75.14M	-43.81M	-44.61M	-41.78M	-28.54M
Balance Sheet
Total Assets	8.26M	15.89M	34.38M	48.72M	50.93M
Cash, Cash Equivalents and Short-Term Investments	3.04M	2.08M	6.15M	4.14M	12.20M
Total Debt	0.00	0.00	436.00K	1.91M	3.79M
Total Liabilities	31.71M	8.09M	14.85M	17.20M	29.58M
Stockholders Equity	-23.45M	7.80M	19.54M	31.52M	21.35M
Cash Flow
Free Cash Flow	0.00	-35.70M	-41.35M	-32.96M	-31.99M
Operating Cash Flow	-59.26M	-35.70M	-41.35M	-32.96M	-30.16M
Investing Cash Flow	0.00	0.00	0.00	0.00	-1.82M
Financing Cash Flow	50.69M	35.29M	41.86M	25.34M	39.51M

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%
ENZY	45 Neutral	kr555.86M	-8.89	―	―	19.17%	24.53%
ERMA	40 Underperform	kr27.30M	-1.77	―	―	―	―