Modus Therapeutics Holding AB (MODTX) AI Stock Analysis

• Market Cap: kr37.83M
• Dividend Yield: N/A
• Average Volume (3M): 841.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: N/A
• EPS Growth: -19.35%
• Country: SE
• Employees: 2
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 121,628,494
• 10 Day Avg. Volume: 409,277
• 30 Day Avg. Volume: 841,432
• PEG Ratio: 0.07
• Price to Book (P/B): 30.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.43
• 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: kr0.30 ▼(-0.33% Downside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

The score is driven primarily by weak financial performance—no revenue, ongoing losses, and continued cash burn—combined with a sharply reduced equity cushion that elevates funding/dilution risk. Technicals are not supportive of a strong uptrend (below key longer-term moving averages with negative MACD), and valuation is constrained by negative earnings and no dividend yield.

Positive Factors

Very low leverage

Having no recorded debt is a durable financial strength: it reduces immediate bankruptcy risk, lowers fixed financing costs, and preserves flexibility to structure future partner deals or equity raises. For a pre-revenue biotech, low leverage supports optionality during long development timelines.

Improving cash burn

Sustained reduction in operating cash burn indicates better cost discipline and modest operational efficiency gains. Over a multi-quarter horizon this extends runway, reduces near-term financing frequency, and increases the chance management can progress programs further before dilutive capital events.

Focused R&D and partner strategy

A concentrated therapeutic focus combined with an explicit partnering strategy is a durable business model for small biotechs: it builds deep domain expertise, improves attractiveness to larger pharma, and allows the company to de-risk late-stage costs by out-licensing or co-developing assets rather than self-funding full commercialization.

Negative Factors

Pre-revenue with persistent losses

No revenue and repeated operating losses leave the company dependent on external capital to progress clinical programs. Over months this structural funding need increases dilution risk and constrains strategic choices, limiting the ability to scale operations or self-fund pivotal trials without partners.

Eroded equity cushion

A sharply reduced equity base is a durable weakness: it reflects cumulative losses and leaves little capital buffer against adverse events. This materially raises the probability of near-term fundraising, increases dilution risk, and weakens negotiating leverage with partners or investors.

Extremely small operating scale

A two-person headcount is a structural constraint on execution: internal capacity for clinical program management, regulatory work, and commercial planning is minimal. Reliance on contractors and partners raises execution risk, slows program cadence, and can increase long-term costs and coordination complexity.

Modus Therapeutics Holding AB Business Overview & Revenue Model

Company Description

Modus Therapeutics Holding AB (publ), a biotechnology company, develops a treatment for sepsis and septic shock in Sweden. Its lead product is Sevuparin, a polysaccharide to treat patients with sepsis and septic shock, which is under Phase Ib clinical study. The company was founded in 2011 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Modus Therapeutics generates revenue through the development and commercialization of its drug candidates. The company's primary revenue streams include licensing agreements, where it partners with larger pharmaceutical companies to co-develop and market its therapies, and milestone payments received as drug candidates progress through clinical trials and regulatory approvals. Additionally, Modus may earn royalties on sales of successfully commercialized products. The company also engages in research collaborations and may receive grants or funding from governmental or non-profit organizations to support its research and development activities.

Modus Therapeutics Holding AB Financial Statement Overview

Summary

Pre-revenue profile with persistent operating losses and ongoing cash burn. Debt is currently minimal (SEK 0 in 2023–2024), but the equity base deteriorated sharply in 2024 (down to ~SEK 2.1m), increasing financing/dilution risk despite a modest improvement in burn versus prior years.

Income Statement

The company reports no revenue across the entire period provided, consistent with a pre-commercial biotech profile. Losses are persistent and sizable (EBIT roughly -SEK 16–21m in 2021–2024, with a larger -SEK 43.6m loss in 2019), indicating ongoing R&D and overhead spend without an offsetting top line. There is some improvement from the 2021 loss level to 2024, but profitability remains deeply negative and visibility into operating leverage is limited without revenue.

Balance Sheet

Leverage is currently low with total debt at SEK 0 in 2023–2024, which reduces financial risk. However, the equity base has eroded sharply (stockholders’ equity fell from SEK 17.7m in 2023 to SEK 2.1m in 2024), signaling heavy cumulative losses and a thinner capital cushion. Historically, the balance sheet has also shown strain (negative equity in 2019 and 2022), which highlights dilution/recapitalization risk if cash needs persist.

Cash Flow

Cash burn is ongoing: operating cash flow and free cash flow are consistently negative, though burn improved in 2024 (about -SEK 14.7m) versus 2023 (about -SEK 16.7m) and 2022 (about -SEK 21.7m). Free cash flow tracks net income closely (free cash flow to net income ~1x), suggesting losses are largely cash-based rather than accounting-driven. The key weakness is the continued need for external funding absent revenue, even if the near-term burn rate has moderated.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-15.29M	-15.84M	2.00K	-18.01M	-20.69M	-6.02M
Net Income	-15.26M	-15.54M	-17.90M	-18.32M	-20.69M	-6.02M
Balance Sheet
Total Assets	6.17M	4.88M	20.04M	11.27M	21.19M	7.49M
Cash, Cash Equivalents and Short-Term Investments	5.32M	4.38M	19.06M	10.42M	20.65M	7.34M
Total Debt	5.00M	0.00	0.00	11.50M	0.00	26.00K
Total Liabilities	6.84M	2.75M	2.36M	13.86M	5.46M	496.00K
Stockholders Equity	-678.00K	2.14M	17.68M	-2.58M	15.73M	7.00M
Cash Flow
Free Cash Flow	-11.02M	-14.68M	-16.68M	-21.72M	-16.08M	-7.23M
Operating Cash Flow	-11.02M	-14.68M	-16.68M	-21.72M	-16.08M	-7.23M
Investing Cash Flow	0.00	0.00	0.00	0.00	-50.00K	0.00
Financing Cash Flow	5.00K	0.00	25.32M	11.50M	29.43M	13.20M

Modus Therapeutics Holding AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 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 SE:MODTX, the sentiment is Neutral. The current price of 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.32, and below the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 68.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MODTX.

Modus Therapeutics Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXTCL	52 Neutral	kr169.76M	-3.45	-52.45%	―	2.56%	52.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XINT	49 Neutral	kr248.91M	-4.51	―	―	-7.68%	17.93%
ELIC	49 Neutral	kr304.32M	-15.19	-48.30%	―	―	52.96%
MODTX	43 Neutral	kr37.83M	-1.37	-166.94%	―	―	-19.35%
ISOFOL	43 Neutral	kr227.13M	-3.05	-51.35%	―	―	-34.02%
ACTI	40 Underperform	kr123.63M	-1.85	-1291.15%	―	―	28.54%