Modus Therapeutics Holding AB (MODTX) AI Stock Analysis

• Market Cap: kr42.57M
• Dividend Yield: N/A
• Average Volume (3M): 841.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.41
• 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: kr0.34 ▲(12.67% Upside)

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

Low Financial Leverage

Total debt at SEK 0 materially reduces financial leverage and bankruptcy risk, giving management flexibility to prioritize R&D and partner deals. Low leverage preserves borrowing capacity and strategic optionality during multi-year clinical development.

Focused Therapeutic Strategy

A concentrated focus on sickle cell and hematologic disorders fosters deep domain expertise and clearer clinical pathways. This specialization enhances the potential for targeted partnerships, licensing deals and differentiated positioning in a high unmet-need therapeutic niche.

Moderating Cash Burn

Year-over-year reduction in cash burn indicates improved cost discipline and operational efficiency. A slower burn rate extends runway, reduces near-term financing pressure, and provides additional time to reach clinical inflection points or secure partnerships.

Negative Factors

Pre-revenue, Persistent Losses

The company has no product revenue and sustained negative EBIT across multiple years. Long-term viability depends on successful clinical development and commercialization, making the business model contingent on execution and external financing rather than internal cash generation.

Eroded Equity Cushion

A sharp decline in equity reflects cumulative losses and a thin capital buffer. Limited equity weakens shock absorption, increases likelihood of dilutive recapitalizations, and constrains the company's ability to self-fund setbacks or accelerate programs without external capital.

Dependence on External Funding

Consistently negative free cash flow that mirrors accounting losses forces reliance on capital raises or partners. This funding dependency heightens execution risk, raises dilution probability, and can delay clinical progress if market conditions or partner interest falter.

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

Modus Therapeutics exhibits typical characteristics of an early-stage biotech firm with no revenue generation and significant operational expenses. The company maintains liquidity through equity financing, but the absence of revenue and profitability poses substantial risks.

Income Statement

Modus Therapeutics has consistently reported zero revenue, which is common in early-stage biotech firms focusing on R&D. However, the absence of revenue combined with significant net losses indicates financial strain. Negative EBIT and EBITDA margins further highlight the lack of operational profitability.

Balance Sheet

The company's balance sheet shows a reliance on equity financing, as evidenced by the zero debt in recent years. However, the low stockholders' equity and negative equity in prior years indicate financial instability. The company has been able to maintain a positive cash position, but the equity ratio is low, suggesting vulnerability to financial shocks.

Cash Flow

Operating cash flow remains negative, which is typical for a biotech company in the development phase. The significant cash burn, offset by financing activities, indicates a need for continuous funding. The free cash flow is consistently negative, reflecting the high operational and R&D expenditures without income generation.

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: Negative
• Last Price: 0.30
• 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 SE:MODTX, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.37, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 50.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ELIC	47 Neutral	kr287.33M	-17.23	-48.30%	―	―	52.96%
ISOFOL	44 Neutral	kr201.69M	-2.50	-51.35%	―	―	-34.02%
XINT	44 Neutral	kr266.99M	-4.84	―	―	-7.68%	17.93%
MODTX	43 Neutral	kr42.57M	-1.55	-166.94%	―	―	-19.35%
NXTCL	43 Neutral	kr76.53M	-1.56	-52.45%	―	2.56%	52.76%
ACTI	41 Neutral	kr116.78M	-1.38	-1291.15%	―	―	28.54%