Tourmaline Bio (TRML) AI Stock Analysis

• Market Cap: $481.66M
• Dividend Yield: N/A
• Average Volume (3M): 182.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: N/A
• EPS Growth: 74.59%
• Country: US
• Employees: 74
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.89
• Shares Outstanding: 25,688,478
• 10 Day Avg. Volume: 115,035
• 30 Day Avg. Volume: 182,349
• PEG Ratio: 0.48
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.60
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 95.35
• Enterprise Value/Gross Profit: 44.16K
• Enterprise Value/Ebitda: -1.41
• 1Y Price Target: $52.83
• Price Target Upside: 181.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 45 Neutral
• Price Target: ―

Tourmaline Bio's overall stock score reflects substantial financial and profitability challenges. While the technical indicators suggest some positive momentum, the negative P/E ratio and lack of dividend yield indicate valuation concerns. The strong equity position is a positive, but is overshadowed by the company's significant cash flow issues and lack of revenue growth.

Positive Factors

Clinical Trial Results

Tourmaline Bio reported positive data from the Phase 2 TRANQUILITY trial of pacibekitug in patients with elevated high-sensitivity C-reactive protein (hs-CRP) and chronic kidney disease (CKD).

Dosing Regimen

Pacibekitug's quarterly dosing regimen could be a differentiating advantage compared to ziltivekimab, which is administered subcutaneously once monthly.

Safety Profile

Paci shows a lower rate of infections and serious infections with its 50mg dose compared to a competitor's dose, indicating a favorable safety profile.

Negative Factors

Clinical Trial Analysis

Key debates following the readout centered on TRML's use of an mITT analysis and the trial's placebo response on hs-CRP reduction, but these concerns are seen as overblown.

Market Competition

Failure to achieve commercial success due to market size, penetration rate, and/or competition remains a risk for pacibekitug.

Regulatory and Market Risks

Risks include failure of pacibekitug in clinical trials, failure to secure regulatory approval in the U.S., failure to achieve commercial success due to market size, penetration rate, and/or competition, and potential dilution risk.

Tourmaline Bio Business Overview & Revenue Model

Company Description

Tourmaline Bio, Inc. operates as a clinical biotechnology company that develops medicines for patients with life-altering immune diseases. It develops medicines and therapies for the Atherosclerotic cardiovascular disease (ASCVD) and Thyroid Eye Disease (TED). The company was incorporated in 2021 and is based in New York, New York.

How the Company Makes Money

Tourmaline Bio makes money primarily through the development and commercialization of its proprietary biologic therapies. The company generates revenue by licensing its technology and products to larger pharmaceutical firms, entering into strategic partnerships that provide upfront payments, milestone payments, and royalties on future sales. Additionally, Tourmaline Bio might receive funding from government grants and research collaborations that support its drug development efforts. As its pipeline matures, the company also aims to benefit from direct sales of its approved therapies.

Tourmaline Bio Financial Statement Overview

Summary

Tourmaline Bio faces significant financial challenges, particularly in profitability and cash flow management. Despite maintaining a strong equity position with low leverage, ongoing losses, negative cash flow, and minimal revenue generation present substantial hurdles.

Income Statement

Tourmaline Bio's income statement reflects a challenging financial environment. The company has a gross profit margin of 25% for the TTM, but significant negative EBIT and EBITDA margins indicate operating difficulties. The net profit margin is also negative, at -207,172.5% for TTM. The absence of revenue in previous periods and a minimal revenue in the current period highlight growth challenges.

Balance Sheet

The balance sheet shows a relatively strong equity position with a debt-to-equity ratio of 0.0007 for TTM, indicating low leverage. However, the return on equity is negative due to ongoing losses, and the equity ratio is robust at 97.34% for TTM. These metrics suggest financial stability but highlight profitability issues.

Cash Flow

Tourmaline Bio's cash flow analysis reveals significant challenges, with a negative operating cash flow to net income ratio and free cash flow to net income ratio for TTM. The free cash flow growth rate is also negative, indicating cash generation issues. These factors point to liquidity concerns and operational inefficiencies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-33.00K	-6.00K	-623.00K	-447.00K
EBITDA	-89.73M	-45.38M	-19.70M	-46.88M	-22.24M
Net Income	-73.21M	-42.12M	-19.70M	-904.00	-22.71M
Balance Sheet
Total Assets	309.00M	210.29M	9.10M	150.00K	152.78M
Cash, Cash Equivalents and Short-Term Investments	258.30M	202.95M	8.26M	150.00K	149.49M
Total Debt	244.00K	415.00K	504.00K	150.00K	0.00
Total Liabilities	8.95M	5.25M	28.83M	376.00K	4.77M
Stockholders Equity	300.05M	205.04M	-19.73M	-226.00K	148.00M
Cash Flow
Free Cash Flow	-77.27M	-28.14M	-11.53M	-42.42M	-20.50M
Operating Cash Flow	-77.26M	-28.08M	-6.46M	-39.99M	-19.21M
Investing Cash Flow	-194.31M	3.84M	-5.07M	-96.39M	-133.30M
Financing Cash Flow	161.35M	156.72M	19.85M	137.40M	131.12M

Tourmaline Bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRML, the sentiment is Positive. The current price of 18.75 is above the 20-day moving average (MA) of 17.68, above the 50-day MA of 17.42, and below the 200-day MA of 18.97, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRML.

Tourmaline Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXRX	59 Neutral	$410.39M	―	-86.09%	―	1250.63%	37.24%
Sector *	58 Neutral	£4.95B	6.56	-62.36%	103.85%	34.03%	6.31%
RZLT	53 Neutral	$510.67M	―	-95.15%	―	―	-10.43%
TRML	45 Neutral	$481.66M	―	-26.14%	―	―	74.59%
TERN	45 Neutral	$529.27M	―	-32.12%	―	―	10.98%
SLDB	44 Neutral	$517.80M	―	-55.30%	―	―	37.17%
OPT	39 Underperform	$486.61M	―		―	-25.10%	-7.06%

Tourmaline Bio Corporate Events

Tourmaline Bio Updates on Clinical Progress and Outlook

Tourmaline Bio has released an updated corporate presentation detailing its progress and future plans, including significant clinical trial milestones for its lead product, pacibekitug. The company is well-financed, with cash expected to fund operations into 2027, positioning it to achieve key milestones that could enhance its market position and provide value to stakeholders.

Tourmaline Bio Unveils Clinical Progress and New Indication

Tourmaline Bio announced key updates at its Investor Day, highlighting progress in its clinical trials and strategic priorities. The company reported over-enrollment in its Phase 2 TRANQUILITY trial and introduced a new indication for pacibekitug, abdominal aortic aneurysm, while planning further developments contingent on trial outcomes, positioning itself for potential expansion in cardiovascular inflammation treatment.