Algernon Pharmaceuticals (AGN) AI Stock Analysis

• Market Cap: C$2.32M
• Dividend Yield: N/A
• Average Volume (3M): 13.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: 64.77%
• Country: CA
• Employees: 1
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 46,499,270
• 10 Day Avg. Volume: 14,017
• 30 Day Avg. Volume: 13,803
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.78
• 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: 42 Neutral
• Price Target: C$0.05 ▼(-20.00% Downside)

The score is weighed down primarily by very weak financial performance (no revenue, ongoing losses, and continued cash burn), only partly offset by a debt-free balance sheet and some improvement in losses/burn. Technicals add further pressure as the stock trades below key moving averages with negative MACD. Valuation provides limited support given negative earnings and no dividend.

Positive Factors

Debt-free balance sheet

Having no debt materially lowers financial fragility for a clinical-stage biotech that burns cash. It reduces fixed interest obligations, eases covenant/default risk, preserves flexibility to time equity raises or pursue partnerships, and lengthens runway without adding interest expense.

Improving loss and burn trend

A meaningful narrowing of net losses signals progress toward operating discipline or milestone-driven cost alignment. For a firm dependent on capital markets, a lower burn and smaller absolute losses reduce near-term financing frequency, improving odds of reaching value-inflection clinical endpoints before severe dilution.

Clinical-stage pipeline plus legacy product

A focused R&D pipeline combined with a legacy marketed product provides strategic optionality: the marketed asset can support licensing or limited revenue while the clinical programs create upside for partnering or out-licensing. This mix supports multiple non-dilutive exit paths over time.

Negative Factors

Zero reported revenue

Zero revenue across multiple periods is a fundamental constraint for sustainability: without product sales or durable licensing receipts the firm cannot self-finance operations. Continued absence of revenue increases reliance on external capital until a commercial or licensing event materializes.

Consistent negative cash flow

Persistent negative operating and free cash flow means the company consumes cash each period and cannot fund growth internally. This structural cash deficit constrains R&D cadence, forces financing timing decisions, and raises the risk that critical trials are delayed or underfunded absent external capital.

Financing reliance and dilution risk

Dependence on equity markets for funding creates ongoing dilution risk and variable access to capital during turbulent markets. Repeated dilutive raises erode shareholder value, can compress incentives for long-term investors, and may limit the firm's ability to attract favorable partnerships or negotiate license terms.

Algernon Pharmaceuticals Business Overview & Revenue Model

Company Description

Algernon Pharmaceuticals Inc. operates as a clinical stage pharmaceutical development company. It focuses on the areas of non–alcoholic steatohepatitis, chronic kidney disease, inflammatory bowel disease, idiopathic pulmonary fibrosis, chronic cough, and acute lung injury associated with COVID-19 in Canada and Australia. The company's lead candidate is NP-120, an N-methyl-d-aspartate (NMDA) receptor glutamate receptor antagonist, which targets NMDA-type subunit 2B (Glu2NB), as well as exhibits agonist activity for the Sigma-1 receptor, a chaperone protein up-regulated during endoplasmic reticulum stress. It is also developing AP-188, a psychedelic compound that is part of the tryptamine family for the treatment of ischemic stroke in humans. Algernon Pharmaceuticals Inc. has an agreement with Charles River Laboratories for preclinical studies of AP-188 for the company's stroke clinical research program. Algernon Pharmaceuticals Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Algernon Pharmaceuticals makes money through the development and commercialization of its pharmaceutical products. The company focuses on repurposing existing drugs, which can streamline the approval process and reduce costs associated with drug development. Revenue is primarily generated through licensing agreements, partnerships with larger pharmaceutical companies, and potential sales of its proprietary compounds once approved. Additionally, Algernon may secure funding through grants or investment in its research and development initiatives. The company's earnings are influenced by the success of its clinical trials, regulatory approvals, and the ability to establish strategic partnerships for commercialization.

Algernon Pharmaceuticals Financial Statement Overview

Summary

Overall fundamentals are weak: no revenue across periods, recurring operating/net losses, and consistently negative operating/free cash flow. The debt-free balance sheet reduces financial risk, but equity has fallen sharply over time, indicating ongoing dilution/funding pressure and value erosion.

Income Statement

The company reports no revenue across all provided annual periods, while operating losses remain persistent. Losses narrowed materially from 2020–2023 levels to 2024 (net loss of ~0.5M), but widened again in 2025 (net loss of ~1.7M), indicating an uneven path to cost control. Negative gross profit in recent years also suggests ongoing expense burden without an offsetting commercial base.

Balance Sheet

A key positive is the absence of debt in all reported years, reducing financial risk and interest burden. However, the equity base has shrunk significantly from ~12.2M (2020) to ~2.7M (2025) and assets also declined, reflecting cumulative losses and funding/asset drawdown. Returns on equity are consistently negative (notably very weak in 2023), highlighting ongoing value erosion despite low leverage.

Cash Flow

Cash burn remains the central issue: operating cash flow and free cash flow are negative every year. There was meaningful improvement versus 2020–2021 burn rates, but 2025 still shows ~1.16M of operating cash outflow and free cash outflow, and free cash flow declined versus 2024. Cash flow tracks net losses closely, indicating losses are largely translating into cash outflows rather than being cushioned by non-cash items.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-54.69K	-26.56K	-50.40K	-34.94K	0.00
EBITDA	-1.66M	-476.42K	-4.98M	-6.02M	-8.05M
Net Income	-1.72M	-502.98K	-6.78M	-6.05M	-7.73M
Balance Sheet
Total Assets	4.88M	3.94M	4.19M	8.14M	10.14M
Cash, Cash Equivalents and Short-Term Investments	176.50K	596.20K	125.08K	1.41M	2.41M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.18M	1.78M	2.72M	2.52M	1.02M
Stockholders Equity	2.70M	2.17M	1.47M	5.62M	9.12M
Cash Flow
Free Cash Flow	-1.16M	-2.79M	-2.61M	-3.06M	-7.95M
Operating Cash Flow	-1.16M	-2.71M	-2.55M	-2.91M	-7.82M
Investing Cash Flow	150.03K	2.28M	-59.50K	-144.61K	-124.45K
Financing Cash Flow	587.31K	901.09K	1.33M	2.06M	4.25M

Algernon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 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 TSE:AGN, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.28 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AGN.

Algernon Pharmaceuticals 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%
APLI	45 Neutral	C$3.03M	-1.20	―	―	-58.01%	29.73%
AGN	42 Neutral	C$2.32M	-0.81	―	―	―	64.77%

Algernon Pharmaceuticals Corporate Events

Algernon Health Closes $857,001 Private Placement to Advance U.S. Alzheimer’s Clinic Plans

Algernon Health has closed its non-brokered private placement financing at approximately CAD $857,001, following a fourth and final tranche that raised CAD $117,501 through the issuance of 1,678,586 units at CAD $0.07 per unit. Certain insiders participated in the final tranche, but the company relied on exemptions from formal valuation and minority approval requirements as their involvement remained below key materiality thresholds, and no finder’s fees were paid. The proceeds will be directed primarily toward advancing Algernon’s Alzheimer’s disease program, including the launch of its first U.S. Alzheimer’s clinic, as well as covering general and administrative expenses and working capital, potentially strengthening its position in the emerging neuroimaging and early-detection market for neurodegenerative disorders.

Algernon Health Boosts Private Placement to $750,000 to Advance Alzheimer’s Imaging Clinics

Algernon Health has upsized its non-brokered private placement financing to C$750,000 and closed a third tranche, raising C$352,500 from the sale of 5,035,714 units at C$0.07 each, bringing total gross proceeds from all tranches to C$739,500. The company plans to use the funds to advance its Alzheimer’s disease program, including the launch of its first U.S. Alzheimer’s clinic, and to support general and administrative expenses and working capital, underlining its push to build out a North American neuroimaging clinic network focused on brain-specific PET scanning services.

Algernon Health Secures CAD $210,000 in Private Placement to Boost Alzheimer’s Program

Algernon Health Inc. announced the closing of the second tranche of its non-brokered private placement, raising CAD $210,000 from the sale of 3,000,000 units. The funds will support the advancement of its Alzheimer’s Disease program, including the opening of its first U.S. clinic, and cover general administrative expenses and working capital. This move underscores Algernon’s commitment to expanding its presence in the neuroimaging sector, potentially enhancing its market position and offering stakeholders promising growth opportunities.

Algernon Pharmaceuticals Partners with AMI for U.S. Neuroimaging Clinics

Algernon Pharmaceuticals has announced a strategic partnership with American Molecular Imaging (AMI) to enhance its planned U.S. neuroimaging clinics. This agreement involves AMI providing exclusive radiology reading services and a $500,000 investment to support Algernon’s initiative. The collaboration aims to deliver high-quality PET scan interpretations for conditions like Alzheimer’s Disease, positioning Algernon as a leader in neuroimaging. This move is part of Algernon’s broader strategy to expand its presence in the U.S. healthcare market, supported by recent equipment acquisitions and planned clinic openings.

Algernon Health Closes First Tranche of Private Placement Financing

Algernon Health has successfully closed the first tranche of its non-brokered private placement, raising CAD $177,000. The funds will be used to advance its Alzheimer’s Disease program, including opening its first U.S. clinic. The participation of company insiders in this tranche is considered a related party transaction but does not require additional shareholder approval. The company anticipates closing additional tranches by December 1, 2025, and the securities will be subject to a statutory hold period under Canadian law.

Algernon Health Announces Private Placement and Share Structure Alteration

Algernon Health Inc. has announced a non-brokered private placement to raise $500,000 through the issuance of units consisting of common shares and warrants. The funds will be used to advance its Alzheimer’s Disease program, including the opening of its first U.S. brain-specific neuroimaging clinic. Additionally, the company has converted subscription receipts into preferred shares and warrants, following shareholder approval to alter its share structure. This strategic move aims to bolster Algernon’s market position in the healthcare sector, particularly in Alzheimer’s early detection.