Algernon Pharmaceuticals (AGN) AI Stock Analysis

• Market Cap: C$1.86M
• Dividend Yield: N/A
• Average Volume (3M): 13.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• 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$0.04 ▼(-36.67% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by weak fundamentals—no revenue, ongoing losses, and continued cash burn—partly offset by improving loss/burn trends and a debt-free balance sheet. Technical indicators add further pressure due to clear bearish trend and weak momentum, while valuation is limited by negative earnings and no dividend support.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet materially lowers financial fixed costs and reduces default/interest risk over the coming months. This structural strength preserves optionality for financing or partnerships, extending runway relative to leveraged peers even while the company remains pre-revenue.

Narrowed losses and improving cash burn

Meaningful reduction in operating losses and free cash outflow indicates improved cost discipline or program prioritization. Persisting improvement reduces near-term financing needs, lengthens runway, and increases the probability management can reach value-driving milestones without immediate dilution.

Clinical-stage pipeline with legacy marketed product

A clinical-stage R&D focus plus an existing marketed product provides dual strategic paths: progress clinical assets toward regulatory/partnership catalysts while monetizing or out-licensing the legacy product. This structural model creates multiple durable value-creation avenues beyond short-term trading.

Negative Factors

No revenue and negative gross profit

Zero product or recurring revenue means the business cannot self-fund operations and remains entirely dependent on external capital or licensing events. Persistent negative gross profit signals the company has yet to demonstrate scalable, margin-generating operations.

Persistent cash burn & funding reliance

Consistent negative operating and free cash flow creates an ongoing financing imperative. Over a 2-6 month horizon this increases dilution and execution risk if trial timelines slip or partnerships delay, constraining strategic flexibility until revenue or non-dilutive funding arrives.

Very small operational scale

A single-employee reported headcount signals limited internal capacity to run trials, regulatory work, and commercialization activities. This structural constraint increases dependence on external CROs, partners, or management hires, raising execution risk and potential delays on the critical path.

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

Financial performance is very weak: zero revenue, negative gross profit, and ongoing operating/net losses, with persistently negative operating and free cash flow. Positives include meaningfully narrowed losses and reduced cash burn versus prior years, plus a debt-free balance sheet, but the company remains reliant on external funding until it achieves revenue scale or further cuts expenses.

Income Statement

Income statement remains very weak: the company reports zero revenue across the annual periods provided and TTM (Trailing-Twelve-Months), with consistently negative gross profit and sizable operating losses. Losses have narrowed meaningfully versus earlier years (net loss improved from about -6.8M in 2023 to about -1.7M in 2025 annual), but profitability is still deeply negative and the business has not yet demonstrated a revenue base.

Balance Sheet

Balance sheet shows a key strength: no debt, which reduces financial risk and interest burden. However, equity has been volatile and generally pressured over time (down materially from 2021 levels), and returns on equity are consistently negative, reflecting ongoing losses and value erosion risk if losses persist.

Cash Flow

Cash flow is pressured by ongoing cash burn: operating cash flow and free cash flow are negative in every period shown, including TTM (Trailing-Twelve-Months). The burn rate has improved versus 2024 and prior years (TTM free cash flow around -1.27M vs ~-2.79M in 2024), but the company is still not self-funding and will likely remain reliant on external capital until it reaches revenue scale or materially reduces expenses.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Aug 2022	Aug 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: Positive
• STOCH: Positive

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 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 17.42 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, 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%
AGN	42 Neutral	C$1.86M	-1.17	―	―	―	64.77%
APLI	42 Neutral	C$2.57M	-0.84	―	―	-58.01%	29.73%

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.