HLS Therapeutics Inc (HLS) AI Stock Analysis

• Market Cap: C$153.68M
• Dividend Yield: N/A
• Average Volume (3M): 13.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -3.73%
• EPS Growth: 32.70%
• Country: CA
• Employees: 92
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.19
• Shares Outstanding: 31,557,089
• 10 Day Avg. Volume: 14,409
• 30 Day Avg. Volume: 13,298
• PEG Ratio: -0.13
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.50
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: 5.55
• 1Y Price Target: C$7.25
• Price Target Upside: 50.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: C$5.00 ▲(3.52%Upside)

HLS Therapeutics Inc's overall score is primarily driven by its strong operational efficiency and strategic corporate events, which are offset by ongoing profitability issues reflected in a negative P/E ratio. Technical indicators suggest a potential buying opportunity, but the financial position must improve for a more favorable valuation.

Positive Factors

Drug Approval

The FDA has announced that the REMS program for clozapine will no longer be required, which could bode well for US sales of Clozaril.

Insurance Coverage

Vascepa has now achieved insurance coverage for over 90% of Canadians eligible for public plans and over 95% for private plans.

Product Synergies

HLS Therapeutics has in-licensed synergistic products with the potential to more than double revenues.

Negative Factors

FX Headwinds

The ongoing trade war's potential impact on the market has led to a decline in the 2025 revenue forecast, primarily due to FX headwinds.

Gross Profit Margin

Gross profit margin in Q4 contracted to 83% as royalty revenue declined significantly.

Revenue Decline

Revenue declined 2% to $15.5M, coming in just below the Street's estimate of $15.7M.

HLS Therapeutics Inc Business Overview & Revenue Model

Company Description

HLS Therapeutics Inc., a specialty pharmaceutical company, acquires and commercializes pharmaceutical products in the specialty central nervous system and cardiovascular (CV) markets in Canada, the United States, and internationally. The company's product portfolio includes Clozaril, an atypical antipsychotic used in the treatment of schizophrenia; Vascepa, an icosapent ethyl capsules; and PERSERIS, an injectable risperidone product for the treatment of schizophrenia. It also offers MyCare psychiatry lab assays and MyCare Insite point of care therapeutic drug-level monitoring tests. In addition, the company holds the U.S. marketing rights of Absorica, a commercial stage dermatology product; Canadian rights of Trinomia for CV therapeutics; and a portfolio of royalty interests of four healthcare products. HLS Therapeutics Inc. was founded in 2018 and is headquartered in Etobicoke, Canada.

How the Company Makes Money

HLS Therapeutics Inc generates revenue through the commercialization and sales of pharmaceutical products. The company's revenue streams primarily consist of product sales, royalties, and licensing fees. HLS acquires rights to commercialize clinically proven drugs with established efficacy and safety profiles. The company leverages its expertise in regulatory approvals, market access, and sales and marketing to drive product sales across North America. Strategic partnerships and licensing agreements with other pharmaceutical firms also contribute to its earnings, allowing HLS to expand its market reach and diversify its product portfolio.

HLS Therapeutics Inc Financial Statement Overview

Summary

HLS Therapeutics Inc shows strong operational efficiency with a high gross profit margin and improving EBITDA margins. However, persistent net losses result in negative net profit margins and ROE. The balance sheet reflects moderate leverage with a stable equity ratio. Cash flow remains positive despite net losses, highlighting effective cash management. The company needs to address profitability issues to enhance financial stability.

Income Statement

The company has shown a decline in revenue from 2023 to 2024, with a revenue growth rate of -10.24%. The gross profit margin remains strong at approximately 84.1% in 2024, though it has slightly decreased from previous years. Net profit margin remains negative due to persistent net losses, indicating profitability issues. EBITDA margin improved to 30.41% in 2024 from 20.42% in 2023, demonstrating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is approximately 0.93, indicating a moderate level of leverage. Return on equity is negative, reflecting ongoing net losses. The equity ratio stands at 44.6%, which suggests a balanced approach to financing between debt and equity. Overall, the balance sheet shows a stable but leveraged financial position.

Cash Flow

The operating cash flow to net income ratio is negative due to net losses, but the company has managed positive free cash flow of $7.99 million in 2024. Free cash flow to net income ratio is also negative. Despite net losses, the company maintains positive cash generation from operations, indicating efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.77M	56.62M	63.07M	61.47M	60.01M	56.11M
Gross Profit	47.15M	47.62M	55.45M	56.49M	56.04M	52.48M
EBITDA	14.60M	17.22M	12.88M	18.00M	25.41M	23.19M
Net Income	-17.98M	-19.66M	-27.53M	-23.60M	-13.12M	-15.33M
Balance Sheet
Total Assets	153.95M	159.90M	209.06M	241.65M	275.90M	303.91M
Cash, Cash Equivalents and Short-Term Investments	17.73M	17.46M	21.95M	20.72M	21.18M	20.61M
Total Debt	63.74M	66.45M	87.62M	97.34M	97.57M	107.12M
Total Liabilities	87.15M	88.56M	111.36M	116.33M	115.17M	134.66M
Stockholders Equity	66.80M	71.34M	97.70M	125.32M	160.74M	169.25M
Cash Flow
Free Cash Flow	10.73M	7.99M	15.60M	6.79M	11.92M	-35.33M
Operating Cash Flow	10.77M	8.00M	15.79M	16.94M	16.43M	9.34M
Investing Cash Flow	11.72M	11.73M	-189.00K	-10.15M	-4.51M	-44.68M
Financing Cash Flow	-23.61M	-23.36M	-14.64M	-6.86M	-11.40M	9.56M

HLS Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLS, the sentiment is Positive. The current price of 4.83 is below the 20-day moving average (MA) of 4.89, above the 50-day MA of 4.80, and above the 200-day MA of 4.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HLS.

HLS Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLS	56 Neutral	C$153.68M	―	-23.05%	―	-3.73%	32.70%
Sector *	52 Neutral	$7.53B	0.20	-61.87%	2.28%	16.72%	1.10%
THTX		$144.52M	―		―	―	―
CPHRF		$249.44M	26.05	9.69%	―	―	―
MDP	72 Outperform	C$95.48M	23.83	5.27%	―	-1.14%	―
CRDL		$113.48M	―	-190.61%	―	―	―

HLS Therapeutics Inc Corporate Events

HLS Therapeutics Secures Nova Scotia Reimbursement for Vascepa

HLS Therapeutics Inc. has announced a Product Listing Agreement with Nova Scotia for the public reimbursement of Vascepa, a prescription treatment for cardiovascular events, under the provincial drug plan. This agreement significantly enhances the accessibility of Vascepa in Atlantic Canada, aligning with HLS’s strategic goal to become a leading Canadian company in cardiovascular risk reduction. With this milestone, Vascepa is now accessible to over 95% of eligible patients in Canada, marking a significant expansion in its market reach.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$3.75 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

HLS Therapeutics Announces Strong Shareholder Support at Annual Meeting

HLS Therapeutics Inc. announced the results of its Annual Meeting of Shareholders, where 50.81% of total common shares were voted. All nominated directors were elected with high approval rates, and Ernst & Young LLP was confirmed as the company’s auditors. This outcome reflects strong shareholder support and reinforces HLS’s strategic direction in the pharmaceutical industry.

The most recent analyst rating on (TSE:HLS) stock is a Hold with a C$3.75 price target. To see the full list of analyst forecasts on HLS Therapeutics Inc stock, see the TSE:HLS Stock Forecast page.

HLS Therapeutics Partners with Esperion to Bring Cardiovascular Treatments to Canada

HLS Therapeutics Inc. has partnered with Esperion Therapeutics to commercialize NEXLETOL and NEXLIZET in Canada, targeting a significant unmet medical need for over half a million Canadians with cardiovascular issues. This strategic move aligns with HLS’s business development strategy and strengthens its position in the Canadian cardiovascular market. The agreement involves an upfront payment and potential milestone payments, with HLS funding these through existing cash reserves, indicating no significant increase in operating expenses. This collaboration is expected to enhance HLS’s market presence and provide advanced treatment options for Canadian patients.

HLS Therapeutics Reports Q1 2025 Growth and Strategic Expansion

HLS Therapeutics reported a 5% increase in total product revenue for Q1 2025 compared to Q1 2024, with significant growth in the Canadian market driven by a 34% rise in Vascepa sales. The company also achieved a 41% increase in adjusted EBITDA, reflecting operational efficiencies and a 20% reduction in operating expenses. HLS expanded its cardiovascular portfolio by securing Canadian rights to NEXLETOL and NEXLIZET from Esperion Therapeutics, aligning with its strategic focus on growth and shareholder value enhancement. This expansion is expected to complement existing products and address unmet medical needs, with commercial launch preparations underway for early 2026.

HLS Therapeutics to Present at 2025 Healthcare Investor Conference

HLS Therapeutics Inc. announced that its Chief Commercial Officer, Brian Walsh, will present at the 2025 Bloom Burton & Co. Healthcare Investor Conference in Toronto. This presentation underscores HLS’s commitment to engaging with investors and stakeholders, potentially enhancing its visibility and influence in the pharmaceutical industry, particularly in the areas of psychiatric and cardiovascular treatments.

HLS Therapeutics to Announce Q1 2025 Financial Results

HLS Therapeutics Inc. announced it will release its Q1 2025 financial results on May 8, 2025, followed by a conference call hosted by key executives to discuss the results. This announcement is part of the company’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance, which could influence its market positioning and investor relations.