InnoCan Pharma (INNO) AI Stock Analysis

• Market Cap: $65.23M
• Dividend Yield: N/A
• Average Volume (3M): 1.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 21.46%
• EPS Growth: 65.70%
• Country: CA
• Employees: 11
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.18
• Shares Outstanding: 4,498,772
• 10 Day Avg. Volume: 2,240
• 30 Day Avg. Volume: 1,693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 90.45
• 1Y Price Target: $12.99
• Price Target Upside: -33.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: C$13.00 ▼(-33.16% Downside)

InnoCan Pharma's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profitability. Technical analysis shows mixed signals, with no clear trend direction. The valuation is poor due to a negative P/E ratio and lack of dividends, further weighing down the score.

InnoCan Pharma Business Overview & Revenue Model

Company Description

InnoCan Pharma (INNO) is a pharmaceutical company engaged in the research, development, and commercialization of innovative therapeutic products. The company operates primarily in the biotechnology and pharmaceutical sectors, focusing on developing novel treatments utilizing its proprietary technology platforms. InnoCan Pharma is known for leveraging cannabinoid science and liposome technology to create therapies aimed at improving health and wellness.

How the Company Makes Money

InnoCan Pharma generates revenue through the development and commercialization of its proprietary therapeutic products. The company's key revenue streams include licensing agreements, research and development collaborations, and sales of its innovative health products. Significant partnerships with pharmaceutical companies and research institutions play a crucial role in advancing its product pipeline and expanding market reach, contributing to its earnings. By leveraging its unique technological platforms, InnoCan Pharma aims to bring effective treatments to market, thereby driving revenue growth.

InnoCan Pharma Financial Statement Overview

Summary

InnoCan Pharma shows significant revenue growth and improving operational metrics. However, challenges remain in achieving profitability and generating positive cash flows. The balance sheet is stable with low leverage, but consistent net losses could become a concern if not addressed.

Income Statement

InnoCan Pharma has shown a significant improvement in its financial performance over the years. The TTM (Trailing-Twelve-Months) gross profit margin is robust at 89.61%, indicating efficient cost management. The revenue has grown impressively from 2020 to 2025, highlighting strong market performance. However, the company is still struggling with profitability as indicated by the negative net profit margin of -2.13% in the TTM period, although there's a narrowing loss from previous years. The EBIT margin has turned positive in the TTM period at 1.49%, and the EBITDA margin improved to 4.31%, showing operational improvements.

Balance Sheet

The balance sheet of InnoCan Pharma displays a mixed picture. The company has a low debt-to-equity ratio of 0.28, suggesting conservative leverage. The equity ratio is 43.27%, reflecting a moderate equity base relative to total assets. The return on equity is still negative at -13.86% due to net losses, but this has been improving as losses decrease. While the company has maintained a strong cash position, consistent net losses pose a risk to long-term solvency.

Cash Flow

Cash flow analysis shows improvement in operational cash outflows, with the TTM period reporting a lower negative operating cash flow compared to previous years. The free cash flow is also negative, but the decrease in negative free cash flow indicates progress. The operating cash flow to net income ratio and free cash flow to net income ratio are negative, highlighting the challenges in converting earnings into cash. However, the trend towards improvement is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.83M	29.44M	13.66M	2.56M	196.00K	8.00K
Gross Profit	25.50M	26.19M	11.98M	2.11M	121.00K	3.00K
EBITDA	675.00K	961.00K	-3.77M	-3.85M	-10.04M	-9.90M
Net Income	-1.58M	-1.83M	-4.70M	-3.89M	-10.06M	-15.18M
Balance Sheet
Total Assets	11.04M	9.26M	6.94M	6.98M	12.57M	4.33M
Cash, Cash Equivalents and Short-Term Investments	7.25M	5.01M	3.88M	4.95M	11.05M	2.34M
Total Debt	1.40M	10.00K	33.00K	34.00K	1.00K	38.00K
Total Liabilities	4.35M	2.24M	2.55M	751.00K	3.56M	7.94M
Stockholders Equity	4.21M	5.17M	4.10M	6.39M	9.05M	-3.61M
Cash Flow
Free Cash Flow	-469.00K	-1.59M	-3.95M	-6.09M	-6.67M	-3.69M
Operating Cash Flow	-453.00K	-1.58M	-3.90M	-6.07M	-6.63M	-3.69M
Investing Cash Flow	53.00K	54.00K	-84.00K	-31.00K	-48.00K	0.00
Financing Cash Flow	2.41M	2.70M	2.92M	125.00K	15.30M	4.02M

InnoCan Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INNO, the sentiment is Positive. The current price of 19.45 is above the 20-day moving average (MA) of 12.69, above the 50-day MA of 13.71, and above the 200-day MA of 12.63, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 78.14 is Negative, neither overbought nor oversold. The STOCH value of 98.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:INNO.

InnoCan Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDP	58 Neutral	C$89.36M	67.40	1.52%	―	0.03%	-17.30%
MPH	49 Neutral	C$11.48M	-8.49	-7.39%	―	10.84%	48.57%
RVV	46 Neutral	C$6.28M	-1.56	―	―	―	15.79%
BNXT	45 Neutral	C$100.85M	-15.94	67.56%	―	-29.29%	12.89%
INNO	45 Neutral	$65.23M	―	-34.90%	―	21.46%	65.70%
MVMD	35 Underperform	C$5.29M	-0.71	―	―	-46.59%	9.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

InnoCan Pharma Corporate Events

Innocan Pharma Files for U.S. Public Offering and Nasdaq Listing

Innocan Pharma has filed a registration statement with the U.S. SEC for a proposed public offering of units in the United States, which includes listing its shares and warrants on the Nasdaq Capital Market. This move is expected to open new opportunities for the company, enhancing its market presence and potentially benefiting stakeholders by expanding its access to capital and increasing visibility in the U.S. market.

Innocan Pharma Reports Promising Study Results and Corporate Changes

Innocan Pharma has announced promising results from a study on its liposomal-CBD injection, which showed prolonged release and a favorable safety profile in minipigs. Additionally, the company has undergone a leadership change with the resignation of Executive Chairman Ron Mayron, who will be succeeded temporarily by Iris Bincovich. Innocan also granted RSUs and stock options to its team, reflecting strategic moves to strengthen its workforce and incentivize performance.

Innocan Pharma’s Synthetic CBD Review to be Presented at PAINWEEK 2025

Innocan Pharma announced that its narrative review on long-acting synthetic cannabidiol for chronic pain has been accepted for presentation at the PAINWEEK 2025 conference. The review highlights the potential of Innocan’s LPT-CBD, an injectable liposomal drug product, as a promising non-opioid analgesic alternative, offering prolonged pain relief and addressing opioid dependency. This presentation positions Innocan at the forefront of innovative pain management solutions, potentially impacting its market presence and partnerships.

Innocan Pharma Advances Non-Opioid Pain Management with Synthetic CBD

Innocan Pharma has announced the publication of a peer-reviewed narrative review in the Cureus journal, highlighting the potential of long-acting synthetic cannabidiol (CBD) for chronic pain management. This development aligns with the FDA’s emphasis on non-addictive pain therapies and positions Innocan’s LPT-CBD platform as a promising alternative to opioids, with regulatory submissions underway to advance it into human clinical trials.

Innocan Pharma Reports Strong Q1 2025 Results and Advances CBD Technology

Innocan Pharma reported a strong financial performance in the first quarter of 2025, with a 15% increase in revenue to $7.8 million and a shift from an operating loss to a profit. The company is expanding its intellectual property coverage in Asia and advancing its LPT-CBD technology, which has received positive feedback from the FDA. Innocan’s efforts in both human and veterinary markets, particularly in chronic pain management, are positioning it for continued growth and innovation.

Innocan Pharma Secures First Mexican Patent for Cannabis-Based Pain Relief

Innocan Pharma has been granted its first patent in Mexico for a proprietary cannabis-based topical pain relief formulation, marking a significant milestone in its intellectual property portfolio. This approval positions the company for strategic entry into Latin American markets, complementing existing patents in the United States, Russia, and Ukraine, and underscores its leadership in cannabidiol-based wellness innovation.