InnoCan Pharma (INNO) AI Stock Analysis

• Market Cap: C$33.74M
• Dividend Yield: N/A
• Average Volume (3M): 920.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -3.94%
• EPS Growth: -17.62%
• Country: CA
• Employees: 11
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.60
• Shares Outstanding: 4,498,772
• 10 Day Avg. Volume: 392
• 30 Day Avg. Volume: 920
• PEG Ratio: 0.34
• Price to Book (P/B): 7.71
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -25.00
• 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: 40 Neutral
• Price Target: C$7.00 ▼(-6.67% Downside)

InnoCan Pharma's overall stock score is primarily impacted by its financial performance and technical analysis. The company shows strong gross margins but struggles with profitability and cash flow, while technical indicators suggest bearish momentum. The negative P/E ratio and lack of dividend yield further weigh on the valuation.

Positive Factors

Strong Gross Margins

High gross margins indicate effective cost management, allowing the company to potentially reinvest in R&D and expand its product offerings.

Low Leverage

Low leverage provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Proprietary Technology

Proprietary technology can offer a competitive edge, supporting long-term growth through unique product offerings and potential licensing revenue.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder the company's ability to generate sustainable earnings, impacting long-term financial health.

Negative Cash Flow Growth

Declining cash flow growth can limit the company's ability to fund operations and invest in future growth, posing a risk to financial stability.

Revenue Growth Challenges

Limited revenue growth suggests challenges in market expansion and product adoption, potentially affecting long-term competitive positioning.

InnoCan Pharma Business Overview & Revenue Model

Company Description

InnoCan Pharma (INNO) is a biotechnology company focused on developing innovative therapeutic solutions leveraging cannabinoid-based technologies. The company operates primarily in the pharmaceutical and wellness sectors, with a core emphasis on creating advanced treatments for various medical conditions, including dermatological ailments and neurological disorders. InnoCan Pharma is known for its proprietary delivery systems that enhance the bioavailability of cannabinoids, aiming to revolutionize how these compounds are utilized in medical applications.

How the Company Makes Money

InnoCan Pharma generates revenue through several key streams, primarily by developing and commercializing cannabinoid-based pharmaceutical products. The company monetizes its research and development efforts by partnering with other pharmaceutical firms and healthcare organizations to co-develop products, which often includes licensing agreements. Additionally, InnoCan may earn revenue from product sales once its therapies and wellness products are approved for market use. The company also benefits from grants and funding aimed at supporting innovative medical research, which further contributes to its financial stability.

InnoCan Pharma Financial Statement Overview

Summary

InnoCan Pharma faces significant financial challenges, with declining revenues, negative profitability, and cash flow issues. While the company maintains a strong gross profit margin and low leverage, it struggles with operational efficiency and shareholder returns. The financial outlook is concerning, with potential risks from ongoing losses and cash flow constraints.

Income Statement

InnoCan Pharma's income statement shows a high gross profit margin of 88.45% TTM, indicating strong product profitability. However, the company is struggling with negative net profit margins and declining revenue growth, with a TTM revenue decrease of 5.38%. The EBIT and EBITDA margins are positive but low, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.33 TTM, indicating low leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating shareholder returns. The equity ratio is not provided, but the overall financial health appears weak due to negative equity in previous years.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and accounting profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.60M	29.44M	13.66M	2.56M	196.00K	8.00K
Gross Profit	26.25M	26.19M	11.98M	2.11M	121.00K	3.00K
EBITDA	-2.00M	961.00K	-3.77M	-3.85M	-10.04M	-9.90M
Net Income	-3.23M	-1.83M	-4.70M	-3.89M	-10.06M	-15.18M
Balance Sheet
Total Assets	15.47M	9.26M	6.94M	6.98M	12.57M	4.33M
Cash, Cash Equivalents and Short-Term Investments	10.22M	5.01M	3.88M	4.95M	11.05M	2.34M
Total Debt	2.12M	10.00K	33.00K	34.00K	1.00K	38.00K
Total Liabilities	4.49M	2.24M	2.55M	751.00K	3.56M	7.94M
Stockholders Equity	3.85M	5.17M	4.10M	6.39M	9.05M	-3.61M
Cash Flow
Free Cash Flow	558.00K	-1.59M	-3.95M	-6.09M	-6.67M	-3.69M
Operating Cash Flow	572.00K	-1.58M	-3.90M	-6.07M	-6.63M	-3.69M
Investing Cash Flow	53.47K	54.00K	-84.00K	-31.00K	-48.00K	0.00
Financing Cash Flow	1.53M	2.70M	2.92M	125.00K	15.30M	4.02M

InnoCan Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INNO, the sentiment is Negative. The current price of 7.5 is below the 20-day moving average (MA) of 9.49, below the 50-day MA of 13.67, and below the 200-day MA of 13.20, indicating a bearish trend. The MACD of -1.85 indicates Positive momentum. The RSI at 21.10 is Positive, neither overbought nor oversold. The STOCH value of 14.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:INNO.

InnoCan Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MDP	58 Neutral	C$90.45M	129.17	0.87%	―	2.14%	-83.06%
MPH	54 Neutral	C$13.15M	-3.83	-18.39%	―	24.30%	-68.60%
BNXT	48 Neutral	C$74.30M	-11.42	―	―	-62.34%	9.80%
RVV	46 Neutral	C$4.19M	-0.39	-664.21%	―	―	-80.42%
INNO	40 Neutral	C$33.74M	-7.50	-71.80%	―	-3.94%	-17.62%
MVMD	35 Underperform	C$5.29M	-0.71	-148.48%	―	-46.59%	8.26%

InnoCan Pharma Corporate Events

Innocan Pharma Reports Q3 2025 Results and Advances Drug Delivery Platform

Innocan Pharma reported its Q3 2025 financial results, showing revenues of $21.6 million, a 10% decrease compared to the previous year. Despite the revenue decline, the company maintained a high gross margin of 90.2% and a stable operating loss. The company continues to advance its LPT-CBD drug delivery platform, with promising pre-clinical results supporting its regulatory strategy. The Consumer Wellness segment demonstrated resilience and profitability despite market challenges, and the company is preparing for a U.S. public offering. These developments position Innocan well for future market recovery and growth.

Innocan Pharma’s LPT-CBD Shows Promising Results in Pain Relief Study

Innocan Pharma has published promising results from a study on its Synthetic Liposomal Cannabidiol (LPT-CBD) injections, which were administered to goats suffering from chronic pain. The study demonstrated sustained pain relief, improved mobility, and enhanced quality of life without adverse effects, suggesting potential for similar results in humans. This advancement in non-opioid chronic pain therapy highlights the long-term safety profile of LPT-CBD, particularly as it does not elevate liver enzymes, unlike repeated oral CBD intake.

Innocan Pharma to Showcase Innovative Pain Management Platform at 2025 ThinkEquity Conference

Innocan Pharma announced its participation in the 2025 ThinkEquity Conference, where it will present its innovative LPT-CBD injectable platform for chronic pain management. This participation provides Innocan with a valuable opportunity to share business updates and explore new market opportunities, potentially enhancing its industry positioning and stakeholder engagement.

Innocan Pharma Secures Patent for LPT-CBD in Japan, Strengthening Global IP Portfolio

Innocan Pharma announced that its patent for the Liposomal CBD Injection Technology (LPT-CBD) has been allowed in Japan, marking a significant milestone in the world’s third-largest pharmaceutical market. This patent, which covers a prolonged-release formulation of synthetic CBD, strengthens Innocan’s global intellectual property portfolio and supports its positioning as a leader in non-opioid chronic pain management solutions. The development of LPT-CBD, in collaboration with experts from the Hebrew University in Jerusalem, has shown promising results in preclinical studies, and the company is advancing towards FDA approval, potentially impacting its market presence and offering a new alternative for chronic pain management.

Innocan Pharma’s LPT-CBD Injections Transform Animal Care at Freedom Farm

Innocan Pharma has partnered with Freedom Farm to provide its LPT-CBD injections for animals suffering from chronic pain, significantly improving their quality of life. This collaboration highlights Innocan’s commitment to compassionate care and the potential of its technology to transform pain management in animals and humans, as demonstrated by the successful treatment of two goats at the sanctuary.

Innocan Pharma’s CBD Technology Gains Traction at PAINWeek Conference

Innocan Pharma’s presentation on its Liposomal Synthetic CBD Technology at the PAINWeek conference generated significant interest among participants, highlighting the potential of LPT-CBD as a breakthrough in chronic pain management. The presentation emphasized the limitations of plant-derived CBD oils and showcased preclinical data supporting the prolonged pain relief capabilities of LPT-CBD, marking a promising advancement in the field.