InnoCan Pharma (INNO) AI Stock Analysis

• Market Cap: C$32.08M
• Dividend Yield: N/A
• Average Volume (3M): 920.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.54
• 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: 46 Neutral
• Price Target: C$8.50 ▲(13.33% Upside)

The score is weighed down primarily by weak financial performance (ongoing losses and deteriorating cash flow despite strong gross margins and low leverage). Technicals also remain soft with negative MACD and price below key longer-term moving averages. Valuation is only mildly supportive because the negative P/E reflects lack of profitability and no dividend data is available.

Positive Factors

High Gross Margin

An 88.45% gross margin is a durable structural advantage: it indicates strong unit economics or premium product pricing that can absorb SG&A and R&D without immediate margin collapse, supporting sustained investment in development and commercialization over months.

Proprietary Delivery Technology

Ownership of proprietary cannabinoid delivery platforms creates a meaningful competitive moat: differentiated formulations and controlled-release tech can support higher pricing, licensing, and partnerships, and form the basis of lasting revenue streams beyond commodity product sales.

Low Leverage

A low debt-to-equity ratio provides financial flexibility and lowers default risk, enabling the company to fund trials, commercialization, or strategic partnerships without onerous interest burdens. This balance-sheet strength supports resilience over the next several quarters.

Negative Factors

Negative Profitability

Sustained negative profitability and negative operating margins indicate the business is not yet self-sustaining; this limits retained earnings for reinvestment and requires either rapid operating improvement or external capital to fund growth and translate gross-margin strength into net profits.

Weak Cash Generation

Severely deteriorated free cash flow growth and negative operating cash conversion reduce runway and increase reliance on financing. Over a multi-month horizon this constrains R&D, commercialization budgets, and strategic flexibility, raising dilution and execution risk.

Limited Revenue Growth

Modest top-line growth limits the company's ability to scale fixed costs and leverage high gross margins into sustainable operating profits. Without stronger revenue expansion, margin improvement and return on R&D investments may remain constrained over the next several quarters.

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

Strong gross margin (88.45% TTM) and low leverage (debt-to-equity 0.33) are positives, but overall fundamentals are pressured by negative profitability (net margin -5.47%, negative EBIT/EBITDA) and weak cash generation (free cash flow growth -218.98% TTM, negative operating cash flow to net income).

Income Statement

InnoCan Pharma shows a strong gross profit margin of 88.45% TTM, indicating effective cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -5.47% TTM and negative EBIT and EBITDA margins. Revenue growth is modest at 2.68% TTM, suggesting limited expansion in sales.

Balance Sheet

The balance sheet reflects a manageable debt-to-equity ratio of 0.33 TTM, indicating low leverage. However, the return on equity is negative at -32.82% TTM, highlighting profitability challenges. The equity ratio is not provided, but the overall stability appears moderate with room for improvement in profitability.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate of -218.98% TTM, indicating declining cash generation. The operating cash flow to net income ratio is negative, suggesting cash flow issues. However, the free cash flow to net income ratio is positive at 1.04 TTM, indicating some ability to cover net losses with free cash flow.

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.89, below the 50-day MA of 8.94, and below the 200-day MA of 12.59, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 40.27 is Neutral, 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%
ATLE	50 Neutral	C$54.59M	-2.71	-19.76%	―	26.91%	81.01%
INNO	46 Neutral	C$32.08M	-7.13	-71.80%	―	-3.94%	-17.62%
VM	46 Neutral	C$26.79M	-7.61	-256.01%	―	―	―
AVCN	46 Neutral	C$21.82M	-11.28	-77.67%	―	2.41%	74.61%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%

InnoCan Pharma Corporate Events

Innocan Pharma Targets NYSE American Listing With Concurrent Offering

Innocan Pharma Corporation plans to list its common shares on the NYSE American around January 30, 2026, subject to final exchange approval, while simultaneously conducting a concurrent securities offering that will be detailed in future regulatory filings. The company’s shares will continue trading on the OTCQB until roughly January 29, 2026, after which OTCQB trading will cease once the NYSE American listing becomes effective, while its listing on the Canadian Securities Exchange under the symbol INNO will remain unchanged, positioning Innocan for broader U.S. investor exposure and potentially enhanced liquidity without requiring any action from existing shareholders.

The most recent analyst rating on (TSE:INNO) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on InnoCan Pharma stock, see the TSE:INNO Stock Forecast page.

Innocan Pharma Targets NYSE American Listing with Concurrent Securities Offering

Innocan Pharma Corporation plans to list its common shares on the NYSE American around January 7, 2026, pending final approval of its listing application and continued compliance with exchange requirements. In conjunction with the anticipated U.S. listing, the company is arranging a concurrent securities offering, subject to market conditions and regulatory clearance, while its shares will cease trading on the OTCQB once the NYSE American listing is effective and will continue to trade on the Canadian Securities Exchange under the symbol INNO. The move is poised to broaden Innocan’s access to U.S. capital markets and investor base, potentially strengthening its financial flexibility and visibility as it advances its pharmaceutical and wellness product platforms.

The most recent analyst rating on (TSE:INNO) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on InnoCan Pharma stock, see the TSE:INNO Stock Forecast page.

Innocan Pharma Unveils Promising Advances in CBD Drug Delivery Platform

Innocan Pharma announced promising preliminary findings regarding its liposomal cannabidiol (LPT-CBD) technology. Results from tests conducted on Göttingen minipigs demonstrated sustained CBD release in plasma for 28 days after a single subcutaneous injection, with comparable CBD metabolism to human systems and an excellent safety profile. This advancement strengthens its alignment with FDA non-clinical development plans and signifies a noteworthy step toward translating the technology into human applications, reaffirming the company’s leadership in biotechnology and pharmaceutical innovation.

The most recent analyst rating on (TSE:INNO) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on InnoCan Pharma stock, see the TSE:INNO Stock Forecast page.

Innocan Pharma Files Amended Registration for U.S. Public Offering

Innocan Pharma has announced the public filing of an amended registration statement for a proposed public offering in the United States. The offering will consist of units comprising common shares and warrants, with plans to list these on NYSE American. This move is part of Innocan’s strategy to expand its market presence and enhance its financial capabilities, potentially impacting its operations and positioning within the pharmaceutical industry.

The most recent analyst rating on (TSE:INNO) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on InnoCan Pharma stock, see the TSE:INNO Stock Forecast page.

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.

The most recent analyst rating on (TSE:INNO) stock is a Sell with a C$12.00 price target. To see the full list of analyst forecasts on InnoCan Pharma stock, see the TSE:INNO Stock Forecast page.

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.

The most recent analyst rating on (TSE:INNO) stock is a Hold with a C$15.50 price target. To see the full list of analyst forecasts on InnoCan Pharma stock, see the TSE:INNO Stock Forecast page.