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Kane Biotech Inc (TSE:KNE)
:KNE
Canadian Market

Kane Biotech (KNE) AI Stock Analysis

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Kane Biotech

(KNE)

Rating:43Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
Kane Biotech's overall stock score reflects its financial instability as the most significant factor, characterized by ongoing losses and negative equity. While there are positive developments such as revenue growth and strategic partnerships, these are overshadowed by the bearish technical indicators and valuation challenges. The company's efforts in securing additional funding and expanding market presence provide some optimism, but the primary focus must remain on achieving financial stability.

Kane Biotech (KNE) vs. iShares MSCI Canada ETF (EWC)

Kane Biotech Business Overview & Revenue Model

Company DescriptionKane Biotech Inc., a biotechnology company, engages in the research, development, and commercialization of technologies and products that prevent and remove microbial biofilms in Canada and internationally. The company develops pet oral care products under the StrixNB and bluestem brands; animal and human wound care solutions under the DispersinB name; shampoos for dogs, cats, and horses under the Alosera name; and medical device coatings under the Aledex name. It also offers scalp care products under the DermaKB brand name, wound care products under the Coactiv+ brand name, as well as other products under the goldstem, silkstem, and DermaKB Biofilm brand names. Kane Biotech Inc. was incorporated in 2001 and is based in Winnipeg, Canada.
How the Company Makes MoneyKane Biotech generates revenue through the commercialization of its proprietary technologies and products designed to combat biofilms. The company's revenue streams include product sales, licensing agreements, and strategic partnerships. Kane Biotech sells its products directly to consumers and through distribution channels, targeting both the healthcare and animal health markets. Additionally, the company enters into licensing agreements with other entities to utilize its biofilm technologies, which provides a stream of royalty income. Strategic partnerships with other companies also contribute to Kane Biotech's earnings, enabling collaborative development and expanded market reach.

Kane Biotech Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q3-2024)
|
% Change Since: -16.67%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth driven by new product sales and service revenue streams. Strategic partnerships, regulatory approvals, and expansion into new markets were noted as positive developments. However, increased operating expenses and a decrease in cash reserves were challenges mentioned. Overall, the positive developments notably outweigh the drawbacks.
Q3-2024 Updates
Positive Updates
Significant Increase in Product Sales
Product sales for Q3 2024 were $598,000 compared to $4,000 in Q3 2023, primarily due to the first commercial sales of revyve Antimicrobial Wound Gel to the U.S. distributor ProgenaCare.
Introduction of New Revenue Streams
Product services revenue for Q3 2024 was $685,000, derived from animal health, manufacturing, and quality control services after the sale of STEM Animal Health subsidiary.
Improved Financial Performance
Total revenue for Q3 2024 was $1,283,000 compared to $27,000 in Q3 2023. Gross profit was $559,000 compared to $23,000 in the previous year.
Strategic Partnerships and Certifications
Kane Biotech received ISO 1345:2016 MDSAP quality certification and secured a licensing agreement with Omni Bioceutical Innovations for the DermaKB line.
Regulatory Approvals and Expansion
Received FDA approval to increase the dosage allowance for revyve Antimicrobial Wound Gel and Health Canada approval for the same product. Distribution agreements were announced for international markets.
Funding and Development Initiatives
NRC IRAP funding received for revyve Antimicrobial Wound Gel and the development of DispersinB Wound Gel, with participation from a major wound care company.
Acquisition of FB Dermatology
The agreement to acquire FB Dermatology is expected to enhance commercial reach and technology portfolio, including products like LumiHeal and Kleresca.
Negative Updates
Increased Operating Expenses
Total operating expenses for Q3 2024 were $1,170,000, an increase of 18% compared to $995,000 for Q3 2023, due to higher employee compensation, consulting, travel, and investor relation expenses.
Cash Position Decrease
Cash as of September 30, 2024, was $544,000 compared to $749,000 as of December 31, 2023, indicating a decrease in cash reserves.
Company Guidance
During Kane Biotech's Q3 2024 earnings call, the guidance highlighted several key achievements and future expectations. The company recorded its first commercial sales of revyve Antimicrobial Wound Gel, contributing to product sales of $598,000 for the quarter, compared to just $4,000 in Q3 2023. Total revenue reached $1,283,000, significantly up from $27,000 in the previous year, with a gross profit of $559,000. Operating expenses increased by 18% to $1,170,000. Despite these expenses, the net loss from continuing operations decreased by 45% to $679,000. Kane Biotech is anticipating further growth, with plans for additional distribution agreements, regulatory approvals, and the launch of new products, including DispersinB Wound Gel trials and potential enhancements to their Lumixa product. Additionally, a $3 million private placement was announced to support these initiatives.

Kane Biotech Financial Statement Overview

Summary
Kane Biotech is facing significant financial challenges with declining revenues, negative profit margins, and a weak balance sheet due to negative equity. Cash flow issues persist with negative operating cash flow and reliance on external financing.
Income Statement
30
Negative
The income statement shows a significant decline in revenues over the recent periods, with the TTM (Trailing-Twelve-Months) revenue decreasing compared to the previous periods. Gross profit margins are negative, indicating cost of goods sold exceeds revenues. Net profit margins are also negative despite a positive net income due to extraordinary items. EBIT and EBITDA margins are significantly negative, highlighting operating challenges.
Balance Sheet
25
Negative
The balance sheet indicates a negative equity position, suggesting liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but high total debt levels indicate high leverage. The equity ratio is negative, reflecting financial instability and potential insolvency risks.
Cash Flow
40
Negative
Cash flows are under pressure with negative operating cash flow and consistent negative free cash flow, indicating cash outflows exceed inflows from operations. The company relies heavily on financing activities, as indicated by substantial financing cash inflows in previous periods. However, recent periods show negative financing cash flow, reducing cash reserves.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
1.32M148.98K2.67M1.61M1.34M1.69M
Gross Profit
-103.46K109.47K1.41M568.44K526.86K609.91K
EBIT
-3.98M-3.36M-3.36M-4.88M-4.22M-3.59M
EBITDA
-3.85M-3.23M-2.95M-4.25M-3.65M-764.08K
Net Income Common Stockholders
5.60M-5.03M-3.89M-4.60M-3.72M-960.18K
Balance SheetCash, Cash Equivalents and Short-Term Investments
568.25K749.25K1.10M1.15M1.01M834.13K
Total Assets
1.68M5.68M5.62M6.13M5.04M2.76M
Total Debt
0.009.26M6.86M4.71M2.25M169.81K
Net Debt
-568.25K8.51M5.75M3.56M1.24M-664.31K
Total Liabilities
69.93K14.09M9.76M7.70M3.96M1.92M
Stockholders Equity
1.61M-10.56M-6.52M-3.89M-1.49M836.81K
Cash FlowFree Cash Flow
-5.67M-3.23M-3.13M-2.64M-4.07M-1.05M
Operating Cash Flow
-5.62M-3.22M-3.04M-2.29M-3.94M-955.37K
Investing Cash Flow
9.01M-116.14K-107.55K-373.55K-166.11K-97.38K
Financing Cash Flow
-5.61M2.98M3.10M2.81M4.28M1.81M

Kane Biotech Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.05
Price Trends
50DMA
0.08
Negative
100DMA
0.09
Negative
200DMA
0.11
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
35.47
Neutral
STOCH
42.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KNE, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.08, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KNE.

Kane Biotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$5.31B3.28-45.10%2.80%16.76%0.02%
TSKNE
43
Neutral
C$8.29M-813.02%
42
Neutral
C$9.74M-175.45%-3.93%-575.24%
TSHEM
41
Neutral
C$16.71M34.47%43.45%
TSRVX
C$11.37M
TSSBM
C$15.29M
$9.02M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:KNE
Kane Biotech
0.06
-0.08
-57.14%
TSE:HEM
Hemostemix
0.12
0.06
100.00%
TSE:BLAB
Britannia Life Sciences Inc
0.06
<0.01
20.00%
TSE:RVX
Resverlogix
0.04
-0.01
-20.00%
TSE:SBM
Sirona Biochem
0.06
0.02
50.00%
BETRF
BetterLife Pharma
0.07
-0.02
-22.22%

Kane Biotech Corporate Events

Executive/Board ChangesLegal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Kane Biotech Reports Q1 2025 Results Amid Restructuring Efforts
Neutral
May 29, 2025

Kane Biotech reported a significant increase in revenue for the first quarter of 2025, primarily from contract animal health manufacturing, despite a net loss. The company is undergoing a restructuring strategy to focus on its revyve™ product line and has implemented cost-reduction initiatives to strengthen its financial position. The departure of the CEO and subsequent legal action are notable developments, but the company remains committed to advancing its pipeline and creating long-term value for stakeholders.

Private Placements and Financing
Kane Biotech Secures $2.2 Million Through Private Placement and Insider Loan
Positive
May 5, 2025

Kane Biotech has successfully closed a private placement offering, raising $1.2 million through the issuance of 12 million shares to company insiders. Additionally, the company secured a $1 million unsecured loan from an insider, both transactions being classified as related party transactions. The funds will be used for working capital and general corporate purposes, potentially strengthening Kane Biotech’s financial position and operational capabilities.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Kane Biotech Reports 2024 Financials, Refocuses Strategy and Announces Leadership Change
Neutral
Apr 28, 2025

Kane Biotech reported its financial results for the fourth quarter and full year 2024, showing a significant increase in revenue but a net loss for the year. The company is narrowing its strategic focus to its biofilm dispersion technology-based wound care products, particularly the revyve line, and is reorganizing its distribution approach in the U.S. market. A leadership change was also announced, with Dr. Robert Huizinga stepping in as interim CEO, following the departure of Marc Edwards.

Business Operations and Strategy
Kane Biotech Revises Marketing Agreement with Outside the Box Capital
Neutral
Apr 12, 2025

Kane Biotech has announced the termination of its previous service agreement with Outside the Box Capital Inc. (OTBC) and the initiation of a new agreement to enhance its marketing efforts within the financial community. This change was prompted by a policy update from the TSX Venture Exchange prohibiting the issuance of shares as compensation for investor relations services. Under the new agreement, OTBC will receive a cash payment and stock options, aligning with Kane Biotech’s strategic focus on broadening its media distribution and market awareness.

Product-Related AnnouncementsBusiness Operations and Strategy
Kane Biotech Secures Approval for DispersinB® Acne Trial
Positive
Mar 13, 2025

Kane Biotech has received approval from the University of Miami Health System’s Internal Review Board to commence a clinical study of its DispersinB® Acne Cleanser for treating mild to moderate Acne Vulgaris. This trial, set to begin mid-year at the University of Miami Miller School of Medicine, marks a significant milestone for Kane Biotech as it continues to advance its mission of providing innovative dermatological solutions, potentially impacting millions of individuals suffering from acne.

Product-Related AnnouncementsBusiness Operations and Strategy
Kane Biotech Partners with Best Buy Medical for Canadian Distribution of revyve™ Wound Gel
Positive
Mar 11, 2025

Kane Biotech has entered into a three-year distribution agreement with Best Buy Medical Canada for its revyve™ Antimicrobial Wound Gel, following Health Canada approval in November 2024. This strategic partnership aims to expand access to the wound care solution across Canada, targeting hospitals, clinics, and long-term care facilities. The collaboration is expected to enhance patient care and outcomes while tapping into the Canadian wound care market’s financial potential.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.