PharmAla Biotech Holdings, Inc. (MDMA) AI Stock Analysis

• Market Cap: C$11.43M
• Dividend Yield: N/A
• Average Volume (3M): 208.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -72.51%
• EPS Growth: -170.13%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 108,887,215
• 10 Day Avg. Volume: 94,242
• 30 Day Avg. Volume: 208,173
• PEG Ratio: -0.05
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 22.20
• P/FCF Ratio: -12.84
• 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: 48 Neutral
• Price Target: C$0.11 ▼(-0.91% Downside)

The score is primarily held back by weak financial fundamentals—deep losses and ongoing cash burn despite revenue growth—partly offset by a debt-free balance sheet. Technical indicators are mostly neutral, valuation is constrained by negative earnings and no dividend support, and recent corporate updates provide some positive execution and demand signals.

Positive Factors

Revenue Growth

The company's revenue growth indicates a strong demand for its products, which could lead to increased market share and financial stability over time.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Regulatory Approvals

Regulatory approvals enhance market access and credibility, potentially increasing sales and supporting long-term growth in the psychedelics market.

Negative Factors

Profitability Deterioration

Ongoing losses and negative gross profit indicate challenges in cost management and pricing power, which could hinder sustainable growth and financial health.

Cash Burn

Persistent cash burn may necessitate additional funding, potentially diluting existing shareholders and limiting the company's ability to invest in future growth.

Earnings Quality

Negative earnings quality reflects inefficiencies and could impact investor confidence, making it challenging to attract long-term investment and partnerships.

PharmAla Biotech Holdings, Inc. Business Overview & Revenue Model

Company Description

Pharmala Biotech Holdings Inc., doing business as PharmAla, focuses on the developing, manufacturing, and commercializing of substituted methylenedioxy-phenethylamines (MDXX) active pharmaceutical ingredients. It also provides MDXX class compounds, such as 1,3-Benzodioxolyl-Nmethylbutanamine (MBDB); and 3,4-Methylenedioxy-N-ethylamphetamine (MDEA/MDE), as well as formulations of MDXX compounds. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

PharmAla Biotech Holdings, Inc. generates revenue through the development and sale of MDMA-based pharmaceutical products. The company conducts extensive research and clinical trials to ensure the efficacy and safety of its products, which are then marketed to healthcare providers and institutions. Revenue streams include the licensing of patented compounds, collaboration with research institutions, and potential partnerships with healthcare organizations for distribution and commercialization. Regulatory approvals and advancements in the understanding of psychedelic therapies contribute significantly to the company's earnings potential.

PharmAla Biotech Holdings, Inc. Financial Statement Overview

Summary

PharmAla Biotech Holdings, Inc. demonstrates significant revenue growth but struggles with profitability, negative cash flows, and a declining equity position. Strong equity provides potential for future growth, yet effective cost and cash flow management are crucial for financial health.

Income Statement

PharmAla Biotech Holdings, Inc. has shown significant revenue growth in recent years, increasing from 78,070 to 1,035,297 annually. Nevertheless, the company remains unprofitable with negative net income and EBITDA margins, indicating ongoing challenges in managing operational costs effectively. The absence of EBIT suggests a need for improved cost management strategies.

Balance Sheet

The company's balance sheet reflects a strong equity position with no total debt, leading to a favorable debt-to-equity ratio. However, the decrease in stockholders' equity over time raises concerns. The equity ratio remains robust, but the company must manage liabilities to sustain financial stability.

Cash Flow

PharmAla Biotech Holdings, Inc. faces challenges in achieving positive free cash flow, with consistent negative values across the years. Operating cash flow to net income ratio indicates difficulties in converting revenue into cash flow, underscoring the need for better cash management practices to support growth.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	605.50K	1.04M	532.00K	78.07K	0.00
Gross Profit	-845.17K	887.44K	454.10K	75.78K	-303.00
EBITDA	-2.07M	-573.36K	-710.18K	-973.45K	-2.51M
Net Income	-2.18M	-823.60K	-779.81K	-985.58K	-2.51M
Balance Sheet
Total Assets	3.42M	2.90M	2.41M	2.33M	2.79M
Cash, Cash Equivalents and Short-Term Investments	960.66K	419.38K	195.04K	852.14K	2.47M
Total Debt	0.00	0.00	253.54K	0.00	0.00
Total Liabilities	961.73K	916.88K	1.03M	423.78K	138.48K
Stockholders Equity	2.46M	1.98M	1.38M	1.91M	2.66M
Cash Flow
Free Cash Flow	-1.05M	-547.78K	-846.39K	-1.62M	-435.76K
Operating Cash Flow	-1.04M	-321.36K	-339.66K	-625.37K	-173.57K
Investing Cash Flow	-935.27K	-226.42K	-506.74K	-994.87K	629.22K
Financing Cash Flow	1.60M	772.12K	189.29K	0.00	2.02M

PharmAla Biotech Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDMA, the sentiment is Negative. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 26.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MDMA.

PharmAla Biotech Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MDMA	48 Neutral	C$11.43M	-5.22	-85.96%	―	-72.51%	-170.13%
MRVL	42 Neutral	C$7.83M	-3.00	―	―	―	―
LEXT	42 Neutral	C$1.41M	-0.40	-293.33%	―	―	28.37%

PharmAla Biotech Holdings, Inc. Corporate Events

PharmAla Biotech Posts Rising Deposits as LaNeo MDMA Demand Builds and Australian Trial Plans Advance

PharmAla Biotech Holdings has released its audited financial statements for the fiscal year ended August 31, 2025, along with unaudited results for the first quarter of fiscal 2026, highlighting steady growth in customer deposits tied to its LaNeo MDMA clinical trial supply business. Customer deposits rose to $276,000 at year-end 2025 and further to $433,000 in Q1 2026, reflecting expanding demand for LaNeo MDMA, particularly in Australia where medical treatments using the product are now reimbursed by private insurers and the Department of Veterans Affairs. Management emphasized that the growing pipeline of clinical trial sales, combined with a recently filed short-form prospectus and an Australian lending partner, will help fund the company’s development efforts and its planned Phase 2a/b clinical trial in Australia, underscoring PharmAla’s strategy to translate its regulatory-first posture and unique supply position into accelerated growth in the psychedelics therapeutics market.

PharmAla Biotech Contracts UK CDMO for ALA-002 Manufacturing

PharmAla Biotech Holdings Inc. has announced that its subsidiary, PharmAla Biotech Australia, has contracted with a UK-based CDMO for the manufacturing of its ALA-002 drug substance. This strategic move is crucial for the company’s upcoming Phase 2 clinical trial in 2026, marking the development of a new Active Pharmaceutical Ingredient for human use since 2022. Additionally, PharmAla has completed a significant shipment of its LaNeo MDMA to Mount Sinai’s Parsons Research Center for clinical research, reinforcing its commitment to advancing psychedelic healing.

PharmAla Biotech Advances with Australian-Made MDMA Capsules

PharmAla Biotech Holdings Inc. has completed release testing of its first Australian-made batch of LaNeo™ MDMA 40mg capsules, marking a significant step in their production capabilities and market expansion. The company also finalized its contract with the Orygen Institute by delivering the last shipment of its Australian-made product to support a Phase 3 Trial on social anxiety in autistic youth, highlighting its commitment to advancing clinical research and its strategic positioning in the global psychedelics market.

PharmAla Biotech Expands Financing Options and Secures Australian R&D Funding

PharmAla Biotech Holdings Inc. has filed a final base shelf prospectus to offer flexibility in financing opportunities over a 25-month period, allowing the issuance of various securities. Additionally, its subsidiary, PharmAla Biotech Australia, has signed a term sheet with Radium Capital for a loan facility based on expected R&D Tax Incentive refunds, aiming to support its clinical trial work in Australia without risking its intellectual property.

PharmAla Biotech Launches NEXUS Portal and Announces Key Leadership Changes

PharmAla Biotech Holdings Inc. has launched NEXUS, a comprehensive tool designed to connect prescribers, therapists, and clinic managers involved in MDMA-assisted therapy. This initiative aims to enhance the delivery of care by facilitating communication and sharing of best practices among practitioners. Additionally, PharmAla announced the appointment of Farnoud Kazemzadeh as Chief Operating Officer, while also acknowledging the resignation of Dr. Harriet De Wit from its board of directors. These developments reflect PharmAla’s commitment to advancing its operational capabilities and strengthening its position in the psychedelics industry.

PharmAla Ships LaNeo™ MDMA to Johns Hopkins, Advances U.S. Research

PharmAla Biotech Holdings Inc. has successfully shipped its LaNeo™ MDMA to Johns Hopkins University from a new U.S. distribution site, marking a significant step for MDMA research in the U.S. This development is expected to support clinical trials and potentially expedite the acceptance of MDMA as a treatment for various disorders. Additionally, PharmAla has settled a debt of $150,000 by issuing common shares, reflecting its strategic financial management.