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

• Market Cap: C$10.89M
• Dividend Yield: N/A
• Average Volume (3M): 208.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -72.51%
• EPS Growth: -170.13%
• Country: US
• 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: 49 Neutral
• Price Target: C$0.12 ▲(8.18% Upside)

The score is held back primarily by weak financial performance: deteriorating profitability, negative gross profit, and ongoing cash burn despite improving revenue. Technicals are mixed with only modest near-term strength, and valuation is constrained by losses (negative P/E) with no dividend support.

Positive Factors

Revenue growth momentum

Sustained TTM revenue growth of ~24.6% signals expanding commercial traction and demand for clinical-grade MDMA materials. Over a 2–6 month horizon, rising topline strengthens the company’s ability to justify continued investment in production and trials and supports scaling commercial operations if margins improve.

Debt-free balance sheet

A debt-free capital structure materially reduces financial risk and preserves flexibility to fund regulatory, manufacturing, or clinical activities through equity or strategic partnerships. Over months, low leverage lowers insolvency risk and improves options for non-dilutive collaborations or staged financing.

Strategic clinical supply agreement

A binding sales and data-sharing agreement with a European hospital trust is a structural commercial milestone. It creates a repeatable clinical sales channel, strengthens credibility with regulators and trial sponsors, and can provide clinical data feedback that supports product adoption and future commercial contracts.

Negative Factors

Negative gross profit and large losses

Negative gross profit indicates unit economics that do not cover direct production costs, a fundamental structural problem. Persisting at-scale negative gross margins prevent progress toward sustainable profitability and require material cost reductions or pricing power to restore business viability over the medium term.

Negative operating and free cash flow

Ongoing negative operating and free cash flow represent structural cash burn that will necessitate external funding or draw on reserves. Repeated financing can dilute shareholders or raise financing costs, constraining long-term investment in manufacturing scale-up and clinical programs unless cash generation reverses.

Deteriorating profitability and negative ROE

Worsening profitability and materially negative returns on equity indicate the company is eroding shareholders’ capital. Without a durable path to positive margins or scalable economics, the company risks long-term value destruction and faces pressure to change strategy or raise significant external capital.

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

Despite TTM revenue growth (+24.6%), the company is deeply unprofitable with negative gross profit and very large operating/net losses, and profitability deteriorated versus 2024. No debt reduces financial risk, but ongoing negative operating cash flow and free cash flow indicate continued cash burn and potential funding needs.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved (+24.6%), but the business remains deeply unprofitable with negative gross profit and very large operating and net losses (net margin roughly -279%). Profitability deteriorated versus 2024, when gross profit was positive and losses were materially smaller, indicating a step-down in cost structure and/or pricing power. Strength is the recent top-line momentum, but margins and earnings quality are the key weakness.

Balance Sheet

The balance sheet is conservatively financed with no debt in the most recent periods (debt-to-equity at 0), which reduces financial risk and gives flexibility. Equity has been maintained at a moderate level (~$2.37M TTM), but returns on equity are meaningfully negative due to ongoing losses, which is a clear pressure point. Overall: low leverage is a strength; persistent losses are eroding the economic value of the equity base.

Cash Flow

Cash generation remains weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -$0.92M and -$0.93M), and free cash flow declined versus the prior annual period. A modest positive is that free cash flow is roughly in line with net loss (free cash flow to net income near 1x), suggesting losses are not wildly disconnected from cash usage, but the company is still consuming cash and may require continued funding if this persists.

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: Positive

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 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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	49 Neutral	C$10.89M	-4.98	-85.96%	―	-72.51%	-170.13%
MRVL	42 Neutral	C$8.12M	-3.11	―	―	―	―
LEXT	41 Neutral	C$1.41M	-0.54	-293.33%	―	―	28.37%

PharmAla Biotech Holdings, Inc. Corporate Events

PharmAla Wins Østfold Hospital Trust Deal to Supply LaNeo MDMA for Depression Trial

PharmAla Biotech has signed a supply agreement with Norway’s Østfold Hospital Trust to provide its LaNeo-branded MDMA for clinical research into MDMA as a potential treatment for major depressive disorder, following a competitive vendor review and extensive due diligence. The deal, which includes both financial and data-sharing components, underscores PharmAla’s strengthening role in Europe’s psychedelic medicine research ecosystem and leverages its established regional value chain, while also enhancing its clinical footprint by encouraging researchers to transition existing trial protocols to its LaNeo MDMA platform through dedicated support tools and potential data-sharing discounts.

The most recent analyst rating on (TSE:MDMA) stock is a Hold with a C$0.11 price target. To see the full list of analyst forecasts on PharmAla Biotech Holdings, Inc. stock, see the TSE:MDMA Stock Forecast page.

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.