Pharmadrug (PHRX) AI Stock Analysis

• Market Cap: C$1.62M
• Dividend Yield: N/A
• Average Volume (3M): 101.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.43
• Revenue Growth: N/A
• EPS Growth: 98.93%
• Country: CA
• Employees: 9
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 108,234,380
• 10 Day Avg. Volume: 83,723
• 30 Day Avg. Volume: 101,798
• PEG Ratio: 0.01
• Price to Book (P/B): -0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.35
• 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: 29 Underperform
• Price Target: ―

Pharmadrug's overall score is significantly impacted by its weak financial performance, characterized by zero revenue, high leverage, and negative cash flows. While there is some short-term technical momentum, the lack of profitability and negative valuation metrics pose substantial risks to potential investors.

Positive Factors

Strategic Financial Move

Issuing debentures can provide necessary capital to manage debt and fund operations, potentially stabilizing financial health long-term.

Business Model Focus

Pharmadrug's focus on novel therapies in mental health and pain management positions it in high-demand sectors, enhancing long-term growth potential.

Partnership and Licensing Revenue

Partnerships and licensing provide diversified revenue streams, reducing reliance on direct sales and enhancing financial stability over time.

Negative Factors

Zero Revenue

Zero revenue indicates challenges in product commercialization and market penetration, threatening long-term viability and growth.

High Leverage

High leverage increases financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term sustainability.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and liquidity issues, hindering the company's ability to invest in growth and innovation.

Pharmadrug Business Overview & Revenue Model

Company Description

Pharmadrug Inc. operates as a specialty pharmaceutical company. It focuses on the research, development, and commercialization of controlled-substances and natural medicines, such as psychedelics, cannabis, and naturally-derived approved drugs. It also imports and distributes medical cannabis to pharmacies in Germany and rest of the European Union; and owns and operates Super Smart, an entity building to elevate the use of functional mushrooms and psilocybin mushrooms. In addition, the company engages in the researching and reformulating established natural medicines. It has a research agreement with the University of Michigan to evaluate N, N-dimethyltryptamine's (DMT) potential role in normal, diseased, and altered states of consciousness, as well as an agreement with Southwest Research Institute for initiating non-clinical and clinical manufacturing of cepharanthine; and clinical trial agreement with Johns Hopkins University to conduct a clinical study comparing acute and enduring psychological and neural effects of DMT and an undisclosed potently active comparator molecule. The company was formerly known as Aura Health Inc. and changed its name to Pharmadrug Inc. in October 2019. The company is based in Toronto, Canada.

How the Company Makes Money

Pharmadrug makes money primarily through the sale and licensing of its pharmaceutical products. The company's revenue streams include direct sales of its therapies to healthcare providers, partnerships with other pharmaceutical firms for the co-development and distribution of drugs, and licensing agreements that allow third parties to market and sell its products in different regions. Pharmadrug may also engage in research collaborations with academic institutions and other biotech companies, generating additional income through milestone payments and royalties. Furthermore, the company could potentially benefit from government grants or incentives for developing innovative treatments in under-served therapeutic areas.

Pharmadrug Financial Statement Overview

Summary

Pharmadrug is in a precarious financial position with no revenue and significant losses across all financial statements. The negative equity and high leverage are serious concerns, and the negative cash flows further underline the company's struggles. Urgent strategic intervention is required to stabilize and improve the financial health of the company.

Income Statement

The company has reported zero revenue in the latest period, with significant negative margins across the board. Both the gross profit and net income are heavily negative, indicating substantial losses. The lack of revenue growth and declining profitability metrics signal challenging times for the company.

Balance Sheet

The company has a negative stockholders' equity, which is a significant concern, reflecting high leverage and financial instability. The debt levels are substantial compared to assets, posing potential risks for financial sustainability. The equity ratio indicates that liabilities exceed assets, further highlighting financial distress.

Cash Flow

The operating cash flow is negative, indicating the company is not generating enough cash from its core operations. The free cash flow is also negative, suggesting cash flow challenges. While there are inflows from investing activities, the overall cash flow position is weak, hinting at potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	7.01K	683.67K
Gross Profit	-50.24K	-50.24K	-26.22K	-2.26K	-2.15K	182.04K
EBITDA	-133.04K	-549.04K	-1.33M	-2.34M	-4.21M	-4.28M
Net Income	-337.94K	-793.27K	-13.20M	-8.88M	-5.87M	-5.15M
Balance Sheet
Total Assets	578.37K	711.80K	1.20M	12.11M	19.52M	13.69M
Cash, Cash Equivalents and Short-Term Investments	17.72K	75.04K	423.06K	329.24K	1.30M	4.40M
Total Debt	1.43M	1.35M	1.77M	1.42M	866.37K	1.13M
Total Liabilities	2.00M	1.96M	2.66M	3.28M	2.66M	3.12M
Stockholders Equity	-1.55M	-1.40M	-1.70M	8.84M	16.87M	9.66M
Cash Flow
Free Cash Flow	-80.90K	-768.60K	-671.88K	-2.26M	-4.17M	-1.43M
Operating Cash Flow	-80.90K	-756.62K	-671.88K	-2.26M	-4.13M	-1.41M
Investing Cash Flow	-11.98K	-11.98K	995.04K	77.58K	1.48M	3.78M
Financing Cash Flow	-4.44K	321.56K	225.51K	843.25K	776.97K	132.24K

Pharmadrug Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PHRX, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.01, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PHRX.

Pharmadrug 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%
RVV	46 Neutral	C$4.19M	-0.39	-664.21%	―	―	-80.42%
RAMM	45 Neutral	C$4.78M	-0.36	-69.77%	―	-15.51%	-49.26%
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%
AION	31 Underperform	C$2.42M	-0.64	―	―	563.34%	-68.82%
PHRX	29 Underperform	C$1.62M	-6.52	―	―	―	98.93%

Pharmadrug Corporate Events

PharmaDrug Completes Strategic Debenture Issuance

PharmaDrug Inc. has successfully issued over $412,000 in debentures to replace its outstanding secured convertible debentures, along with over 8 million common share purchase warrants. These debentures, convertible into common shares at $0.05 each, are secured by a general security agreement and carry no interest unless unpaid at maturity, marking a strategic financial move for the company.