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Unity Biotechnology Inc (UBX)
NASDAQ:UBX

Unity Biotechnology (UBX) AI Stock Analysis

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Unity Biotechnology

(NASDAQ:UBX)

34Underperform
Unity Biotechnology's stock score reflects significant financial challenges, with continuous losses and negative cash flows being primary concerns. The company's stock is trading in a bearish technical pattern, indicating potential further declines. However, the appointment of a seasoned expert to the board offers a strategic advantage that could improve the company's future prospects in biotechnology.
Positive Factors
Drug Performance
UBX1325 explicitly achieved non-inferiority to aflibercept for 9 out of 10 time points through 36 weeks, reflecting a completely novel approach in retinal disease.
Earnings
The analyst's recommendation remains 'Outperform' with a price target of $6.00, indicating confidence in the stock's future performance.
Treatment Option
UBX1325 showed outperformance of aflibercept for patients with less aggressive disease, suggesting a prospective option for 2L treatment subsequent to standard of care anti-VEGF.
Negative Factors
Data Imbalance
There were considerably more Vabysmo (faricimab) patients in the UBX1325 group, compared to aflibercept, reflecting a relevant imbalance.
Endpoint Miss
The study missed the primary endpoint of non-inferiority vs aflibercept using the average of 20-week and 24-week BCVA letters change from baseline.
Trial Results
The Phase 2B ASPIRE study of intravitreal foselutoclax (UBX1325) in diabetic macular edema patients did not meet the non-inferiority analysis specifically at the average of weeks 20 and 24 for the primary analysis.

Unity Biotechnology (UBX) vs. S&P 500 (SPY)

Unity Biotechnology Business Overview & Revenue Model

Company DescriptionUnity Biotechnology, Inc., a biotechnology company, engages in the research and development of therapeutics to slow, halt, or reverse diseases of aging. The company's lead drug candidate includes UBX1325, which is Phase II clinical trial for the treatment of age-related diseases of the eye, including diabetic macular edema, age-related macular degeneration, and diabetic retinopathy. It also develops UBX1967 for the treatment of ophthalmologic diseases; UBX2050, a human anti-Tie2 agonist monoclonal antibody for the treatment of age-related eye diseases; and UBX2089, a a-Klotho hormone drug candidate for multiple neurology indications. The company was formerly known as Forge, Inc. and changed its name to Unity Biotechnology, Inc. in January 2015. Unity Biotechnology, Inc. was incorporated in 2009 and is headquartered in South San Francisco, California.
How the Company Makes MoneyUnity Biotechnology makes money through the development and commercialization of its therapeutic products targeting senescent cells. The company's revenue model primarily relies on milestone payments, licensing deals, and potential royalties from partnerships with larger pharmaceutical companies. Unity may also generate income from collaborations with other biotech firms or research institutions, which can provide funding for research and development activities. Additionally, the company might raise capital through public or private investments to support its ongoing research and clinical trials, which are crucial for bringing its products to market.

Unity Biotechnology Financial Statement Overview

Summary
Unity Biotechnology faces significant financial challenges with zero revenue and continuous losses affecting its financial health. High leverage and negative cash flows pose risks, while liquidity from cash reserves offers limited short-term relief. The company's focus on R&D may delay profitability, requiring strategic changes to improve financial performance.
Income Statement
10
Very Negative
The company has consistently reported zero revenue in recent years, with a significant net loss of $25.99 million in 2024. EBIT and EBITDA margins are negative due to high operating costs and no revenue generation, indicating financial instability and a challenging path to profitability.
Balance Sheet
20
Very Negative
Unity Biotechnology's balance sheet shows a high debt-to-equity ratio due to decreasing equity and increasing debt levels. The equity ratio is low, reflecting financial risk. However, cash reserves of $23.23 million provide some liquidity, although the declining trend in stockholders' equity is concerning.
Cash Flow
15
Very Negative
The company reported a negative free cash flow and operating cash flow in recent years, indicating cash burn without revenue generation. The lack of operating cash inflow highlights reliance on financing activities, which may not be sustainable long-term.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.00236.00K4.78M0.00
Gross Profit
0.00-19.70M-1.94M1.90M-3.45M
EBIT
-31.17M-44.67M-57.57M-56.66M-93.93M
EBITDA
-31.17M-37.28M-38.73M-54.67M-89.10M
Net Income Common Stockholders
-25.99M-39.86M-57.75M-60.04M-91.87M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.23M43.20M94.80M88.08M97.70M
Total Assets
37.66M65.69M124.35M124.71M156.32M
Total Debt
19.71M26.99M47.36M51.56M58.98M
Net Debt
12.13M7.19M34.62M18.65M41.17M
Total Liabilities
31.17M37.29M57.50M65.14M73.44M
Stockholders Equity
6.49M28.40M66.85M59.57M82.88M
Cash FlowFree Cash Flow
-20.86M-37.10M-51.13M-45.26M-78.98M
Operating Cash Flow
-20.86M-38.65M-51.03M-45.06M-78.33M
Investing Cash Flow
8.56M60.49M-24.55M39.31M-5.21M
Financing Cash Flow
77.00K-16.34M54.85M20.84M63.88M

Unity Biotechnology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.04
Price Trends
50DMA
1.85
Negative
100DMA
1.54
Negative
200DMA
1.49
Negative
Market Momentum
MACD
-0.18
Positive
RSI
27.67
Positive
STOCH
6.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBX, the sentiment is Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.85, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 27.67 is Positive, neither overbought nor oversold. The STOCH value of 6.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UBX.

Unity Biotechnology Risk Analysis

Unity Biotechnology disclosed 53 risk factors in its most recent earnings report. Unity Biotechnology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Unity Biotechnology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$6.83B29.5419.71%52.97%
48
Neutral
$6.84B1.02-53.11%2.50%16.84%0.92%
48
Neutral
$19.64M-634.71%0.44%16.44%
42
Neutral
$97.33M-54.21%-78.55%-0.92%
39
Underperform
$6.98M82.91%64.20%73.71%
UBUBX
34
Underperform
$19.23M-148.97%47.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UBX
Unity Biotechnology
1.04
-0.62
-37.35%
ONCY
Oncolytics Biotech
0.55
-0.51
-48.11%
SRPT
Sarepta Therapeutics
63.82
-64.58
-50.30%
CRIS
Curis
2.10
-10.58
-83.44%
FATE
Fate Therapeutics
0.79
-6.29
-88.84%
BTAI
Bioxcel Therapeutics
2.03
-43.09
-95.50%

Unity Biotechnology Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Unity Biotechnology Appoints Dr. Yehia Hashad to Board
Positive
Mar 10, 2025

On March 8, 2025, UNITY Biotechnology appointed Dr. Yehia Hashad to its Board of Directors and Science Committee. Dr. Hashad, an experienced ophthalmologist and executive at Bausch + Lomb, brings over 25 years of leadership in global research and development. His expertise is expected to aid UNITY in advancing its UBX1325 program for diabetic macular edema and other ophthalmologic treatments, potentially enhancing the company’s strategic positioning in the biotechnology sector.

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.