Want to see ADAG full AI Analyst Report?
Top Page
Adagene
(NASDAQ:ADAG)
Select Model
Select Model
Rating:40Underperform
Price Target:
$2.50
▼(-35.90% Downside)
Action:Downgraded
Date:10/17/26
The score is driven primarily by weak financial quality—persistent losses, volatile revenue, and ongoing negative operating/free cash flow—partly offset by an improved 2025 trajectory and manageable leverage. Technicals further weigh on the score due to a strong downtrend and negative momentum, while valuation offers limited support because the company remains unprofitable and pays no dividend.
Positive Factors
Pipeline Advancement
Regulatory clearance moves ADG138 from preclinical development toward human testing, expanding Adagene’s clinical pipeline and providing an additional opportunity to validate its SAFEbody technology. Advancement into the clinic can support future partnering and portfolio diversification.
Negative Factors
Persistent Unprofitability
Ongoing operating and net losses show that Adagene has not yet established a self-sustaining commercial earnings model. Even with improvement in 2025, continued losses can constrain investment capacity, increase dependence on financing, and make long-term returns reliant on successful clinical and commercial execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Pipeline Advancement
Regulatory clearance moves ADG138 from preclinical development toward human testing, expanding Adagene’s clinical pipeline and providing an additional opportunity to validate its SAFEbody technology. Advancement into the clinic can support future partnering and portfolio diversification.
Read all positive factors
Adagene (ADAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$167.19M
Dividend YieldN/A
Average Volume (3M)344.52K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth8906.15%
EPS Growth41.48%
CountryUS
Employees128
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.47
Shares Outstanding67,143,340
10 Day Avg. Volume318,575
30 Day Avg. Volume344,525
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.02
Price to Sales (P/S)9.30
P/FCF Ratio-4.55
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue14.23
Enterprise Value/Gross Profit15.10
Enterprise Value/Ebitda-6.07
Forecast
1Y Price Target
$8.50Price Target Upside117.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.48
Revenue Forecast (FY)$5.16M
Adagene Business Overview & Revenue Model
Company Description
Adagene Inc. functions as a clinical-stage biopharmaceutical organization, primarily concentrating on the identification, evolution, and fabrication of monoclonal antibody-based therapeutics engineered to combat various types of cancer. The compan...
Adagene Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
64
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.32M | 7.67M | 103.20K | 18.11M | 9.29M | 10.18M |
| Gross Profit | 8.78M | 7.67M | -823.04K | 18.11M | 9.29M | 10.18M |
| EBITDA | -21.85M | -16.85M | -31.66M | -14.95M | -77.37M | -69.99M |
| Net Income | -20.56M | -17.61M | -33.42M | -18.95M | -79.97M | -73.18M |
Balance Sheet | ||||||
| Total Assets | 133.58M | 78.26M | 89.27M | 115.73M | 152.40M | 189.51M |
| Cash, Cash Equivalents and Short-Term Investments | 127.91M | 74.52M | 85.19M | 109.93M | 143.76M | 174.39M |
| Total Debt | 6.09M | 6.26M | 18.49M | 22.31M | 27.97M | 7.49M |
| Total Liabilities | 27.57M | 42.91M | 38.74M | 45.17M | 69.31M | 32.95M |
| Stockholders Equity | 106.01M | 35.35M | 50.52M | 70.56M | 83.09M | 156.56M |
Cash Flow | ||||||
| Free Cash Flow | -19.47M | -15.67M | -29.73M | -28.54M | -49.30M | -45.92M |
| Operating Cash Flow | -19.30M | -15.66M | -29.70M | -28.45M | -48.61M | -43.41M |
| Investing Cash Flow | 735.21K | 476.80K | 1.11M | -77.36K | -686.05K | -2.51M |
| Financing Cash Flow | 84.08M | 4.45M | 3.77M | -5.37M | 17.82M | 145.36M |
Adagene Technical Analysis
Negative
3.90
Price Trends
3.16
Negative
3.47
Negative
3.41
Negative
Market Momentum
-0.22
Negative
42.28
Neutral
64.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAG, the sentiment is Negative. The current price of 3.9 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 3.16, and above the 200-day MA of 3.41, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADAG.
Adagene Risk Analysis
Adagene disclosed 120 risk factors in its most recent earnings report. Adagene 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
Adagene Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $54.58M | -1.08 | 214.97% | ― | -31.12% | -35.10% | |
45 Neutral | $45.97M | -0.78 | -38.99% | ― | ― | 31.98% | |
42 Neutral | $232.10M | -2.88 | -58.00% | ― | ― | ― | |
40 Underperform | $167.19M | -5.28 | -29.09% | ― | 8906.15% | 41.48% | |
33 Underperform | $11.22M | -1.79 | -64.46% | ― | ― | 33.15% |
* Healthcare Sector Average
ADAG
Adagene
2.49
0.65
34.96%
IFRX
InflaRx
1.58
-0.08
-5.12%
CLNN
Clene
3.84
-4.67
-54.88%
IMA
ImageneBio
4.05
-4.30
-51.50%
ANEB
Anebulo Pharmaceuticals
0.28
-2.43
-89.81%
Adagene Corporate Events
Adagene Announces Finance Executive Resignation Effective September 30, 2026
Sep 25, 2026
On September 30, 2026, Adagene Inc. announced that Ms. Chunfang (Vicky) Gu resigned from her role as Executive Director of Finance for personal reasons. The resignation was formally reported in a Form 6-K filed with the U.S. Securities and Exchang...
Adagene Wins NMPA IND Clearance for Novel HER2xCD3 T-Cell Engager ADG138
Sep 22, 2026
Adagene Inc., a platform-driven, clinical-stage biotechnology company listed on Nasdaq, specializes in antibody-based cancer immunotherapies built on its SAFEbody precision masking technology. Leveraging computational biology and artificial intell...
Adagene Deepens Third Arc Bio Partnership as First SAFEbody-Based CD3 Lead Selected
Sep 10, 2026
Adagene Inc., a clinical-stage biotech specializing in antibody-based cancer immunotherapies, has built a differentiated pipeline around its Dynamic Precision Library platform, including NEObody, SAFEbody and POWERbody technologies. Its lead progr...
Adagene Secures Milestone Payments in Exelixis SAFEbody ADC Collaboration
Sep 9, 2026
On September 9, 2026, Adagene Inc. reported achieving a preclinical milestone in its collaboration and license agreement with Exelixis Inc. The milestone, tied to the XB404 program built on Adagene’s SAFEbody masking technology to target ROR...
Adagene Extends Cash Runway and Advances Muzastotug Through Mid-2026 Clinical Milestones
Aug 12, 2026
On August 12, 2026, Adagene reported financial results for the six months ended June 30, 2026 and detailed significant progress in the clinical development of its lead asset, muzastotug. The company closed an equity offering in April 2026, lifting...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.