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Avenue Therapeutics Inc (ATXI)
OTHER OTC:ATXI

Avenue Therapeutics (ATXI) AI Stock Analysis

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Avenue Therapeutics

(OTC:ATXI)

24Underperform
Avenue Therapeutics exhibits significant financial and operational challenges, notably with no revenue and ongoing losses, leading to a low financial performance score. The technical indicators point to a bearish trend with potential oversold conditions, but this does not offset the fundamental weaknesses. The valuation is constrained by negative earnings and lack of dividend yield. Overall, the stock holds substantial risks, reflected in its low score.
Positive Factors
Analyst Recommendation
Analyst maintains a Buy rating on the AJ201 opportunity.
Clinical Milestones
The company is on track to get to its key milestone, the P2a data for AJ201 in Spinal Bulbar Muscular Atrophy, which is expected in the coming months.
Regulatory Pathway
Positive data indicative of potential clinical improvement should pave the way to meet with the FDA to determine next steps.
Negative Factors
Capital Requirements
The company is going to need to raise capital soon, either before or after the data, given the short runway.
Financial Performance
Avenue reported 2Q24 results with a net loss of ($2.7M) and ended the period with $4.9M in cash on the balance sheet.
Financing Needs
A P2a is planned, but additional financing is needed for which Avenue is exploring its options, including potential partnerships.

Avenue Therapeutics (ATXI) vs. S&P 500 (SPY)

Avenue Therapeutics Business Overview & Revenue Model

Company DescriptionAvenue Therapeutics, Inc., a specialty pharmaceutical company, develops and commercializes products primarily for use in the acute/intensive care hospital setting. Its product candidate is intravenous Tramadol, a synthetic dual-acting opioid, which is in Phase III clinical trials for the treatment of post-operative acute pain. The company was incorporated in 2015 and is based in New York, New York.
How the Company Makes MoneyAvenue Therapeutics generates revenue primarily through the development and commercialization of its pharmaceutical products. The company's key revenue stream is expected to come from the sales of its flagship product, IV tramadol, once it gains regulatory approval and enters the market. Revenue generation is contingent upon successful clinical trials, obtaining necessary regulatory approvals, and effective marketing and distribution strategies. Additionally, Avenue Therapeutics may engage in partnerships and collaborations with other pharmaceutical companies to enhance the commercialization and distribution of its products, which can contribute to its earnings.

Avenue Therapeutics Financial Statement Overview

Summary
Avenue Therapeutics is facing significant financial challenges with no revenue generation and ongoing losses. While the balance sheet shows no debt, the continuous cash burn and lack of profitability pose substantial risks to sustainability.
Income Statement
5
Very Negative
Avenue Therapeutics has not generated any revenue over the reporting periods, leading to negative EBIT and net income. The lack of revenue growth and persistent losses indicate significant challenges in achieving profitability.
Balance Sheet
35
Negative
The balance sheet shows a relatively low level of liabilities with no debt, resulting in a strong equity position. However, the company’s assets are largely composed of cash, and the consistent operating losses are eroding equity.
Cash Flow
10
Very Negative
Operating cash flows have been consistently negative, reflecting the company’s ongoing cash burn without revenue generation. Free cash flow remains negative, although financing activities have temporarily boosted cash reserves.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
0.000.000.000.000.000.00
EBIT
-9.48M-11.28M-14.54M-8.04M-3.74M-5.21M
EBITDA
-8.65M-11.28M4.05M0.000.00-5.21M
Net Income Common Stockholders
-13.66M-11.65M-10.38M2.05M-3.72M-5.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.78M2.59M1.78M6.71M3.76M3.13M
Total Assets
1.85M2.67M1.85M6.84M3.96M3.25M
Total Debt
0.000.000.000.000.000.00
Net Debt
-1.78M-2.59M-1.78M-6.71M-3.76M-3.13M
Total Liabilities
1.20M816.00K1.20M3.58M509.00K886.00K
Stockholders Equity
1.58M2.80M1.58M3.90M3.45M2.36M
Cash FlowFree Cash Flow
-7.09M-9.03M-12.45M-7.60M-3.75M-5.61M
Operating Cash Flow
-7.09M-9.03M-9.45M-7.60M-3.75M-4.61M
Investing Cash Flow
0.000.00-3.00M0.000.00-1.00M
Financing Cash Flow
7.40M9.84M7.53M10.54M4.38M0.00

Avenue Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.22
Price Trends
50DMA
0.33
Negative
100DMA
0.92
Negative
200DMA
1.60
Negative
Market Momentum
MACD
-0.04
Negative
RSI
39.80
Neutral
STOCH
58.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATXI, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.33, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATXI.

Avenue Therapeutics Risk Analysis

Avenue Therapeutics disclosed 57 risk factors in its most recent earnings report. Avenue Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Avenue Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.19B3.04-44.64%2.82%16.45%-0.53%
45
Neutral
$855.80K-89.21%-83.72%99.56%
37
Underperform
$4.93M-1718.32%42.66%-98.89%
30
Underperform
$1.73M-300.16%79.57%
28
Underperform
$2.89M-120.01%97.84%
24
Underperform
$700.71K-430.44%87.42%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATXI
Avenue Therapeutics
0.22
-3.58
-94.21%
BDRX
Biodexa Pharmaceuticals
1.29
-56.96
-97.79%
SLRX
Salarius Pharmaceuticals
0.82
-2.95
-78.25%
HEPA
Hepion Pharmaceuticals
0.10
-58.40
-99.83%
WINT
Windtree Therapeutics
0.79
-211.71
-99.63%
ICCT
iCoreConnect
2.38
-17.72
-88.16%

Avenue Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Avenue Therapeutics Ends License Agreement with AnnJi
Neutral
Apr 30, 2025

On April 24, 2025, Avenue Therapeutics and AnnJi Pharmaceutical terminated their license agreement concerning the AJ201 molecule, following AnnJi’s notice of intent to terminate. Under the new agreement, Avenue transferred all rights to AJ201 back to AnnJi and agreed not to compete with AJ201 in certain regions for 48 months. Financial arrangements include mutual payments and potential future royalties and milestone payments to Avenue, indicating a strategic shift in Avenue’s operations and potential financial implications.

Spark’s Take on ATXI Stock

According to Spark, TipRanks’ AI Analyst, ATXI is a Underperform.

Avenue Therapeutics exhibits significant financial and operational challenges, notably with no revenue and ongoing losses, leading to a low financial performance score. The technical indicators point to a bearish trend with potential oversold conditions, but this does not offset the fundamental weaknesses. The valuation is constrained by negative earnings and lack of dividend yield. Overall, the stock holds substantial risks, reflected in its low score.

To see Spark’s full report on ATXI stock, click here.

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.