Avenue Therapeutics (ATXI) AI Stock Analysis

• Market Cap: $793.73K
• Dividend Yield: N/A
• Average Volume (3M): 18.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: N/A
• EPS Growth: 87.42%
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -16.80
• Shares Outstanding: 3,149,702
• 10 Day Avg. Volume: 7,912
• 30 Day Avg. Volume: 18,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.86
• 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: Moderate Buy
• Number of Analyst Covering: 0

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 Business Overview & Revenue Model

Company Description

Avenue Therapeutics (ATXI) is a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of central nervous system diseases. The company's core product includes intravenous (IV) tramadol, which is designed to treat moderate to moderately severe postoperative pain. Avenue Therapeutics operates within the healthcare sector, with a focus on pain management solutions.

How the Company Makes Money

Avenue 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 faces significant financial challenges with zero revenue and consistent net losses. While the zero-debt position offers some stability, the absence of revenue growth and reliance on external financing indicate potential risks. Overall, the company must address revenue generation and operational efficiency to improve its financial health.

Income Statement

Avenue Therapeutics has consistently reported zero revenue, highlighting a critical challenge in its business model. The TTM EBIT margin is negative due to significant operating losses, and net income remains negative, indicating ongoing financial difficulties. The absence of revenue growth and negative profitability metrics reflect potential sustainability issues.

Balance Sheet

The balance sheet shows a moderate level of stability with zero debt, which is a strength. However, given the negative net income, the return on equity (ROE) remains negative. The equity ratio indicates a relatively high percentage of equity in the asset base, which is positive, but the low asset base limits financial flexibility.

Cash Flow

Cash flow analysis reveals negative free cash flow, though there is a positive trend in free cash flow growth. The operating cash flow to net income ratio is not favorable due to negative earnings. While financing activities have been a source of cash, the reliance on external funding underscores financial vulnerability.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00
	EBIT
-14.54M	-8.04M	-3.74M	-5.21M	-26.27M
	EBITDA
4.05M	0.00	0.00	-5.21M	0.00
	Net Income Common Stockholders
-10.38M	2.05M	-3.72M	-5.09M	-25.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.78M	6.71M	3.76M	3.13M	8.74M
	Total Assets
1.85M	6.84M	3.96M	3.25M	8.91M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.78M	-6.71M	-3.76M	-3.13M	-8.74M
	Total Liabilities
1.20M	3.58M	509.00K	886.00K	2.12M
	Stockholders Equity
1.58M	3.90M	3.45M	2.36M	6.80M
Cash Flow		Free Cash Flow
-12.45M	-7.60M	-3.75M	-5.61M	-26.26M
	Operating Cash Flow
-9.45M	-7.60M	-3.75M	-4.61M	-26.26M
	Investing Cash Flow
-3.00M	0.00	0.00	-1.00M	0.00
	Financing Cash Flow
7.53M	10.54M	4.38M	0.00	32.33M

Avenue Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 0.25 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.57, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 24.44 is Positive, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATXI.

Avenue Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
BDRX	45 Neutral	$936.03K	―	-89.21%	―	-83.72%	99.56%
ICCT	37 Underperform	$4.21M	―	-1718.32%	―	42.66%	-98.89%
SLRX	30 Underperform	$1.47M	―	-164.02%	―	―	79.57%
WINT	28 Underperform	$931.00K	―	-21.57%	―	―	97.84%
ATXI	24 Underperform	$793.73K	―	-737.43%	―	―	87.42%

Avenue Therapeutics Corporate Events

Avenue Therapeutics Ends License Agreement with AnnJi

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.