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Alterity Therapeutics Ltd. (AU:ATH)
:ATH
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Alterity Therapeutics (ATH) AI Stock Analysis

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AU:ATH

Alterity Therapeutics

(OTC:ATH)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
Alterity Therapeutics faces significant challenges with profitability and cash flow, despite strong revenue growth and a solid equity position. The technical indicators suggest bearish momentum, and the negative P/E ratio highlights ongoing financial struggles. These factors contribute to a low overall stock score.

Alterity Therapeutics (ATH) vs. iShares MSCI Australia ETF (EWA)

Alterity Therapeutics Business Overview & Revenue Model

Company DescriptionAlterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer's disease, Huntington disease, Parkinson's disease, and other neurological disorders in Australia. The company's lead drug candidate is ATH434 that has completed Phase I clinical trial for the treatment of Parkinson's disease. It is also developing PBT2 that has completed Phase 2a clinical trial to treat Alzheimer's disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyAlterity Therapeutics generates revenue primarily through a combination of research and development funding, collaborations, and potential licensing agreements. The company may receive milestone payments and royalties from partnerships with larger pharmaceutical firms that are interested in its drug candidates. Additionally, Alterity may benefit from government grants or subsidies aimed at fostering innovation in biotech, particularly for therapies targeting serious medical conditions. The company's revenue model is heavily reliant on successful clinical trial outcomes, regulatory approvals, and the eventual commercialization of its therapeutic products.

Alterity Therapeutics Financial Statement Overview

Summary
Alterity Therapeutics is experiencing robust revenue growth, but profitability and cash flow remain significant concerns. The company has a strong equity position with minimal debt, which provides some financial stability. However, the negative margins and cash flow issues highlight the need for improved operational efficiency and cost management to achieve sustainable profitability.
Income Statement
35
Negative
Alterity Therapeutics shows a significant revenue growth rate of 46.03% in the latest year, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins (-2.23%) and EBIT margins (-2.70%). The consistent negative margins highlight ongoing operational challenges and high costs relative to revenue.
Balance Sheet
45
Neutral
The company maintains a very low debt-to-equity ratio of 0.0037, suggesting minimal leverage and financial risk. However, the return on equity is negative (-28.65%), reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively healthy, indicating a strong equity base compared to total assets.
Cash Flow
30
Negative
Alterity Therapeutics faces challenges with cash flow, as indicated by negative operating cash flow and free cash flow. The free cash flow growth rate is negative (-30.47%), and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting net income into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.44M5.44M4.02M3.92M5.12M4.34M
Gross Profit5.31M5.31M3.80M3.63M4.76M3.98M
EBITDA-14.63M-14.63M-22.95M-17.51M-17.39M-19.36M
Net Income-12.15M-12.15M-19.12M-13.81M-12.85M-15.31M
Balance Sheet
Total Assets46.03M46.03M19.22M27.32M41.36M33.59M
Cash, Cash Equivalents and Short-Term Investments40.66M40.66M12.64M15.77M34.81M28.12M
Total Debt155.46K155.46K159.04K210.38K117.49K65.65K
Total Liabilities3.62M3.62M5.43M4.50M5.89M3.12M
Stockholders Equity42.40M42.40M13.80M22.81M35.47M30.47M
Cash Flow
Free Cash Flow-10.71M-11.45M-12.61M-20.04M-12.43M-17.34M
Operating Cash Flow-10.71M-11.45M-12.61M-20.04M-12.34M-17.33M
Investing Cash Flow-7.50M-7.50M-5.72K-36.46K-89.15K-10.47K
Financing Cash Flow25.54M39.67M9.22M124.34K16.30M36.69M

Alterity Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$150.95M21.9527.24%1.77%0.65%-9.90%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
AU$122.90M0.66%
$107.98M-83.09%55.94%
AU$108.75M-42.68%63.46%
$182.12M-81.03%-20.79%73.98%
AU$107.88M-13.24-47.98%700.00%26.88%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ATH
Alterity Therapeutics
0.01
0.00
0.00%
AU:IMU
Imugene
0.37
-1.13
-75.60%
AU:PAR
Paradigm Biopharmaceuticals
0.43
0.21
93.18%
AU:EZZ
EZZ Life Science Holdings Ltd.
2.25
-0.87
-27.88%
AU:RCE
Recce Pharmaceuticals Ltd.
0.42
-0.02
-4.55%
AU:ALA
Arovella Therapeutics Limited
0.09
-0.09
-50.00%

Alterity Therapeutics Corporate Events

Alterity Therapeutics Advances MSA Treatment with Promising ATH434 Trial Results
Oct 31, 2025

Alterity Therapeutics has reported promising results from its ATH434 trials, indicating a strengthened efficacy signal at high doses and a potential market opportunity of USD $2.4 billion in MSA treatment. The company is actively engaging with the FDA to advance ATH434 to Phase 3 trials, with a cash balance of A$54.56M as of September 2025, underscoring its commitment to developing a first-in-class therapy for MSA.

Alterity Therapeutics Announces 2025 Annual General Meeting
Oct 21, 2025

Alterity Therapeutics Limited has announced its Annual General Meeting scheduled for November 21, 2025, at Deloitte Australia’s offices in Melbourne. The company emphasizes the importance of shareholders submitting proxy forms and questions in advance to facilitate a well-prepared meeting. This announcement highlights Alterity’s commitment to transparent communication with its stakeholders and adherence to new provisions under the Corporations Act.

Alterity Therapeutics to Present Promising Phase 2 Trial Results for MSA Treatment at 2025 Congress
Oct 1, 2025

Alterity Therapeutics announced that data from its ATH434-201 Phase 2 clinical trial will be presented at the 2025 International Congress of Parkinson’s Disease and Movement Disorders. The trial results showed that ATH434 significantly improved clinical outcomes in MSA patients, demonstrating robust efficacy and safety, and has been granted Fast Track and Orphan Drug Designations by the FDA and European Commission. This development positions Alterity as a key player in the neurodegenerative disease treatment market, potentially offering the first-ever treatment for MSA.

Alterity Therapeutics Projects $2.4 Billion Sales for MSA Drug ATH434
Sep 29, 2025

Alterity Therapeutics has released a new commercial assessment for its lead drug candidate ATH434, aimed at treating Multiple System Atrophy (MSA), estimating potential global peak sales at USD $2.4 billion. The assessment, based on positive Phase 2 trial results, indicates strong interest from neurologists, with over 70% likely to prescribe ATH434 due to its efficacy in slowing disease progression and stabilizing symptoms, positioning Alterity favorably in the neurodegenerative treatment market.

Alterity Therapeutics Announces Director’s Interest Change
Sep 17, 2025

Alterity Therapeutics has announced a change in the director’s interest notice, specifically regarding Brian Meltzer’s holdings. The notice reveals that there was a disposal of 7,000,000 unlisted options expiring on September 17, 2025, at $0.09, with no consideration involved. This change in holdings may impact the company’s stock dynamics and reflects ongoing adjustments in its governance and financial strategies.

Alterity Therapeutics Announces Cessation of 35 Million Securities
Sep 17, 2025

Alterity Therapeutics Limited announced the cessation of 35 million securities due to the expiry of options without exercise or conversion as of September 17, 2025. This cessation may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategy and future growth prospects.

Alterity Therapeutics’ ATH434 Shows Promise in Phase 2 MSA Trial
Sep 15, 2025

Alterity Therapeutics presented data from their Phase 2 clinical trial of ATH434 at the American Neurological Association Annual Meeting, showing the drug’s efficacy in slowing disease progression in Multiple System Atrophy (MSA) and its favorable safety profile. The trial demonstrated significant improvements in disease severity and motor performance, reinforcing ATH434’s potential as a disease-modifying therapy and generating optimism in the medical community.

Alterity Therapeutics Issues Over 1.6 Billion New Shares
Sep 15, 2025

Alterity Therapeutics has announced the issuance of over 1.6 billion fully paid ordinary shares, as per the regulations of the Corporations Act. This move is part of the company’s strategy to raise capital without the need for disclosure under Part 6D.2 of the Corporations Act, indicating compliance with necessary legal provisions and transparency requirements, which may impact its financial positioning and stakeholder confidence.

Alterity Therapeutics Announces Quotation of New Securities on ASX
Sep 15, 2025

Alterity Therapeutics Limited announced the quotation of 1,666,666,663 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 15, 2025. This move is part of a previously announced transaction, potentially enhancing the company’s financial flexibility and market presence, which could have implications for its strategic initiatives and stakeholder interests.

Alterity Therapeutics Announces Major Securities Issue
Sep 8, 2025

Alterity Therapeutics Limited announced a proposed issue of 1,666,666,663 ordinary fully paid securities, with the issue date set for September 15, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s financial standing and market position by increasing its capital base, which may support ongoing research and development efforts.

Alterity Therapeutics Secures A$20 Million to Advance Neurodegenerative Disease Treatment
Sep 8, 2025

Alterity Therapeutics has successfully raised A$20.0 million through a strategic placement of shares to international and Australian investors, strengthening its financial position. This funding will support the continued development of ATH434, a treatment for Multiple System Atrophy, and enhance the company’s clinical and regulatory strategies, positioning it for potential strategic partnerships.

Alterity Therapeutics Files Annual Report with SEC
Sep 2, 2025

Alterity Therapeutics announced the filing of its Annual Report on Form 20-F with the SEC, including audited financial statements for the year ending June 30, 2025. This filing, along with the XBRL interactive data, is available on their website, reflecting the company’s commitment to transparency and regulatory compliance, which could bolster stakeholder confidence and enhance its industry positioning.

Alterity Therapeutics to Present Corporate Update at Biotech Showcase
Sep 1, 2025

Alterity Therapeutics announced that its CEO, David Stamler, will present a corporate update at the Biotech Showcase. This presentation highlights the company’s progress, particularly the positive data from its ATH434 trials for Multiple System Atrophy, potentially strengthening its position in the neurodegenerative disease treatment market.

Alterity Therapeutics Releases 2025 Corporate Governance Statement
Aug 29, 2025

Alterity Therapeutics Limited has released its Corporate Governance Statement for the financial year ending 2025, detailing its adherence to the ASX Corporate Governance Council’s principles. The company has implemented a comprehensive Corporate Governance Plan, including a Board Charter that defines the roles and responsibilities of its board members and management. This announcement underscores Alterity’s commitment to transparency and accountability, potentially strengthening its position in the industry and enhancing stakeholder confidence.

Alterity Therapeutics Releases Corporate Governance Statement for FY2025
Aug 29, 2025

Alterity Therapeutics Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles, demonstrating its commitment to transparency and accountability in management and oversight. This release is significant for stakeholders as it reflects Alterity’s dedication to maintaining high governance standards, which can enhance investor confidence and potentially impact its market positioning positively.

Alterity Therapeutics Reports Revenue Growth Amid Financial Loss
Aug 29, 2025

Alterity Therapeutics reported a 66.3% increase in revenue for the year ending June 30, 2025, reaching A$446,291, primarily from interest received. Despite a net loss of A$12,147,828, the company improved its financial position with a significant cash increase to A$33,158,642. This financial performance highlights Alterity’s ongoing commitment to its core activities without significant changes, although no dividends were declared for the year.

Alterity Therapeutics Announces Quotation of New Securities on ASX
Aug 22, 2025

Alterity Therapeutics Limited has announced the quotation of 1,283,942 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of August 22, 2025. This move reflects the company’s ongoing efforts to strengthen its financial position and enhance its market presence, potentially impacting its operational capabilities and offering new opportunities for investors.

Alterity Therapeutics Issues New Unlisted Options as Part of Employee Incentive Scheme
Aug 15, 2025

Alterity Therapeutics Limited announced the issuance of 312,400,200 unlisted options set to expire on August 8, 2030, with an exercise price of US$0.0086. This move, part of an employee incentive scheme, reflects the company’s strategic efforts to align employee interests with long-term growth and stability, potentially enhancing its market position and stakeholder value.

Alterity Therapeutics Issues New Unlisted Options as Part of Employee Incentive Scheme
Aug 15, 2025

Alterity Therapeutics Limited has announced the issuance of 11,500,000 unlisted options, set to expire on August 8, 2030, with an exercise price of $0.013. This issuance, part of an employee incentive scheme, reflects the company’s efforts to align employee interests with long-term strategic goals, potentially enhancing its competitive positioning in the biotechnology sector.

Alterity Therapeutics Publishes Key Neuroimaging Measure for MSA
Aug 4, 2025

Alterity Therapeutics recently announced the publication of a significant neuroimaging measure from its bioMUSE Natural History Study in the Annals of Clinical and Translational Neurology. This measure, known as the MSA Atrophy Index, serves as an imaging marker for diagnosing and tracking the progression of Multiple System Atrophy. The announcement was marked as market-sensitive, as it coincided with a slight increase in the company’s stock price, reflecting its potential impact on Alterity’s market positioning and stakeholder interests.

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.Date of analysis: Nov 01, 2025