Avecho Biotechnology Limited (AVE) AI Stock Analysis

• Market Cap: AU$14.28M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 306.88%
• EPS Growth: N/A
• Country: AU
• Employees: 29
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.00
• Shares Outstanding: 3,173,463,600
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ―

Avecho Biotechnology Limited's overall stock performance is challenged by significant profitability and cash flow issues, despite a solid equity base and revenue growth. The lack of technical analysis data and negative valuation metrics further complicate the investment outlook. The company's reliance on external financing heightens financial risk, requiring improvements in operational efficiency and cash flow management.

Avecho Biotechnology Limited Business Overview & Revenue Model

Company Description

Avecho Biotechnology Limited, a biotechnology company, develops, produces, and sells products using its patented platform technology, Targeted Penetration Matrix (TPM) drug delivery system for the pharmaceutical, skin care, animal health, and nutrition industries. It offers TPM and Vital ET products for use in drug delivery and cosmetic formulations; and develops TPM/Oxymorphone and TPM/Oxycodone. The company's human health portfolio covers delivery of pharmaceutical products through gels, injectables, and patches. It also provides non-antibiotic feed additive products to enhance feed efficiency and the health of livestock animals. The company has a collaboration with Lambert Initiative at the University of Sydney to conduct a study to examine whether topically applied cannabidiol can provide relief from symptoms of osteoarthritis. It serves customers in Australia, Switzerland, India, and internationally. The company was formerly known as Phosphagenics Limited and changed its name to Avecho Biotechnology Limited in May 2019. Avecho Biotechnology Limited was incorporated in 1992 and is based in Clayton, Australia.

How the Company Makes Money

Avecho Biotechnology Limited generates revenue primarily through the development and licensing of its proprietary TPM technology to pharmaceutical and healthcare companies. The company earns income by entering into licensing agreements with partners who seek to incorporate TPM into their own products to enhance drug delivery and efficacy. Additionally, Avecho may receive milestone payments and royalties based on the commercial success of products developed using its technology. Strategic collaborations and partnerships with industry players are significant contributors to Avecho's earnings, as these alliances help the company to expand its reach and application of its technology across different markets.

Avecho Biotechnology Limited Financial Statement Overview

Summary

Avecho Biotechnology Limited faces significant profitability and cash flow challenges, despite revenue growth. The company's financial stability is supported by a solid equity base and manageable debt levels. However, negative profitability metrics and reliance on external financing for liquidity remain key concerns. Improvement in operational efficiency and sustainable cash flow generation are critical for future financial health.

Income Statement

Avecho Biotechnology Limited has shown a challenging financial position in terms of profitability. The gross profit margin for 2024 was 59.29%, a significant improvement from the negative margin in 2023. However, the company has consistently reported negative net profit margins, indicating ongoing net losses. Revenue grew by 139.16% in 2024 compared to 2023, but EBIT and EBITDA margins remain negative, raising concerns about operational efficiency.

Balance Sheet

The balance sheet reflects mixed signals with a debt-to-equity ratio of 0.33 in 2024, showing moderate leverage. The equity ratio stands at 65.44%, indicating a strong equity base relative to total assets. Return on equity remains negative due to persistent net losses, highlighting profitability challenges despite a stable financial structure.

Cash Flow

Cash flow analysis reveals that operating cash flow has been negative, suggesting potential liquidity issues. The free cash flow to net income ratio is negative, further emphasizing cash constraints. Financing activities provided a cash influx, but reliance on external financing could pose long-term risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13M	473.55K	1.13M	793.60K	384.63K
Gross Profit	671.93K	-43.80K	793.12K	507.94K	240.91K
EBITDA	-2.92M	-3.24M	-2.11M	-2.98M	-2.28M
Net Income	-3.12M	-3.44M	-2.34M	-3.42M	-2.63M
Balance Sheet
Total Assets	5.00M	7.32M	3.35M	5.25M	3.35M
Cash, Cash Equivalents and Short-Term Investments	2.37M	5.50M	1.47M	3.26M	1.87M
Total Debt	1.08M	175.15K	246.07K	93.91K	166.23K
Total Liabilities	1.73M	941.54K	920.66K	709.36K	700.17K
Stockholders Equity	3.27M	6.38M	2.42M	4.54M	2.65M
Cash Flow
Free Cash Flow	-3.97M	-3.18M	-1.72M	-3.30M	-1.43M
Operating Cash Flow	-3.97M	-3.18M	-1.67M	-3.10M	-1.42M
Investing Cash Flow	―	0.00	-53.12K	-202.82K	-5.15K
Financing Cash Flow	854.59K	7.22M	-78.22K	4.69M	-82.50K

Avecho Biotechnology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSB	54 Neutral	59.86M	-14.29	0.00%	―	0.00%	-672.73%
BOT	53 Neutral	254.97M	-2.78	0.00%	―	456.50%	-457.14%
PYC	51 Neutral	522.02M	-8.93	0.00%	―	0.00%	-5.70%
AVE	46 Neutral	AU$14.28M	―	-143.71%	―	306.88%	―
IMU	39 Underperform	90.23M	-0.96	0.00%	―	0.00%	55.94%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Avecho Biotechnology Limited Corporate Events

Avecho Biotechnology Limited Announces 2025 Annual General Meeting

Avecho Biotechnology Limited has announced its Annual General Meeting (AGM) scheduled for May 27, 2025, at the Grant Thornton Offices in Melbourne. The company encourages shareholders to participate in the meeting either in person or by proxy, with electronic communication options available for accessing meeting materials. This AGM announcement is part of Avecho’s ongoing efforts to engage with stakeholders and comply with regulatory requirements, potentially impacting investor relations and corporate governance practices.

Avecho Biotechnology Announces Quotation of New Securities

Avecho Biotechnology Limited has announced the quotation of 4,166,666 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of April 15, 2025. This move is part of an employee incentive scheme, indicating the company’s strategy to motivate and retain talent. The issuance of these securities is expected to enhance Avecho’s market presence and potentially improve stakeholder confidence in its operational strategies.

Avecho Biotechnology Issues Shares Under Equity Incentive Plan

Avecho Biotechnology Limited has issued 4,166,666 fully paid ordinary shares to employees under its Equity Incentive Plan at a deemed issue price of $0.006 per share. This issuance was conducted without disclosure to investors under Part 6D.2 of the Corporations Act, and the company confirms compliance with relevant provisions of the Corporations Act, indicating transparency and adherence to regulatory standards.

Avecho Secures $3M Deal with Sandoz for CBD Insomnia Capsule in Australia

Avecho Biotechnology Limited has received a US$3 million upfront payment from Sandoz AG for the exclusive rights to commercialize its CBD capsule for insomnia in Australia. This agreement, which includes potential milestone and royalty payments, positions Avecho to expand its market presence while retaining commercialization rights in other territories. The CBD capsule is set to be the first over-the-counter pharmaceutical CBD product registered with the Therapeutic Goods Administration in Australia, with market forecasts predicting significant sales potential. The partnership with Sandoz strengthens Avecho’s financial position, enabling the company to accelerate its Phase III clinical trial and advance towards regulatory approval, thereby enhancing its industry positioning and stakeholder value.

Avecho Biotechnology to Present at NWR Virtual Healthcare Conference Amid Major Licensing Deal

Avecho Biotechnology Limited announced its participation in the NWR Virtual Healthcare Conference, where it will discuss its recent licensing agreement with Sandoz AG for the Australian commercial rights to its CBD product. This agreement is pivotal for Avecho’s ongoing Phase III clinical trial of its CBD TPM soft-gel capsule, aimed at treating insomnia. The trial’s success could position Avecho as a leader in the Australian over-the-counter CBD market, especially given the regulatory changes allowing such sales without a prescription. The trial is designed to meet international regulatory standards and could significantly impact the company’s market presence if successful.

Avecho Biotechnology Hosts Investor Webinar Amidst Key Licensing Agreement and Clinical Trial Progress

Avecho Biotechnology Limited has announced an investor webinar following its licensing agreement with Sandoz Group AG. The company is conducting a pivotal Phase III trial of its CBD TPM soft-gel capsules aimed at reducing insomnia severity, with the trial being the largest of its kind in Australia. This development is significant as it positions Avecho to potentially be the first to market with an over-the-counter CBD product for insomnia in Australia, tapping into a growing market projected to exceed US$125 million annually.

Avecho Biotechnology Requests Trading Halt Ahead of Key Announcement

Avecho Biotechnology Limited has requested a trading halt on its securities pending an announcement concerning an exclusive license and development agreement. This move is intended to manage the company’s continuous disclosure obligations and is expected to impact its market operations once the announcement is made.

Avecho Biotechnology Sees Revenue Surge Amidst Continued R&D Investments

Avecho Biotechnology Limited reported a significant increase in revenue by 139.2% to $1,132,672 for the year ending December 31, 2024, primarily driven by increased sales of Vital ET®. Despite the revenue growth, the company recorded a loss of $3,122,048, which is a 9.2% improvement from the previous year. The increase in expenses, especially in research and development, is attributed to the Phase III Clinical Trial for its oral cannabidiol capsule. The company’s cash reserves decreased significantly due to ongoing investments, impacting its net assets and working capital.

Avecho Biotechnology Addresses ASX Price Query Amid Milestone Speculation

Avecho Biotechnology Limited has responded to a price query from the ASX, clarifying that the recent increase in the trading volume and price of its securities may be due to market speculation. This speculation surrounds the company’s potential achievement of a significant milestone, being the first to report positive Phase III clinical trial results for a CBD product targeting insomnia, which could lead to new partnerships and licensing opportunities globally.