Connect Biopharma Holdings (CNTB) AI Stock Analysis

• Market Cap: $42.62M
• Dividend Yield: N/A
• Average Volume (3M): 184.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 62
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 55,349,210
• 10 Day Avg. Volume: 72,395
• 30 Day Avg. Volume: 184,829
• PEG Ratio: -0.03
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.49
• 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: $7.00
• Price Target Upside: 858.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Connect Biopharma Holdings' overall score reflects the challenges of unprofitability and negative cash flow despite recent revenue growth and a strong balance sheet. Technical indicators suggest a bearish trend, while the valuation highlights the risks typical of early-stage biotech firms. However, the positive corporate event regarding FDA support for Phase 2 trials offers a promising growth opportunity in the pipeline, improving the outlook.

Positive Factors

Market opportunity

CNTB's recent shift in strategy towards targeting asthma and COPD patients within the emergency department / hospital settings represents an attractive opportunity.

Regulatory progress

CNTB announced positive feedback from its Type C meeting with the FDA and is on track to initiate parallel Phase 2 proof-of-concept trials for lead asset rademikibart.

Negative Factors

Clinical trial risks

Risks include safety signals emerge with any of the company’s clinical or preclinical programs, efficacy from clinical programs is lower than expected, or the company’s studies do not achieve statistical significance.

Financial requirements

Financing requirements for the business assume cash runway into 2027 and approximately $150M additional financing needed through 2038.

Connect Biopharma Holdings Business Overview & Revenue Model

Company Description

Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, focuses on the discovery and development of immune modulators for the treatment of serious autoimmune diseases and inflammation. The company's lead product candidate is CBP-201, an anti-interleukin-4 receptor alpha antibody, which is in Phase IIb clinical trial for the treatment of inflammatory allergic diseases, such as atopic dermatitis, asthma, and chronic rhinosinusitis with nasal polyps. Its products also comprise CBP-307, a small molecule modulator of sphingosine 1-phosphate receptor 1, a regulator of T cell mobilization out of lymph nodes into the periphery that is in Phase II for the treatment of autoimmune-related inflammation diseases; CBP-174, a small molecule histamine receptor 3 antagonist for oral administration, which is in a preclinical stage to treat chronic itch associated with skin inflammation; and CBP-233, a preclinical stage humanized antibody against interleukin-33, a cytokine involved in T helper 2 inflammation. The company was founded in 2012 and is headquartered in Taicang, China.

How the Company Makes Money

Connect Biopharma Holdings makes money through the development and commercialization of its proprietary drugs targeted at T cell-driven inflammatory diseases. The company's revenue model primarily involves out-licensing its drug candidates to larger pharmaceutical companies, which may provide upfront payments, milestone payments, and royalties on future sales. Additionally, Connect Biopharma may engage in strategic collaborations with other biopharmaceutical companies to co-develop and co-market its products, thereby sharing the risks and rewards of drug development. However, as a clinical-stage company, significant revenue generation depends on successfully navigating the regulatory approval process and bringing its therapies to market.

Connect Biopharma Holdings Financial Statement Overview

Summary

Connect Biopharma Holdings faces significant financial challenges, with zero revenue, persistent losses, and negative cash flow indicating a precarious financial position. Despite low debt levels, negative equity suggests solvency issues.

Income Statement

Connect Biopharma Holdings has consistently reported zero revenue over the years, indicating a lack of commercialized products or services. The company exhibits negative EBIT and net income, reflecting ongoing operational losses. The absence of revenue growth and persistent losses suggest financial instability in the income statement.

Balance Sheet

The balance sheet shows a relatively low debt level, leading to a low debt-to-equity ratio, which is positive. However, the company has a history of negative stockholders' equity, indicating potential solvency issues. The equity ratio is also weak, suggesting reliance on liabilities for asset financing.

Cash Flow

The cash flow statements reveal a negative free cash flow, pointing to cash burn without sufficient inflows. The operating cash flow is consistently negative, showing that core operations are not generating cash, raising concerns about sustainability without external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
24.12M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
23.63M	-988.00K	-1.03M	0.00	0.00	0.00
	EBIT
-19.92M	-62.07M	-117.66M	-99.15M	-30.30M	-15.99M
	EBITDA
-20.18M	-58.37M	-111.31M	-204.93M	-118.21M	-24.78M
	Net Income Common Stockholders
-21.27M	-59.50M	-116.42M	-205.21M	-120.30M	-24.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.27M	118.65M	164.65M	268.02M	156.74M	49.27M
	Total Assets
54.05M	125.89M	177.01M	291.39M	166.19M	54.05M
	Total Debt
127.96K	465.00K	437.88K	124.52K	139.86K	127.96K
	Net Debt
-44.70M	-105.54M	-79.93M	-267.90M	-154.59M	-44.70M
	Total Liabilities
97.33M	24.85M	16.81M	18.82M	323.20M	97.33M
	Stockholders Equity
-43.27M	101.04M	-463.76M	272.57M	-157.01M	-43.27M
Cash Flow		Free Cash Flow
-25.26M	-48.22M	-103.55M	-93.03M	-27.95M	-13.25M
	Operating Cash Flow
-24.82M	-47.93M	-99.27M	-85.57M	-25.61M	-13.09M
	Investing Cash Flow
53.18M	75.16M	-83.44M	―	449.15K	―
	Financing Cash Flow
-161.72K	-246.00K	―	206.66M	140.74M	―

Connect Biopharma Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTB, the sentiment is Negative. The current price of 0.73 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.75, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTB.

Connect Biopharma Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.04B	3.15	-44.58%	2.85%	16.08%	-0.27%
CNTB	49 Neutral	$42.62M	―	-58.89%	―	―	―
DYAI	46 Neutral	$31.29M	―	-214.26%	―	20.58%	15.90%
XFOR	44 Neutral	$18.76M	1.35	121.75%	―	―	―
PEPG	40 Underperform	$45.15M	―	-75.45%	―	―	14.06%
RVPH	28 Underperform	$36.92M	―	-916.17%	―	―	45.15%

Connect Biopharma Holdings Corporate Events

Connect Biopharma Gains FDA Support for Phase 2 Trials

On April 1, 2025, Connect Biopharma announced positive feedback from its Type C meeting with the FDA, which has aligned on the company’s plan to initiate parallel Phase 2 trials of rademikibart for patients with moderate-to-severe asthma or COPD experiencing acute exacerbations. These trials, set to begin in the second quarter of 2025, aim to enroll approximately 160 patients each and will evaluate the efficacy of a single 600 mg subcutaneous dose of rademikibart over 28 days. The company expects to report data from these trials in the first half of 2026, potentially impacting the treatment landscape for asthma and COPD by addressing a significant unmet need.