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Gain Therapeutics, Inc. (GANX)
:GANX
US Market

Gain Therapeutics (GANX) AI Stock Analysis

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Gain Therapeutics

(NASDAQ:GANX)

Rating:46Neutral
Price Target:
Gain Therapeutics is currently challenged by significant financial difficulties, with no revenue growth and persistent losses impacting profitability. These weaknesses heavily weigh down the stock score. Despite these challenges, technical analysis shows mixed signals, and recent positive corporate events related to Parkinson’s treatment offer some hope for future prospects. However, the negative valuation metrics further underscore the risks, leading to an overall cautious outlook.
Positive Factors
Clinical Trial Progress
The Phase 1b trial of GT-02287 is on track for full enrollment, which indicates progress in the clinical study timeline.
Financial Stability
Gain Therapeutics reported financial results with sufficient cash to fund operations into late 2025.
Preclinical Data
GT-02287 has shown the ability to restore GCase function, reduce toxic lipid substrates and alpha-synuclein, improve neuron survival and dopamine levels, and enhance locomotor function in preclinical models of Parkinson's disease.
Negative Factors
Financial Performance
Gain reported 4Q24 and full-year results with a net loss of ($3.3M) and ($20.4M), respectively, ending the period with $10.4M in cash on the balance sheet.
Risks and Challenges
Risks for Gain Therapeutics include delays in advancing preclinical candidates, unexpected safety issues, and negative trial results.
Trial Outcomes
Interim and full data from the Phase 1b trial are expected to provide valuable insights for further study designs and could act as a catalyst for the stock.

Gain Therapeutics (GANX) vs. SPDR S&P 500 ETF (SPY)

Gain Therapeutics Business Overview & Revenue Model

Company DescriptionGain Therapeutics, Inc., a biotechnology company, engages in developing various therapies to treat diseases caused by protein misfolding. It focuses on rare genetic diseases and neurological disorders. The company uses its Site-Directed Enzyme Enhancement Therapy platform to discover allosteric sites on misfolded proteins and identify proprietary small molecules that bind these sites, restore protein folding, and treat disease. It is developing structurally targeted allosteric regulator candidates to treat various diseases, including Morquio B, GM1 gangliosidosis (GM1), neuronopathic Gaucher disease, GBA1 Parkinson's, Krabbe, and Mucopolysaccharidosis type 1 diseases. The company was founded in 2017 and is based in Bethesda, Maryland.
How the Company Makes MoneyGain Therapeutics primarily makes money through partnerships, collaborations, and licensing agreements with larger pharmaceutical and biotechnology companies. These partnerships usually involve upfront payments, milestone payments based on the achievement of development or regulatory milestones, and royalties on future sales of products developed using Gain's technology. Additionally, the company may receive research grants and funding for specific projects aimed at discovering therapies for rare diseases.

Gain Therapeutics Financial Statement Overview

Summary
Gain Therapeutics is facing significant financial challenges. The lack of revenue growth and persistent losses hinder profitability. While the company maintains low leverage, declining equity and asset levels raise concerns about financial stability. The negative cash flow highlights liquidity issues, impacting the company's operational sustainability.
Income Statement
20
Very Negative
Gain Therapeutics has faced declining revenues over the years, with 2024 showing no revenue. The company has persistent negative net income and EBIT, indicating profitability challenges. Gross profit margins are negative when revenue is present, showing inefficiencies in operations.
Balance Sheet
30
Negative
The company maintains a relatively low level of debt with a debt-to-equity ratio of 0.03 for 2024, which is a positive aspect. However, the declining stockholders' equity and total assets indicate potential risks in financial stability. The equity ratio decreased significantly over the years, suggesting increased reliance on liabilities.
Cash Flow
25
Negative
Gain Therapeutics struggles with negative operating cash flow, though there is improvement in free cash flow due to reduced capital expenditures. The operating cash flow to net income ratio is unfavorable, showing issues in converting profits into cash. Free cash flow remains negative, reflecting ongoing liquidity challenges.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.0055.18K140.11K164.99K28.88K
Gross Profit
0.00-25.20K75.94K-7.00M-2.23M
EBIT
-20.35M-22.25M-17.78M-13.83M-3.48M
EBITDA
-19.79M-22.17M-17.78M-13.82M-3.47M
Net Income Common Stockholders
-20.41M-22.27M-17.59M-13.89M-3.58M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.39M16.79M20.14M36.88M7.49M
Total Assets
12.12M18.61M24.10M38.99M9.60M
Total Debt
653.01K1.03M1.27M1.61M1.26M
Net Debt
-9.73M-10.77M-6.04M-35.27M-6.23M
Total Liabilities
4.78M6.03M5.22M4.17M3.40M
Stockholders Equity
7.34M12.58M18.88M34.82M6.20M
Cash FlowFree Cash Flow
-18.90M-18.88M-14.81M-12.46M-3.26M
Operating Cash Flow
-18.87M-18.87M-14.69M-12.37M-3.24M
Investing Cash Flow
4.98M10.22M-14.77M-94.21K-20.83K
Financing Cash Flow
13.01M12.64M-78.77K41.77M10.49M

Gain Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.77
Price Trends
50DMA
1.93
Negative
100DMA
2.07
Negative
200DMA
1.92
Negative
Market Momentum
MACD
-0.03
Positive
RSI
42.58
Neutral
STOCH
16.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GANX, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 1.93, and below the 200-day MA of 1.92, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 16.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GANX.

Gain Therapeutics Risk Analysis

Gain Therapeutics disclosed 63 risk factors in its most recent earnings report. Gain Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We are currently listed on The Nasdaq Global Market. If we are unable to maintain listing of our securities on The Nasdaq Global Market or any stock exchange, our stock price could be adversely affected and the liquidity of our stock and our ability to obtain financing could be impaired and it may be more difficult for our stockholders to sell their securities. Q3, 2024
2.
Our failure to maintain compliance with Nasdaq's continued listing requirements could result in the delisting of our common stock Q3, 2024

Gain Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$58.92M-1.01%28.29%87.42%
53
Neutral
$5.14B3.23-45.01%2.85%17.55%-0.69%
50
Neutral
$72.22M-119.22%25.51%
46
Neutral
$52.32M-290.21%-100.00%44.28%
46
Neutral
$41.91M-59.49%21.15%46.44%
43
Neutral
$77.70M-679.15%-56.88%-57.57%
CUCUE
41
Neutral
$49.96M-221.66%13.83%37.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GANX
Gain Therapeutics
1.77
-0.64
-26.56%
ICCC
Immucell
6.25
1.86
42.37%
PDSB
PDS Biotechnology
1.43
-1.68
-54.02%
CUE
Cue Biopharma
0.66
-0.96
-59.26%
STRO
Sutro Biopharma
0.94
-3.24
-77.51%
KRON
Kronos Bio
0.69
-0.06
-8.00%

Gain Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Gain Therapeutics Unveils New Parkinson’s Treatment Data
Positive
Apr 10, 2025

On April 10, 2025, Gain Therapeutics announced the presentation of new preclinical data and the design of a Phase 1b clinical study for GT-02287, a promising treatment for Parkinson’s disease. The data, presented at the AD/PD 2025 International Conference, highlighted GT-02287’s potential to modify disease progression by reducing key biomarkers of neurodegeneration and inflammation in preclinical models. The ongoing Phase 1b study aims to assess the safety and pharmacokinetics of GT-02287 in Parkinson’s patients, with results expected to inform a Phase 2 study in late 2025. This development underscores Gain Therapeutics’ strategic positioning in the biotech industry, potentially offering a novel therapeutic approach for Parkinson’s disease and enhancing its market presence.

Spark’s Take on GANX Stock

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

Gain Therapeutics is currently facing financial struggles, particularly in terms of revenue and cash flow, which significantly impact its stock score. Technical indicators suggest the stock is in a bearish phase, adding to the cautious outlook. However, recent corporate events, such as progress in clinical trials and leadership changes, provide some positive momentum and potential for future growth.

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

Product-Related AnnouncementsBusiness Operations and Strategy
Gain Therapeutics Advances GT-02287 in Parkinson’s Trials
Positive
Feb 6, 2025

On February 6, 2025, Gain Therapeutics announced the advancement of their clinical development for GT-02287, a promising therapy for Parkinson’s disease. Following a successful Phase 1 study, they have begun a Phase 1b trial in Australia, aiming to demonstrate its disease-modifying effects. The company plans to continue its research and potentially expand trials, leveraging positive feedback from the FDA and maintaining strong financial health to support operations.

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.