Ocumension Therapeutics (1477) AI Stock Analysis

• Market Cap: HK$6.87B
• Dividend Yield: N/A
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 74.73%
• EPS Growth: 32.13%
• Country: HK
• Employees: 489
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.19
• Shares Outstanding: 836,331,900
• 10 Day Avg. Volume: 1,456,522
• 30 Day Avg. Volume: 3,406,832
• PEG Ratio: 0.32
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 6.97
• P/FCF Ratio: -7.11
• 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: HK$10.51
• Price Target Upside: 25.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: HK$8.00 ▼(-4.19% Downside)

Ocumension Therapeutics faces significant profitability and cash flow challenges despite strong revenue growth. The technical analysis suggests mixed momentum, and the valuation indicates potential overvaluation. These factors contribute to a cautious outlook.

Ocumension Therapeutics Business Overview & Revenue Model

Company Description

Ocumension Therapeutics, together with its subsidiaries, operates as an ophthalmic pharmaceutical platform company in the People's Republic of China. The company discovers, develops, and commercializes therapies for ophthalmic patients. It offers drugs for the treatment of blepharitis, infective and allergic conjunctivitis, dry eye, cataract, glaucoma and ocular hypertension, postoperative inflammation, uveitis, retinitis pigmentosa, age-related macular degeneration, cornea graft rejection, myopia, and optic neuritis. As of December 31, 2021, the company had 20 drug assets in its portfolio. Ocumension Therapeutics was founded in 2017 and is headquartered in Suzhou, the People's Republic of China.

How the Company Makes Money

Ocumension Therapeutics generates revenue through a multi-faceted business model that includes the development and sale of its proprietary drug products, licensing agreements, and partnerships with other pharmaceutical companies. The company's key revenue streams consist of product sales from its marketed therapies, milestone payments from collaborative agreements, and royalties from licensed products. Significant partnerships with larger pharmaceutical firms enhance its research capabilities and market reach, contributing to its earnings. Additionally, Ocumension may engage in clinical trial collaborations and government grants aimed at advancing its product pipeline, further diversifying its income sources.

Ocumension Therapeutics Financial Statement Overview

Summary

Ocumension Therapeutics shows strong revenue growth but struggles with profitability, reflected in negative EBIT and net income. The balance sheet is strong with low leverage, but cash flow challenges persist, indicating potential liquidity issues.

Income Statement

Ocumension Therapeutics showcases strong revenue growth, with a notable increase in total revenue from the previous year (+69.4%). However, the company continues to operate at a loss with negative EBIT and net income, impacting its net profit margin (-64.3%) and EBIT margin (-73.4%). Gross profit margin remains healthy at 53.9%, indicating operational efficiency in production.

Balance Sheet

The company's balance sheet is strong with high equity levels, as evidenced by a low debt-to-equity ratio (0.01) and a high equity ratio (94.96%). However, the return on equity is negative (-7.11%) due to sustained net losses. The low leverage and high cash reserves suggest financial stability, but profitability remains a concern.

Cash Flow

The cash flow position is challenging, with zero operating cash flow and free cash flow, indicating potential liquidity issues. The absence of cash flow from operations despite revenue growth highlights operational cash constraints. Previous periods show negative free cash flow, suggesting ongoing cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	543.72M	417.31M	246.37M	158.96M	56.15M	13.10M
Gross Profit	231.51M	225.06M	144.37M	102.92M	36.94M	11.37M
EBITDA	-198.88M	-229.36M	-320.62M	-359.98M	-376.31M	-2.26B
Net Income	-249.25M	-268.27M	-379.79M	-402.64M	-259.99M	-2.26B
Balance Sheet
Total Assets	3.90B	3.97B	3.27B	3.04B	3.33B	2.60B
Cash, Cash Equivalents and Short-Term Investments	578.27M	769.21M	1.05B	1.29B	1.77B	2.03B
Total Debt	83.22M	25.78M	137.98M	29.58M	11.21M	7.24M
Total Liabilities	243.82M	200.19M	351.03M	295.04M	222.88M	97.23M
Stockholders Equity	3.65B	3.77B	2.92B	2.75B	3.11B	2.50B
Cash Flow
Free Cash Flow	-195.07M	-408.97M	-539.79M	-510.66M	-861.66M	-517.18M
Operating Cash Flow	-160.92M	-178.83M	-177.93M	-200.66M	-196.85M	-212.57M
Investing Cash Flow	-174.67M	275.91M	-259.78M	229.15M	-1.35B	629.70M
Financing Cash Flow	-69.99M	-213.79M	108.66M	-9.22M	668.85M	1.53B

Ocumension Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1477, the sentiment is Positive. The current price of 8.35 is above the 20-day moving average (MA) of 8.13, below the 50-day MA of 8.93, and above the 200-day MA of 7.29, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1477.

Ocumension Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0775	―	HK$8.46B	-30.34	-7.26%	―	2.10%	-1350.00%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1477	―	HK$6.87B	-23.42	-7.71%	―	74.73%	32.13%
2616	―	HK$9.18B	-20.28	-95.84%	―	-55.64%	-158.67%
6622	―	HK$1.71B	―	-14.84%	―	-38.38%	-22.12%
2157	―	HK$11.52B	-55.06	-21.42%	―	240.05%	-140.09%

Ocumension Therapeutics Corporate Events

Ocumension Therapeutics Reports Strong Revenue Growth Amid Product Expansion

Ocumension Therapeutics announced a 75.4% increase in revenue for the first half of 2025, reaching RMB294.0 million, driven by the growth of key ophthalmic products and successful integration of products from Alcon. Despite the revenue growth, the company reported an adjusted net loss of RMB108.0 million due to increased costs. The approval of new products, including ZERVIATE and OT-703, and the commencement of a phase III clinical trial for OT-802, highlight the company’s ongoing efforts to expand its product portfolio and strengthen its market position in China.

The most recent analyst rating on (HK:1477) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Ocumension Therapeutics stock, see the HK:1477 Stock Forecast page.

Ocumension’s OT-301 Achieves Key Milestone in Phase III Trial

Ocumension Therapeutics announced that its key drug candidate, OT-301 (NCX 470), has achieved the primary endpoint of non-inferiority compared to latanoprost in its second phase III clinical trial, known as the Denali trial. This success marks a significant step towards new drug approval in China, demonstrating OT-301’s favorable safety profile and superior intraocular pressure reduction. The trial involved 696 patients across the United States and China, further solidifying Ocumension’s position in the ophthalmic drug market and potentially impacting stakeholders positively by expanding its product offerings in the region.

The most recent analyst rating on (HK:1477) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Ocumension Therapeutics stock, see the HK:1477 Stock Forecast page.

Ocumension Therapeutics to Review Interim Results in Upcoming Board Meeting

Ocumension Therapeutics has announced a board meeting scheduled for August 21, 2025, to review and approve the company’s interim results for the first half of the year and discuss the potential recommendation of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial health and strategic decisions moving forward.

The most recent analyst rating on (HK:1477) stock is a Hold with a HK$9.78 price target. To see the full list of analyst forecasts on Ocumension Therapeutics stock, see the HK:1477 Stock Forecast page.