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D.Western Therapeutics Institute (4576) AI Stock Analysis

JP:4576

D.Western Therapeutics Institute

(TSE/TYO:4576)

Select Model
Rating:43Neutral
Price Target:JPY 57.00â–¼(-3.39% Downside)
Action:reiterated
Date:09/16/26

The score is held down primarily by sustained losses and ongoing negative free cash flow (cash burn), despite improving loss trends and strong gross margins. Technicals also weigh on the score as the stock trades well below major moving averages with very weak momentum. Valuation provides limited support because the company is unprofitable and no dividend yield is available.

Positive Factors
Strong Gross MarginsVery strong gross margins indicate that the company’s underlying drug-related activities can retain substantial value after direct costs. If revenue stabilizes and operating expenses become better aligned with scale, this gross-profit profile could support meaningful earnings improvement over the next several quarters.
Negative Factors
Persistent Cash BurnPersistent negative operating and free cash flow means the business does not currently fund its activities internally. Continued cash burn can require additional financing or capital support, potentially limiting strategic flexibility and increasing the importance of successful development progress.

D.Western Therapeutics Institute (4576) vs. iShares MSCI Japan ETF (EWJ)

-50%-40%-30%-20%-10%0%10%20%30%JP:4576-43.81%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 3.40B
Dividend Yield
―
Average Volume (3M)
298.71K
Price to Earnings (P/E)
-5.0
Beta (1Y)
-0.18
Revenue Growth
-41.25%
EPS Growth
55.11%
Country
Japan
Employees
19
Sector
Healthcare
Sector Strength
51
Industry
Biotechnology

D.Western Therapeutics Institute Business Overview & Revenue Model

Company Description

D. Western Therapeutics Institute, Inc. is a biotechnology enterprise focused on the research, discovery, and innovation of various pharmaceutical drugs. The company's current portfolio includes GLANATEC and GLA-ALPHA, ophthalmic solutions prescribed...

D.Western Therapeutics Institute Financial Statement Overview

Summary

Financials remain weak overall: profitability is deeply negative with net losses still exceeding revenue, and cash flow is consistently negative (ongoing cash burn). Positives include very strong gross margins and meaningfully narrowing losses in 2025, plus improved leverage (debt-to-equity ~0.42) supporting a somewhat healthier balance sheet.

Income Statement

32Negative

Balance Sheet

58Neutral

Cash Flow

27Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue305.74M387.62M471.58M428.36M448.10M414.42M
Gross Profit251.40M301.24M424.74M391.70M420.53M394.32M
EBITDA-611.09M-572.35M-1.23B-775.59M-390.75M-110.03M
Net Income-651.85M-632.09M-1.29B-812.41M-429.69M-149.00M
Balance Sheet
Total Assets1.97B2.17B1.67B2.37B2.96B2.46B
Cash, Cash Equivalents and Short-Term Investments1.54B1.71B1.13B1.87B2.33B1.93B
Total Debt594.17M605.18M797.98M885.12M967.69M340.00M
Total Liabilities654.26M734.01M935.57M1.09B1.08B427.72M
Stockholders Equity1.31B1.44B733.87M1.28B1.86B2.01B
Cash Flow
Free Cash Flow0-496.54M-1.31B-601.76M-364.58M-179.21M
Operating Cash Flow0-493.79M-1.30B-586.82M-354.77M-176.31M
Investing Cash Flow0-2.45M-10.01M-15.25M-139.89M-111.15M
Financing Cash Flow01.08B567.63M134.47M867.30M-104.46M

D.Western Therapeutics Institute Technical Analysis

Technical Analysis SentimentNegative
Last Price59.00

Price Trends

50DMA76.06Negative
100DMA75.98Negative
200DMA85.10Negative

Market Momentum

MACD-4.07Positive
RSI23.71Positive
STOCH11.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4576, the sentiment is Negative. The current price of 59.00 is below the 20-day moving average (MA) of 67.00, below the 50-day MA of 76.06, and below the 200-day MA of 85.10, indicating a bearish trend. The MACD of -4.07 indicates Positive momentum. The RSI at 23.71 is Positive, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4576.

D.Western Therapeutics Institute Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

JP:4576 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
JP:4593JP:459348NeutralJPY 37.00B55.04――-47.32%―
JP:4592JP:459243NeutralJPY 71.58B-19.22-37.79%――5.71%
JP:4576JP:457643NeutralJPY 3.40B-4.96-45.41%―-41.25%55.11%
JP:4978JP:497842NeutralJPY 13.03B-26.58――-18.71%-246.54%
JP:4599JP:459938UnderperformJPY 8.71B-4.68―――4.85%
JP:7776JP:777626UnderperformJPY 7.43B-6.49――-56.16%3.12%

* Healthcare Sector Average

Performance Comparison

-50%-25%0%25%JP:4576JP:4592JP:4593JP:4599JP:4978JP:7776Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4576 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4576D.Western Therapeutics Institute, Inc.59.00-47.00-44.34%
JP:4592SanBio Co 917.00-1913.00-67.60%
JP:4593Healios KK273.00-221.00-44.74%
JP:4599StemRIM Inc.139.00-134.00-49.08%
JP:4978ReproCELL Inc.122.00-51.00-29.48%
JP:7776CellSeed Inc.188.00-249.00-56.98%

D.Western Therapeutics Institute Corporate Events

D. Western Therapeutics Outlines Q2 FY12/26 Results and Outlook

Aug 13, 2026

D. Western Therapeutics Institute has released briefing materials for its second quarter results for the fiscal year ending December 2026. The documents outline financial performance, progress in business activities, and an updated forecast for the f...

D.Western Therapeutics Posts Deeper Losses, Keeps 2026 Outlook Unchanged

Aug 13, 2026

D.Western Therapeutics Institute reported consolidated net sales of ¥33 million for the first half of 2026, an 80.9% year-on-year decline, with an operating loss of ¥312 million and a net loss attributable to owners of the parent of ¥3...

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: Sep 16, 2026