Molecular Partners (MOLN) AI Stock Analysis

• Market Cap: $143.90M
• Dividend Yield: N/A
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -91.15%
• EPS Growth: -5.82%
• Country: US
• Employees: 158
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.68
• Shares Outstanding: 40,374,640
• 10 Day Avg. Volume: 2,028
• 30 Day Avg. Volume: 3,931
• 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: <0.01
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: -0.02
• 1Y Price Target: $8.33
• Price Target Upside: 126.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $3.50 ▼(-4.63% Downside)

Molecular Partners' overall stock score is primarily impacted by its challenging financial performance, with declining revenue and negative profitability margins. While the earnings call provided some positive developments in their pipeline and collaborations, the technical analysis and valuation metrics remain neutral to negative, reflecting the company's current financial struggles.

Positive Factors

Strategic Collaborations

The expansion of the Orano Med collaboration enhances Molecular Partners' radio DARPin franchise, providing a robust pipeline for future development and commercialization.

Financial Position

A strong cash position ensures Molecular Partners can sustain operations and invest in R&D, supporting long-term growth and stability.

Pipeline Progress

Advancements in the radio DARPin program indicate potential for new therapeutic options, enhancing the company's competitive edge in biotechnology.

Negative Factors

Revenue Decline

The conclusion of the Novartis collaboration and declining revenue highlight challenges in maintaining consistent income streams, impacting financial sustainability.

Profitability Challenges

Ongoing net losses and negative profit margins suggest difficulties in achieving operational efficiency, which could hinder long-term profitability.

Cash Flow Concerns

Negative free cash flow raises concerns about the company's ability to fund operations and growth initiatives without external financing.

Molecular Partners Business Overview & Revenue Model

Company Description

Molecular Partners AG operates as a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutic proteins. Its products candidates include Abicipar, a DARPin therapeutic candidate, which is in Phase III clinical trials for the treatment of neovascular wet age-related macular degeneration, as well as for diabetic macular edema; and MP0420, a multi-specific DARPin therapeutic candidate for the SARS-CoV-2 virus. The company develops MP0310, which is in Phase Ia clinical trials for immuno-oncology; MP0317, a tumor-localized immune agonist that activates immune cells in the tumor, which is in Phase I clinical trials; and MP0274 that is in Phase I clinical trials for HER2-positive cancers. It also develops MP0423 for treating COVID-19; MP0533, a CD3 T cell candidate for acute myeloid leukemia; and MP0250 for vascular endothelial growth factor, hepatocyte growth factor, and human serum albumin to increase half-life. Molecular Partners AG has agreements and collaboration with Novartis AG to develop, manufacture, and commercialize DARPin-conjugated radioligand therapies; Amgen SA; Allergan, Inc.; and discovery alliance with AbbVie Inc. in ophthalmology, as well as other third-party collaborators. The company was incorporated in 2004 and is headquartered in Schlieren, Switzerland.

How the Company Makes Money

Molecular Partners primarily generates revenue through strategic collaborations and partnerships with larger pharmaceutical companies. These collaborations often include upfront payments, milestone payments, and royalties based on the successful development and commercialization of DARPin-based therapies. Additionally, the company may engage in licensing agreements for its proprietary technology, allowing partners to leverage the DARPin platform for their own therapeutic development. This business model enables Molecular Partners to gain financial support for its research and development activities, while also benefiting from the commercial success of its partnered programs. Furthermore, the company may receive funding from grants and other non-dilutive sources to support specific research initiatives.

Molecular Partners Financial Statement Overview

Summary

Molecular Partners faces significant financial challenges, with declining revenue, negative profitability margins, and consistent net losses. While the balance sheet shows strong equity financing and low leverage, the company's cash flow and profitability issues raise concerns about its ability to sustain operations without external funding.

Income Statement

The company has experienced a decline in revenue over the past year, with a negative revenue growth rate of approximately -29.37% from 2023 to 2024. Gross profit margin is high at 100% in 2024 due to low total revenue, but net profit margin is negative due to substantial net losses, indicating challenges in controlling operational costs. EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.02 in 2024, suggesting low leverage and financial risk. However, the equity ratio is high at 89.34%, indicating strong equity financing. Return on equity is negative due to net losses, which is a concern for profitability. Overall, the company has a solid equity base but struggles with profitability.

Cash Flow

The company reports negative free cash flow, which has slightly increased from the previous year's negative free cash flow. The operating cash flow to net income ratio is close to 1, indicating that cash flow performance aligns with net income losses. However, negative free cash flow is a concern for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	681.00K	4.97M	7.04M	189.56M	9.33M	9.34M
Gross Profit	681.00K	4.97M	-40.81M	138.81M	-46.39M	-46.73M
EBITDA	-62.51M	-51.65M	-59.52M	117.50M	-60.66M	-59.58M
Net Income	-64.81M	-54.04M	-61.98M	117.85M	-63.78M	-62.76M
Balance Sheet
Total Assets	124.25M	158.53M	198.35M	262.26M	172.67M	187.55M
Cash, Cash Equivalents and Short-Term Investments	114.49M	149.44M	186.89M	249.14M	132.81M	173.72M
Total Debt	1.84M	2.44M	3.65M	4.85M	6.04M	7.22M
Total Liabilities	17.59M	16.89M	21.92M	27.09M	65.38M	80.33M
Stockholders Equity	106.66M	141.64M	176.43M	235.17M	107.29M	107.22M
Cash Flow
Free Cash Flow	-57.60M	-59.97M	-59.81M	117.15M	-92.26M	-30.67M
Operating Cash Flow	-56.66M	-59.25M	-59.01M	118.57M	-90.95M	-28.98M
Investing Cash Flow	59.66M	40.49M	44.64M	-101.12M	-22.24M	-21.75M
Financing Cash Flow	14.46M	14.43M	-1.17M	-1.57M	50.58M	113.20M

Molecular Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.67
• 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 MOLN, the sentiment is Negative. The current price of 3.67 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 3.70, and below the 200-day MA of 4.26, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MOLN.

Molecular Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPHA	51 Neutral	172.04M	-3.06	-560.01%	―	-75.77%	-31.24%
MOLN	49 Neutral	$143.90M	―	-48.90%	―	-91.15%	-5.82%
SGMO	47 Neutral	166.24M	-1.94	-430.13%	―	565.52%	79.44%
DSGN	47 Neutral	361.62M	-5.68	0.00%	―	0.00%	-24.60%
ANNX	38 Underperform	327.46M	-2.31	0.00%	―	0.00%	-5.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Molecular Partners Corporate Events

Molecular Partners Advances Clinical Programs and Strengthens Financial Position in H1 2025

Molecular Partners AG announced significant progress in its clinical programs and financial stability for the first half of 2025. The company is advancing its lead program MP0712 towards a first-in-human trial, with an IND filing expected by the end of 2025, and has presented promising data for its MP0533 program in treating acute myeloid leukemia. The expansion of its strategic partnership with Orano Med and the appointment of Martin Steegmaier as CSO further strengthen its operational capabilities. Financially, the company remains robust with funding secured into 2028, highlighting its strong market positioning and commitment to delivering value to stakeholders.