Alar Pharmaceuticals Inc (6785) AI Stock Analysis

Alar Pharmaceuticals Inc

(TPEx:6785)

Select Model

Rating:41Neutral

Price Target:TWD 70.00▼(-12.61% Downside)

Action:initiatedcoverage

Date:11/09/26

Alar Pharmaceuticals scores low primarily because of weak financial performance: the business has no recurring revenue, posted negative gross profit and an operating loss of about NT$168m, and is burning cash at roughly NT$118m of negative free cash flow annually. The main offset is a fortress balance sheet — close to NT$2.4bn of equity with virtually no debt — which provides meaningful runway and limits near-term solvency risk. Technicals compound the caution, with the price well below all key moving averages and negative MACD momentum amid a sustained downtrend. Valuation adds little support given negative earnings and a negligible dividend yield, leaving the investment case dependent on pipeline progress and future licensing deals. Earnings call and corporate event components were excluded for lack of data, with their weight redistributed across the remaining factors.

Positive Factors

Low Financial LeverageVery low leverage provides financial flexibility and reduces refinancing pressure over the next several quarters. A substantial equity and asset base relative to debt can help the company absorb operating volatility and preserve strategic options while it works to restore profitability.

Negative Factors

Severe Revenue ContractionThe dramatic two-year revenue contraction signals a major loss of operating scale and materially weakens the foundation for future earnings. Persistently lower revenue reduces cost absorption, limits reinvestment capacity, and makes a durable recovery dependent on rebuilding demand or commercial activity.

Alar Pharmaceuticals Inc (6785) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.35B
Dividend Yield: 0.12%
Average Volume (3M): 58.18K
Price to Earnings (P/E): -73.5
Beta (1Y): 0.60
Revenue Growth: -57.57%
EPS Growth: -312.45%
Country: TW
Employees: 32
Sector: General
Sector Strength: 55
Industry: Medical - Pharmaceuticals

Alar Pharmaceuticals Inc Business Overview & Revenue Model

Company Description

Alar Pharmaceuticals Inc., a drug development company, focuses on developing long-acting release drug products for CNS disorders and chronic diseases in Taiwan. The company develops ALA-1000 for the treatment of opioid use disorder. Its pre-clinical...

Alar Pharmaceuticals Inc Financial Statement Overview

Summary

A classic clinical-stage biotech profile: a very strong, essentially debt-free balance sheet (around NT$2.4bn of equity, debt-to-equity near zero) offset by weak earnings and cash generation. Revenue collapsed from the NT$469m milestone-driven 2023 windfall to just NT$2.8m in the latest year, producing negative gross profit, an operating loss of roughly NT$168m and a net loss near NT$80m. Operating cash flow worsened to about -NT$116m with free cash flow near -NT$118m, meaning losses are real cash burn. Solvency risk is low in the near term, but there is no recurring commercial revenue, return on equity is negative, and future deals or further equity issuance (and dilution) may be needed.

Income Statement

27Negative

Balance Sheet

82Very Positive

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.00M	2.75M	5.82M	469.27M	800.00K	0
Gross Profit	-1.96M	-2.73M	3.79M	469.27M	800.00K	0
EBITDA	-103.65M	-74.02M	49.50M	394.52M	-29.31M	-60.85M
Net Income	-72.13M	-79.68M	18.17M	382.62M	-19.87M	-64.23M
Balance Sheet
Total Assets	2.45B	2.49B	2.56B	973.21M	522.60M	539.91M
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.30B	2.43B	895.99M	486.22M	519.07M
Total Debt	1.85M	3.57M	604.00K	1.41M	2.69M	949.00K
Total Liabilities	72.34M	84.34M	64.26M	76.09M	8.10M	5.54M
Stockholders Equity	2.38B	2.40B	2.49B	897.12M	514.50M	534.37M
Cash Flow
Free Cash Flow	-157.88M	-118.39M	-38.90M	397.23M	-34.09M	-65.05M
Operating Cash Flow	-154.91M	-115.53M	-37.67M	403.57M	-32.95M	-63.47M
Investing Cash Flow	468.95M	552.45M	-870.35M	-118.18M	-29.84M	22.51M
Financing Cash Flow	-20.11M	-19.09M	1.57B	-1.28M	-929.00K	-932.00K

Alar Pharmaceuticals Inc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6785 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4166	70Outperform	TWD 5.47B	22.78	―	―	―	―
TW:4746	64Neutral	TWD 5.43B	11.42	―	6.61%	-2.71%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4157	52Neutral	TWD 5.78B	37.38	―	―	530.40%	―
TW:3176	42Neutral	TWD 4.62B	-16.65	―	―	1.11%	-94.39%
TW:6785	41Neutral	TWD 5.11B	-73.49	―	0.12%	-57.57%	-312.45%

* General Sector Average

Performance Comparison

TW:6785 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6785	Alar Pharmaceuticals Inc	80.10	-174.64	-68.56%
TW:3176	Medigen Biotechnology Corporation	30.10	0.20	0.67%
TW:4157	TaiGen Biopharmaceuticals Holdings Limited	8.29	-1.23	-12.92%
TW:4166	Orient Pharma Co., Ltd.	22.55	-2.05	-8.33%
TW:4746	Formosa Laboratories, Inc.	45.40	-15.89	-25.92%
TW:7902	Uwell Biopharma Inc.	25.45	-2.15	-7.79%

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: Nov 09, 2026

Alar Pharmaceuticals Inc AI Stock Analysis