Dogwood Therapeutics (DWTX) AI Stock Analysis

• Market Cap: $10.01M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.69
• Revenue Growth: N/A
• EPS Growth: -57.84%
• Country: US
• Employees: 12
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -8.45
• Shares Outstanding: 1,911,128
• 10 Day Avg. Volume: 143,617
• 30 Day Avg. Volume: 1,684,494
• PEG Ratio: <0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.99
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.34
• 1Y Price Target: $20.00
• Price Target Upside: 277.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: ―

Dogwood Therapeutics' overall stock score reflects its financial challenges typical of early-stage biotech firms, with no revenue and significant reliance on external financing. However, the recent debt conversion strengthens the balance sheet and boosts investor confidence. Technical indicators suggest neutral momentum, with a speculative valuation.

Positive Factors

Financial Stability

Dogwood announced that its largest shareholder, CK Life Sciences, through its wholly-owned subsidiary, Conjoint Inc, exchanged the $19.5M loan agreement (+ interest) with Dogwood to preferred stock. This is a significant positive for Dogwood as it further demonstrates CKLS' commitment to the development of Halneuron (Nav1.7) for pain.

Market Opportunity

Analyst's recommendation is upgraded to Buy based on a positive outlook on the upcoming interim results and the market opportunity for Halneuron.

Regulatory Approval

The company has received FDA special protocol assessment approval to conduct a Phase 3 registration-directed study of Halneuron in the U.S., Canada, and E.U.

Negative Factors

Financial Performance

The company reported no revenues in the year and a net loss of $8.45 per share, compared to consensus estimated net loss of $3.70 per share.

Market Uncertainty

The continuation of the Long-COVID program may depend on the availability of federal funds as the commercial market for this indication is still not well defined.

Revenue Risk

Revenue risk adjustments of 60% (CINP) and 80% (LC) are factored in based on stage of development and clinical trial risk.

Dogwood Therapeutics Business Overview & Revenue Model

Company Description

Dogwood Therapeutics, Inc., a development-stage biotechnology company, focuses on developing novel antiviral therapies to treat diseases associated with a viral triggered abnormal immune response. The company's lead development candidate is the IMC-1, a fixed dose combination of famciclovir and celecoxib to treat fibromyalgia. It also develops IMC-2, a combination of valacyclovir and celecoxib for the treatment of managing the fatigue, sleep, attention, pain, autonomic function, and anxiety associated with long COVID. The company was formerly known as Virios Therapeutics, Inc. and changed its name to Dogwood Therapeutics, Inc. in October 2024. The company was founded in 2012 and is headquartered in Alpharetta, Georgia.

How the Company Makes Money

Dogwood Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in strategic partnerships with larger pharmaceutical firms to co-develop and market its therapies, often receiving upfront payments, milestone payments, and royalties on sales. Additionally, Dogwood Therapeutics may secure funding through research grants and collaborations with academic institutions, contributing to its R&D efforts. Licensing agreements for its proprietary technologies and intellectual property serve as another significant revenue stream, allowing the company to monetize its innovations while expanding its market reach.

Dogwood Therapeutics Financial Statement Overview

Summary

Dogwood Therapeutics exhibits typical characteristics of early-stage biotech firms with no revenue and significant losses. While it has a strong equity base and low leverage, the company's financial health is heavily reliant on external financing, posing a risk if revenue generation does not commence soon.

Income Statement

Dogwood Therapeutics has consistently reported no revenue over the years, which is typical for early-stage biotechnology firms. The company has significant net losses, indicating high R&D and operational costs with no offsetting income. The lack of revenue and consistent losses are concerning, but expected in this sector.

Balance Sheet

The company's balance sheet shows a strong equity base and low leverage, with a Debt-to-Equity Ratio of 0, indicating no debt burden. However, equity is primarily financed by cash injections, reflecting a reliance on external funding. This suggests a stable but potentially unsustainable financial structure without revenue generation.

Cash Flow

Dogwood Therapeutics has negative free cash flow, which reflects its cash burn typical in biotech. The Operating Cash Flow to Net Income Ratio indicates efficient cash management relative to reported losses. However, continued reliance on financing activities to sustain operations could pose long-term risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00
	EBIT
-12.23M	-5.45M	-12.32M	-15.64M	-10.01M
	EBITDA
-12.25M	-5.45M	-12.32M	-15.64M	-10.01M
	Net Income Common Stockholders
-12.35M	-5.30M	-12.25M	-15.96M	-10.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.85M	3.32M	7.03M	14.01M	29.80M
	Total Assets
94.31M	4.17M	8.37M	15.78M	31.47M
	Total Debt
15.59M	0.00	0.00	0.00	0.00
	Net Debt
737.71K	-3.32M	-7.03M	-14.01M	-29.80M
	Total Liabilities
30.03M	358.55K	1.04M	1.28M	1.53M
	Stockholders Equity
64.28M	3.81M	7.33M	14.50M	29.94M
Cash Flow		Free Cash Flow
-8.79M	-4.87M	-11.47M	-15.69M	-3.90M
	Operating Cash Flow
-8.79M	-4.87M	-11.47M	-15.69M	-3.90M
	Investing Cash Flow
3.76M	0.00	0.00	0.00	0.00
	Financing Cash Flow
16.70M	1.16M	4.49M	-97.60K	33.38M

Dogwood Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.30
• 50DMA: Positive
• 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 DWTX, the sentiment is Positive. The current price of 5.3 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 5.03, and above the 200-day MA of 4.89, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 58.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DWTX.

Dogwood Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
DWTX	49 Neutral	$10.01M	―	-451.34%	―	―	-57.84%
EVAX	46 Neutral	$2.62M	―	467.86%	―	4455.07%	77.31%
APRE	40 Underperform	$9.18M	―	-59.80%	―	157.63%	40.52%
CARM	27 Underperform	$7.70M	―	-362.79%	―	32.45%	39.31%
PMCB		$7.21M	1.38	45.44%	―	―	―
ACXP	39 Underperform	$9.39M	―	-285.79%	―	―	23.65%

Dogwood Therapeutics Corporate Events

Dogwood Therapeutics Strengthens Balance Sheet with Debt Conversion

On March 12, 2025, Dogwood Therapeutics entered into a Debt Exchange and Cancellation Agreement with Conjoint Inc., converting $19.5 million in debt into equity by issuing Series A-1 Non-Voting Convertible Preferred Stock. This strategic move, supported by the company’s largest shareholder CK Life Sciences Int’l., strengthens Dogwood’s balance sheet and underscores confidence in its lead product, Halneuron®, which is being developed as a non-opioid pain treatment. The agreement allows Dogwood to focus on its Phase 2b clinical trial for chemotherapy-induced neuropathic pain without the burden of debt, potentially enhancing its attractiveness to investors.