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Aligos Therapeutics (ALGS)
NASDAQ:ALGS

Aligos Therapeutics (ALGS) AI Stock Analysis

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Aligos Therapeutics

(NASDAQ:ALGS)

37Underperform
Aligos Therapeutics is experiencing severe financial instability, with zero revenue and persistent losses. The negative equity and weak technical indicators further weigh on the stock. However, recent corporate events, including significant private placement funding and leadership changes, provide a glimmer of hope for future improvement.
Positive Factors
Clinical Trial Milestone
The initiation of ALG-000184's randomized, double-blind, active-controlled Phase 2 study is regarded as Aligos' next major milestone.
Efficacy and Safety
ALG-000184 showcased robust and sustained antiviral activity in both HBeAg-positive and HBeAg-negative patients with CHB, highlighting its potential as a first-line therapy for long-term viral suppression.
Regulatory Progress
ALG-000184 now has a clear regulatory pathway as a potential chronic suppressive therapy for HBV supported by both the FDA and the Center for Drug Evaluation (CDE) in China.
Negative Factors
Investment Risks
Risks to the investment thesis include negative data readouts, failure to secure regulatory approval, and potential delays in development timelines.
Regulatory Challenges
Management plans to complete prerequisite activities by mid-2025 for ALG-055009's advancement into a Phase 2b study, with ongoing discussions with potential partners for its funding.

Aligos Therapeutics (ALGS) vs. S&P 500 (SPY)

Aligos Therapeutics Business Overview & Revenue Model

Company DescriptionAligos Therapeutics, Inc. (ALGS) is a clinical-stage biopharmaceutical company focused on developing novel therapeutics to address unmet medical needs in viral and liver diseases. The company's core offerings include the development of drug candidates for the treatment of chronic hepatitis B (CHB) and nonalcoholic steatohepatitis (NASH). Aligos leverages its expertise in medicinal chemistry and virology to create small molecule and oligonucleotide-based drug candidates. It operates within the biotechnology and pharmaceutical sectors, advancing therapeutic solutions through clinical trials and partnerships.
How the Company Makes MoneyAligos Therapeutics generates revenue primarily through strategic partnerships, collaborations, and potential future sales of its drug candidates. The company may enter into licensing agreements with larger pharmaceutical companies, providing upfront payments, milestone payments, and royalties on sales. Aligos focuses on advancing its proprietary drug candidates through clinical trials, aiming to bring them to market for commercialization. As a clinical-stage company, it currently relies on funding from investors and partnerships to support its research and development activities. Successful development and approval of its drug candidates would eventually lead to revenue generation from product sales.

Aligos Therapeutics Financial Statement Overview

Summary
Aligos Therapeutics is experiencing severe financial difficulties characterized by zero revenue in 2024 and persistent losses. The negative equity position and ongoing cash flow challenges suggest significant financial instability. Strategic adjustments are necessary to improve financial health and address the ongoing operational and financial challenges.
Income Statement
30
Negative
Aligos Therapeutics has faced consistent challenges in generating revenue, with a significant drop to zero in 2024 from $15.53 million in 2023. The company remains unprofitable, experiencing negative net income consistently. The severe negative EBIT and EBITDA margins indicate ongoing operational challenges and lack of profitability.
Balance Sheet
25
Negative
The company's balance sheet shows significant financial distress, with negative stockholders' equity in 2024 indicating more liabilities than assets. The total debt has decreased slightly, but the negative equity undermines financial stability. The lack of equity cushion poses a risk to solvency.
Cash Flow
35
Negative
There is a negative trend in cash flow, with negative operating and free cash flow persisting. While operating cash flow slightly improved in 2024, overall cash flow metrics indicate a critical need for cash management improvements. Minimal investing and financing activities limit cash flow improvements.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.94M15.53M13.91M4.36M0.00
Gross Profit
3.94M12.46M10.23M-99.79M-3.33M
EBIT
-89.15M-88.13M-97.58M-128.32M-97.83M
EBITDA
-89.15M-85.06M-93.91M-124.54M-105.06M
Net Income Common Stockholders
-131.21M-87.68M-96.05M-128.33M-108.54M
Balance SheetCash, Cash Equivalents and Short-Term Investments
56.94M135.70M125.83M190.73M243.51M
Total Assets
70.09M151.53M146.69M235.37M265.30M
Total Debt
8.38M11.14M12.57M14.46M13.01M
Net Debt
-28.62M-124.57M-68.77M-172.36M-207.38M
Total Liabilities
99.07M59.45M42.79M50.64M45.26M
Stockholders Equity
-28.97M92.08M103.90M184.73M220.04M
Cash FlowFree Cash Flow
-80.87M-79.02M-80.33M-116.55M-76.33M
Operating Cash Flow
-80.74M-79.00M-79.39M-115.66M-74.26M
Investing Cash Flow
-18.28M44.98M-26.29M3.02M32.76M
Financing Cash Flow
355.00K88.33M164.00K78.68M192.35M

Aligos Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.14
Price Trends
50DMA
18.36
Negative
100DMA
23.56
Negative
200DMA
17.36
Negative
Market Momentum
MACD
-2.79
Negative
RSI
24.28
Positive
STOCH
7.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGS, the sentiment is Negative. The current price of 7.14 is below the 20-day moving average (MA) of 10.85, below the 50-day MA of 18.36, and below the 200-day MA of 17.36, indicating a bearish trend. The MACD of -2.79 indicates Negative momentum. The RSI at 24.28 is Positive, neither overbought nor oversold. The STOCH value of 7.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGS.

Aligos Therapeutics Risk Analysis

Aligos Therapeutics disclosed 91 risk factors in its most recent earnings report. Aligos Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Aligos Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$139.54B292.942.28%2.79%6.16%-91.54%
64
Neutral
$124.50B-3.15%11.64%-114.72%
52
Neutral
$668.27M-68.76%-65.98%14.00%
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
46
Neutral
$117.76M-69.10%-9.55%24.57%
37
Underperform
$43.66M-415.84%-74.60%
37
Underperform
$87.06M-409.51%19.70%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALGS
Aligos Therapeutics
7.58
-17.67
-69.98%
GILD
Gilead Sciences
111.89
43.57
63.77%
ACHV
Achieve Life Sciences
2.55
-2.04
-44.44%
ABUS
Arbutus Biopharma
3.51
0.59
20.21%
VRTX
Vertex Pharmaceuticals
483.49
74.68
18.27%
ENTA
Enanta Pharmaceuticals
5.30
-11.41
-68.28%

Aligos Therapeutics Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Aligos Therapeutics Secures $105M in Private Placement
Positive
Feb 12, 2025

On February 11, 2025, Aligos Therapeutics entered into a Securities Purchase Agreement with investors for a private placement, expected to result in approximately $105 million in gross proceeds. This funding is anticipated to support the advancement of their ALG-000184 into a Phase 2 clinical study and extend the company’s cash runway into the second half of 2026. The private placement, led by a life sciences investment firm, involves the sale of common stock and warrants and is expected to close on February 13, 2025. This financial boost is a strategic move to solidify Aligos’s position in the biotechnology industry focused on liver and viral diseases, providing potential long-term benefits for stakeholders.

Executive/Board ChangesBusiness Operations and Strategy
Aligos Therapeutics Appoints Lesley Ann Calhoun as COO
Positive
Feb 3, 2025

On January 30, 2025, Aligos Therapeutics appointed Lesley Ann Calhoun as Chief Operating Officer while she retains her role as Chief Financial Officer. This strategic appointment aims to leverage her extensive financial and operational experience, potentially strengthening the company’s leadership and operational efficiency.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.