Brainstorm Cell Therapeutics (BCLI) AI Stock Analysis

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Brainstorm Cell Therapeutics

(NASDAQ:BCLI)

24Underperform

Brainstorm Cell Therapeutics is currently facing severe financial and operational challenges, with substantial net losses and negative cash flows threatening its stability. While the company has made strategic advancements in regulatory and partnership areas, significant financial constraints and skepticism about their flagship product's efficacy weigh heavily on the stock's outlook. Technical indicators show a bearish trend, and the valuation reflects the company's ongoing difficulties. Overall, the stock is high-risk with considerable uncertainty about its future prospects.

Positive Factors

Regulatory Environment

Changes to the regulatory landscape seem to support a more favorable environment for NurOwn, with the agency more open to evaluating large datasets and understanding how biomarkers correlate with patient outcomes.

Therapy Validation

There is increasing traction for MSCs within ALS with 5 groups now targeting ALS, providing additional validation for NurOwn – BrainStorm's proprietary cell therapy platform.

Negative Factors

Financial Performance

Valuations across much of the Biotech space have continued to pullback and reset, with reductions in price targets for multiple stocks.

Market Conditions

Difficult market conditions, particularly for small/micro-cap stocks, and economic uncertainty continue to pressure broader markets.

Brainstorm Cell Therapeutics (BCLI) vs. S&P 500 (SPY)

Market Cap

$7.27M

Dividend YieldN/A

Average Volume (3M)33.03K

Price to Earnings (P/E)―

Beta (1Y)1.96

Revenue GrowthN/A

EPS Growth62.35%

CountryUS

Employees29

SectorHealthcare

Sector Strength74

IndustryBiotechnology

Share Statistics

EPS (TTM)-2.32

Shares Outstanding6,522,350

10 Day Avg. Volume37,230

30 Day Avg. Volume33,027

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)-1.20

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.00

Price Target Upside559.34% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Brainstorm Cell Therapeutics Business Overview & Revenue Model

Company DescriptionBrainstorm Cell Therapeutics Inc., a biotechnology company, engages in the development and commercialization of autologous cellular therapies for the treatment of neurodegenerative diseases. The company, through its NurOwn proprietary cell therapy platform, leverages cell culture methods to induce autologous bone marrow-derived mesenchymal stem cells to secrete high levels of neurotrophic factors, modulate neuroinflammatory and neurodegenerative disease processes, promote neuronal survival, and enhance neurological function. It is developing NurOwn, which has completed Phase III clinical trial for the treatment of amyotrophic lateral sclerosis; and Phase II clinical trial for the treatment of progressive multiple sclerosis and alzheimer's disease, as well as for other neurodegenerative diseases. The company has a partnership with Catalent for manufacturing NurOwn. The company was formerly known as Golden Hand Resources Inc. and changed its name to Brainstorm Cell Therapeutics Inc. in November 2004. Brainstorm Cell Therapeutics Inc. was incorporated in 2000 and is headquartered in New York, New York.

How the Company Makes MoneyBrainstorm Cell Therapeutics generates revenue through the development and commercialization of its proprietary cellular therapies. The company's primary revenue stream is expected to come from the sale or licensing of NurOwn, pending regulatory approval and successful commercialization. Additionally, Brainstorm may engage in strategic partnerships and collaborations with pharmaceutical companies, research institutions, and other stakeholders to advance its clinical programs and expand its market reach. These partnerships may provide upfront payments, milestone payments, and royalties, contributing to the company's earnings. Other potential revenue sources include government grants and funding from non-profit organizations that support research in neurodegenerative diseases.

Brainstorm Cell Therapeutics Financial Statement Overview

Summary

Brainstorm Cell Therapeutics faces significant financial challenges with negative profitability, weak balance sheet stability, and reliance on external financing. The company needs substantial improvements in revenue generation and cost management to enhance its financial health.

Income Statement

Negative

The company has consistently generated negative net income and EBIT margins, with minimal to no revenue growth over the past years. Despite a small revenue in the TTM period, margins remain negative, indicating ongoing operational challenges.

Balance Sheet

Very Negative

The company's balance sheet shows negative stockholders' equity and high liabilities relative to assets, indicating financial instability. The high debt-to-equity ratio further suggests potential insolvency risks.

Cash Flow

Negative

The company has consistently negative operating cash flow, with no positive free cash flow growth. The cash flow from financing indicates reliance on external funding, which may not be sustainable long-term.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
139.00K	0.00	0.00	0.00	0.00	-366.00K
	Gross Profit
-55.00K	-265.00K	-285.00K	-260.00K	-219.00K	-732.00K
	EBIT
-13.31M	-21.44M	-24.82M	-24.54M	-31.68M	-23.00M
	EBITDA
-13.39M	-16.93M	-23.99M	-24.28M	-31.46M	-23.09M
	Net Income Common Stockholders
-14.23M	-17.19M	-23.73M	-24.38M	-31.94M	-23.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.22M	1.30M	2.98M	22.09M	41.94M	569.00K
	Total Assets
1.99M	4.21M	8.45M	29.28M	51.26M	6.53M
	Total Debt
9.00K	672.00K	4.09M	5.08M	7.22M	2.37M
	Net Debt
-1.21M	-628.00K	3.32M	-13.78M	-30.61M	1.83M
	Total Liabilities
1.99M	9.07M	11.47M	9.94M	15.79M	18.76M
	Stockholders Equity
3.00K	-4.86M	-3.02M	19.34M	35.46M	-12.22M
Cash Flow		Free Cash Flow
-11.33M	-20.48K	-19.35M	-26.59M	-35.57M	-11.72M
	Operating Cash Flow
-11.33M	-20.46M	-19.32M	-26.27M	-35.19M	-11.25M
	Investing Cash Flow
196.00K	2.19M	998.00K	323.00K	-4.45M	5.62M
	Financing Cash Flow
10.26M	18.98M	238.00K	6.97M	76.94M	5.22M

Brainstorm Cell Therapeutics Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.91

Price Trends

50DMA

1.55

Negative

100DMA

1.70

Negative

200DMA

2.79

Negative

Market Momentum

MACD

-0.12

Positive

RSI

28.78

Positive

STOCH

15.63

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCLI, the sentiment is Negative. The current price of 0.91 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.55, and below the 200-day MA of 2.79, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 28.78 is Positive, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCLI.

Brainstorm Cell Therapeutics Risk Analysis

Brainstorm Cell Therapeutics disclosed 64 risk factors in its most recent earnings report. Brainstorm Cell 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

Brainstorm Cell 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
CYRX	52 Neutral	$267.52M	―	-25.76%	―	-2.09%	-13.01%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
CLLS	46 Neutral	$89.07M	―	-34.08%	―	5397.35%	77.93%
FATE	42 Neutral	$105.39M	―	-54.21%	―	-78.55%	-0.92%
BLUE	36 Underperform	$47.48M	―	-295.35%	―	184.12%	31.92%
SGMO	35 Underperform	$157.00M	―	-187.83%	―	-67.20%	64.66%
BCLI	24 Underperform	$7.27M	―	234.90%	―	―	62.35%

* Healthcare Sector Average

Performance Comparison

BCLI

Brainstorm Cell Therapeutics

0.91

-7.85

-89.61%

SGMO

Sangamo Biosciences

0.72

0.18

33.33%

BLUE

Bluebird Bio

4.67

-17.33

-78.77%

FATE

Fate Therapeutics

0.94

-4.83

-83.71%

CYRX

CryoPort

5.23

-12.25

-70.08%

CLLS

Cellectis SA

1.23

-1.46

-54.28%

Brainstorm Cell Therapeutics Earnings Call Summary

Earnings Call Date: Mar 31, 2025 | % Change Since: -23.53% | Next Earnings Date: May 19, 2025

Earnings Call Sentiment Neutral

The call highlighted significant regulatory and strategic advancements, cost reduction measures, and commitment from the leadership team. However, it also acknowledged delays in the Phase 3b trial initiation, financial constraints, and skepticism about NurOwn's efficacy. The company is focused on overcoming these challenges with strategic funding and partnerships.

Highlights

Regulatory Advancements

Secured a special protocol assessment with the FDA, significantly derisking the regulatory pathway for NurOwn, the ALS treatment.

Strategic Partnerships for Trial Execution

Partnership with IQVIA for managing the Phase 3b trial and with Pluri Inc. for GMP compliant production of NurOwn.

Cost Reduction Achievements

Research and development expenses reduced from $10.7 million in 2023 to $4.7 million in 2024. General and administrative expenses also decreased from $10.7 million in 2023 to $7 million in 2024.

Financial Strategy and Inducement

Raised approximately $1.64 million through a warrant inducement agreement. Actively pursuing multiple funding avenues including licensing non-core assets and exploring non-dilutive financing opportunities.

Commitment from Leadership

Senior leadership and staff have taken salary reductions or worked without compensation to advance the trial.

Lowlights

Delays in Phase 3b Trial Initiation

Perceived delays in initiating the Phase 3b trial due to regulatory and financial constraints. Complexity of trial preparation is cited as a reason.

Financial Constraints and Net Loss

Net loss for 2024 was approximately $11.6 million compared to $17.2 million in 2023. Cash and cash equivalents reduced from $1.5 million in 2023 to $0.4 million in 2024.

Skepticism About Efficacy

Continued skepticism from analysts and investors regarding the efficacy of NurOwn, requiring robust data to validate the treatment.

Company Guidance

In the recent earnings call, BrainStorm Cell Therapeutics provided detailed guidance on their strategic focus and financial outlook for 2025. The company is prioritizing the execution of the critical Phase 3b trial of NurOwn, their investigational treatment for ALS, with the aim of confirming its potential to significantly slow disease progression in early-stage patients. They have secured a special protocol assessment from the FDA, which derisks the regulatory pathway, and are in active negotiations with approximately 15 leading clinical centers in the U.S. to finalize clinical trial agreements. The company anticipates that they will need approximately $20 million to $30 million annually to fund the trial, and they are actively pursuing multiple funding avenues, including licensing non-core assets and exploring non-dilutive financing opportunities. Additionally, BrainStorm has partnered with IQVIA for trial execution and has contracted with Pluri Inc. for clinical manufacturing. As of December 2024, the company's cash, cash equivalents, and restricted cash stood at approximately $0.4 million, compared to $1.5 million at the end of 2023, and they have announced a warrant inducement agreement expected to raise approximately $1.64 million in gross proceeds.

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.