CervoMed (CRVO) AI Stock Analysis

• Market Cap: $124.36M
• Dividend Yield: N/A
• Average Volume (3M): 8.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 142.42%
• EPS Growth: 53.38%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 76
• Industry: Biotechnology
• EPS (TTM): -2.02
• Shares Outstanding: 8,702,719
• 10 Day Avg. Volume: 26,488,066
• 30 Day Avg. Volume: 8,872,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 12.77
• Price to Cash Flow (P/CF): -3.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.83
• Price Target Upside: 47.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

CervoMed's stock is impacted by poor financial performance and valuation concerns, but it is buoyed by strong technical indicators and positive clinical trial results. The company's ongoing financial instability, marked by operational losses and cash flow issues, is counterbalanced by the potential growth from its promising drug development outcomes.

Positive Factors

Clinical Data

CervoMed's latest data from the open label extension (OLE) study is boosting investor confidence, and a more risk-on approach is seen heading into the next steps for neflamapimod in dementia with Lewy bodies (DLB) patients.

Product Improvement

Newly manufactured capsules of neflamapimod have meaningfully improved CDR-SB scores compared to old capsules in the initial 16 weeks, indicating significant cognitive benefits.

Regulatory Prospects

Management has indicated a potential meeting with the FDA after complete OLE 32 week data and data from the French study at a higher dose, which may allow CervoMed to proceed directly to a Phase 3 trial.

Negative Factors

Clinical Trial Results

The trial did not meet statistical significance thresholds for its primary endpoint of change in the Clinical Dementia Rating Sum of Boxes (CDR-SB) or any of its key secondary endpoints.

Market Uncertainty

Disappointing neflamapimod clinical data creates uncertainty—downgrading to Neutral without a price target.

Strategic Challenges

A Phase 3 trial would require additional funding, and current volatile macro conditions present challenges for small/mid-cap biotech stocks like CRVO.

CervoMed Business Overview & Revenue Model

Company Description

CervoMed Inc., a clinical-stage biotechnology company, engages in the development and commercialization of drug treatments for neurodegenerative diseases. It develops neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, and brain stroke recovery. The company is based in Boston, Massachusetts.

How the Company Makes Money

CervoMed generates revenue primarily through the development and commercialization of its therapeutic products. The company invests heavily in research and development to create proprietary drugs and treatments, which are then patented and brought to market. Revenue streams include product sales, licensing agreements, and potential collaborations with larger pharmaceutical companies. These partnerships can provide upfront payments, milestone payments, and royalties on sales, contributing significantly to CervoMed's earnings. Additionally, the company may receive funding from grants and research institutions to support its development pipeline.

CervoMed Financial Statement Overview

Summary

CervoMed faces significant challenges in revenue generation and profitability with consistent operational losses. The balance sheet shows improved leverage metrics, but the absence of revenue growth and persistent cash flow issues highlight financial instability. The company's reliance on financing activities for liquidity underscores ongoing financial risks.

Income Statement

CervoMed has shown a lack of revenue generation in recent years, with no revenue recorded in the latest periods and a significant decrease from the previous year. The company's gross profit margin is nonexistent due to zero revenues, and the net income remains negative, indicating continued losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The company's balance sheet shows a positive equity position with a growing stockholders' equity, but this is overshadowed by historical high levels of debt and negative equity in prior years. The current debt position is improved with no total debt reported, leading to a lower leverage risk. However, persistent negative net income affects the return on equity.

Cash Flow

CervoMed has consistently negative operating cash flow, indicating cash outflows from regular operations. Despite the negative free cash flow over the years, the company has managed to maintain liquidity through significant financing activities. However, declining free cash flow growth poses a concern for future cash availability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.13M	0.00	7.14M	0.00	0.00	0.00
	Gross Profit
2.46M	0.00	-1.29M	-1.34M	-93.42K	-103.17K
	EBIT
-13.47M	-18.23M	-7.81M	-3.48M	-16.04M	-15.97M
	EBITDA
-13.47M	-18.23M	-2.17M	0.00	-24.45M	-15.76M
	Net Income Common Stockholders
-11.95M	-16.29M	-2.17M	-5.80M	-24.10M	-14.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.37M	38.92M	7.79M	4.09M	37.31M	18.52M
	Total Assets
8.00M	43.08M	9.97M	4.16M	37.84M	29.55M
	Total Debt
0.00	0.00	0.00	36.70M	10.03M	149.16K
	Net Debt
-6.37M	-9.00M	-7.79M	32.61M	-27.29M	-18.37M
	Total Liabilities
2.66M	3.88M	2.60M	37.44M	2.93M	4.73M
	Stockholders Equity
5.34M	39.20M	7.38M	-33.29M	34.91M	24.81M
Cash Flow		Free Cash Flow
-14.26M	-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
	Operating Cash Flow
-14.26M	-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
	Investing Cash Flow
-37.97M	-28.66M	0.00	-12.24M	4.00K	0.00
	Financing Cash Flow
46.31M	46.40M	11.15M	0.00	33.30M	17.89M

CervoMed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRVO, the sentiment is Positive. The current price of 10.71 is above the 20-day moving average (MA) of 5.34, above the 50-day MA of 3.47, and above the 200-day MA of 10.63, indicating a bullish trend. The MACD of 2.41 indicates Negative momentum. The RSI at 69.62 is Neutral, neither overbought nor oversold. The STOCH value of 77.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRVO.

CervoMed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	77 Outperform	$2.80B	12.35	38.89%	―	31.85%	―
BIIB	67 Neutral	$20.62B	12.60	10.36%	―	-1.60%	39.71%
AVXL	62 Neutral	$828.53M	―	-37.72%	―	―	-3.08%
CRVO	53 Neutral	$124.36M	―	-69.95%	―	142.42%	53.38%
AXSM	51 Neutral	$6.18B	―	-231.63%	―	42.53%	-15.29%
Sector *	49 Neutral	$6.95B	0.67	-53.43%	2.47%	22.78%	1.44%
SAVA	42 Neutral	$137.19M	―	-17.19%	―	―	81.00%

CervoMed Corporate Events

CervoMed Shares Business and Financial Updates Online

CervoMed has made available information about its business, clinical studies, development plans, and financial position on its website under the ‘Investors – Events and Presentations’ section. The company may use this information in various investor-related activities, but it does not commit to updating it publicly unless legally required.

CervoMed Reports Positive Phase 2b Trial Results

On March 10, 2025, CervoMed Inc. announced positive results from the first 16 weeks of the extension phase of its Phase 2b RewinD-LB clinical trial for neflamapimod, aimed at treating dementia with Lewy bodies. The new batch of neflamapimod capsules showed improved plasma drug concentrations and significant improvements in clinical outcomes compared to old capsules and placebo, suggesting potential to alter the disease course. This development marks a significant step forward in the treatment of DLB, with the company planning to engage with regulatory authorities for Phase 3 trials.

CervoMed Updates on Neflamapimod Trials for Dementia

On January 31, 2025, CervoMed provided an update on its development of neflamapimod for dementia with Lewy bodies, presented at the 8th International Lewy Body Dementia Conference. The RewinD-LB Phase 2b trial showed no significant differences between the neflamapimod and placebo groups during the 16-week double-blind phase, possibly due to the age of the drug batch. The company anticipates efficacy endpoint data from the open-label extension phase using newer capsules, which showed better plasma drug concentrations. These results will guide the next steps in neflamapimod’s development.