CervoMed (CRVO) AI Stock Analysis

• Market Cap: $73.93M
• Dividend Yield: N/A
• Average Volume (3M): 9.51M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: 142.42%
• EPS Growth: 53.38%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -2.02
• Shares Outstanding: 8,702,719
• 10 Day Avg. Volume: 874,804
• 30 Day Avg. Volume: 9,506,055
• 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: 86.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

CervoMed's stock is weighed down by financial instability, marked by persistent losses and cash flow challenges. The recent positive clinical trial results offer a significant potential upside, but the speculative nature of these developments coupled with valuation challenges tempers the outlook. While technical indicators show some short-term momentum, the overall financial health remains a concern.

Positive Factors

Clinical Data

CervoMed presented data showing improvement in secondary and exploratory endpoints in patients treated with the 'new capsules' compared to the 'old capsules'.

Investor Confidence

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.

Negative Factors

Clinical Trial Results

In December 2024, randomized Phase 2b trial failed to show stat sig in CDR-SB between placebo and treatment arms.

Funding 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 (CRVO) is a biotechnology company focused on the development and commercialization of innovative therapies for the treatment of neurodegenerative diseases. The company operates within the healthcare and life sciences sectors, leveraging cutting-edge research and development to address unmet medical needs in conditions such as Alzheimer's disease and other neurological disorders.

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 terms of revenue generation and profitability with consistent operational losses. While the balance sheet shows improved leverage metrics, the absence of revenue growth and persistent cash flow issues highlight the financial instability. The company's reliance on financing activities for liquidity further indicates 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	7.14M	0.00	0.00	0.00
	Gross Profit
0.00	-1.29M	-1.34M	-93.42K	-103.17K
	EBIT
-18.23M	-7.81M	-3.48M	-16.04M	-15.97M
	EBITDA
-18.23M	-2.17M	0.00	-24.45M	-15.76M
	Net Income Common Stockholders
-16.29M	-2.17M	-5.80M	-24.10M	-14.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.92M	7.79M	4.09M	37.31M	18.52M
	Total Assets
43.08M	9.97M	4.16M	37.84M	29.55M
	Total Debt
0.00	0.00	36.70M	10.03M	149.16K
	Net Debt
-9.00M	-7.79M	32.61M	-27.29M	-18.37M
	Total Liabilities
3.88M	2.60M	37.44M	2.93M	4.73M
	Stockholders Equity
39.20M	7.38M	-33.29M	34.91M	24.81M
Cash Flow		Free Cash Flow
-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
	Operating Cash Flow
-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
	Investing Cash Flow
-28.66M	0.00	-12.24M	4.00K	0.00
	Financing Cash Flow
46.40M	11.15M	0.00	33.30M	17.89M

CervoMed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRVO, the sentiment is Negative. The current price of 8.5 is below the 20-day moving average (MA) of 9.89, above the 50-day MA of 5.53, and below the 200-day MA of 9.93, indicating a neutral trend. The MACD of 1.74 indicates Positive momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 24.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRVO.

CervoMed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	76 Outperform	$2.43B	10.72	38.89%	―	31.85%	―
BIIB	65 Neutral	$16.86B	10.30	10.36%	―	-1.60%	39.71%
AVXL	62 Neutral	$753.67M	―	-37.72%	―	―	-3.08%
AXSM	51 Neutral	$4.78B	―	-231.63%	―	42.53%	-15.29%
Sector *	48 Neutral	$6.35B	1.18	-46.25%	2.67%	19.35%	1.28%
CRVO	47 Neutral	$73.93M	―	-69.95%	―	142.42%	53.38%
SAVA	42 Neutral	$61.35M	―	-17.19%	―	―	81.00%

CervoMed Corporate Events

CervoMed Reports Positive Phase 2b Trial Results

On April 2, 2025, CervoMed announced positive clinical results from the first sixteen weeks of the open-label extension phase of their RewinD-LB Phase 2b clinical trial for neflamapimod, a treatment for dementia with Lewy bodies. The trial showed that neflamapimod slowed clinical progression and reduced falls compared to controls, with improvements in cognitive fluctuations and working memory. These findings, presented at the AD/PD 2025 conference, support the potential of neflamapimod as a transformative therapy for patients with dementia with Lewy bodies, and CervoMed plans to engage with regulatory authorities to finalize Phase 3 plans.

Spark’s Take on CRVO Stock

According to Spark, TipRanks’ AI Analyst, CRVO is a Neutral.

CervoMed’s stock score is primarily impacted by its financial challenges, with no revenue and persistent losses. However, technical indicators suggest positive momentum, and recent positive clinical trial results may improve future prospects. Valuation poses challenges due to negative earnings, but the potential for clinical success offers a speculative upside.

To see Spark’s full report on CRVO stock, click here.

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.