Neurogene (NGNE) AI Stock Analysis

• Market Cap: $370.71M
• Dividend Yield: N/A
• Average Volume (3M): 234.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: N/A
• EPS Growth: -342.14%
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 78
• Industry: Pharmaceuticals
• EPS (TTM): -4.49
• Shares Outstanding: 20,979,721
• 10 Day Avg. Volume: 185,687
• 30 Day Avg. Volume: 234,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 283.77
• Price to Cash Flow (P/CF): -4.20
• 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: $46.00
• Price Target Upside: 158.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Neurogene's stock is hindered by poor financial performance and weak technical indicators. Despite some positive corporate developments, including financing and trial progress, the financial and technical weaknesses weigh heavily on the stock's outlook.

Positive Factors

Clinical Performance

Low-dose NGN-401 data look impressive and better than TSHA-102.

Regulatory Approval

The FDA completed a review of the safety data for NGN-401 and allowed Neurogene to proceed with the low-dose level.

Negative Factors

Safety Concerns

Emerging, serious adverse event likely related to high-dose AAV.

Neurogene Business Overview & Revenue Model

Company Description

Neoleukin Therapeutics, Inc. is a biopharmaceutical company, which engages in the design of de novo protein therapeutics to address significant unmet medical needs in oncology, inflammation, and autoimmunity. Its lead product candidate, NL-201, is a combined IL-2 and IL-15 agonist designed to eliminate alpha receptor binding. The company was founded by Daniel-Adriano Silva, Carl Walkey, and Umut Ulge in December 2003 and is headquartered in Seattle, WA.

How the Company Makes Money

Neurogene makes money primarily through the development and commercialization of its gene therapy products. The company generates revenue by advancing its therapies through clinical trials and, upon receiving regulatory approval, bringing these therapies to market. Key revenue streams include partnerships and collaborations with other biopharmaceutical companies, where Neurogene may receive milestone payments, royalties, or licensing fees for its proprietary technologies. Additionally, strategic alliances with research institutions and healthcare organizations can contribute to its earnings through joint development programs and shared resources. Neurogene's financial success depends on its ability to navigate regulatory pathways, achieve clinical milestones, and effectively commercialize its gene therapy products.

Neurogene Financial Statement Overview

Summary

Neurogene faces significant financial challenges with consistent negative profitability and revenue generation issues. The balance sheet shows some cash stability but high liabilities are concerning. Cash flow is negative, heavily relying on unsustainable financing activities.

Income Statement

Neurogene has struggled with profitability, evidenced by consistent negative gross profit and net income. Recent TTM data shows a negative revenue growth and substantial net loss, highlighting ongoing financial challenges. The absence of revenue in previous years underscores the company's difficulty in generating sales, which is critical in the pharmaceuticals industry.

Balance Sheet

The company's balance sheet shows a relatively stable cash position with a significant portion of assets in cash equivalents. However, the debt-to-equity ratio has fluctuated due to negative equity in some years. Recent improvements in equity suggest potential stabilization, but the high total liabilities remain a concern.

Cash Flow

Neurogene's cash flow indicates challenges in generating positive cash flow from operations, with substantial negative free cash flow. The operating cash flow to net income ratio is poor, reflecting inefficiencies in converting net losses into operational cash. Financing activities have been the main source of cash, which may not be sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
925.00K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-17.54M	-3.26M	-3.20M	-2.28M	-1.82M	-340.00K
	EBIT
-97.61M	-55.58M	-56.52M	-50.53M	-41.55M	-24.44M
	EBITDA
-71.44M	-52.29M	-51.99M	-49.59M	-31.46M	-69.10M
	Net Income Common Stockholders
-71.13M	-36.32M	-55.19M	-50.52M	-33.28M	-69.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
142.47M	197.16M	82.02M	70.54M	192.56M	143.09M
	Total Assets
163.26M	222.57M	109.27M	101.49M	210.52M	147.02M
	Total Debt
12.98M	16.25M	4.69M	5.21M	12.12M	1.21M
	Net Debt
-129.48M	-131.96M	-77.33M	-65.33M	-180.43M	-141.88M
	Total Liabilities
20.40M	36.55M	255.00M	193.36M	19.30M	5.34M
	Stockholders Equity
142.86M	186.02M	-145.74M	-91.88M	191.22M	141.69M
Cash Flow		Free Cash Flow
-83.08M	-51.74M	-55.05M	-64.77M	-26.79M	-16.27M
	Operating Cash Flow
-82.62M	-51.42M	-52.82M	-46.40M	-24.57M	-15.39M
	Investing Cash Flow
-5.96M	25.64M	-2.23M	-18.37M	-2.22M	-688.00K
	Financing Cash Flow
86.01M	92.48M	66.53M	51.06M	77.14M	82.24M

Neurogene Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGNE, the sentiment is Positive. The current price of 17.78 is above the 20-day moving average (MA) of 17.31, below the 50-day MA of 18.27, and below the 200-day MA of 32.96, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGNE.

Neurogene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOLD	61 Neutral	$2.73B	―	-31.68%	―	32.29%	64.39%
RARE	54 Neutral	$3.55B	―	-214.50%	―	29.01%	23.93%
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
CRSP	46 Neutral	$3.63B	―	-19.20%	―	-89.95%	-123.71%
QURE	45 Neutral	$675.96M	―	-238.46%	―	71.17%	23.89%
BLUE	42 Neutral	$38.57M	―	-270.20%	―	144.50%	-141.91%
NGNE	34 Underperform	$370.71M	―	-66.90%	―	―	-342.14%

Neurogene Corporate Events

Neurogene Highlights Progress in Rett Syndrome Program

Neurogene has updated its corporate presentation, highlighting the progress and future plans for its NGN-401 program for Rett syndrome, which is currently in Phase 1/2 clinical trials. The company is leveraging its proprietary EXACT technology and in-house manufacturing to advance its pipeline and explore market opportunities, positioning itself strategically in the biopharmaceutical sector.

Neurogene Adjusts Clinical Trial After Setback

Neurogene’s Phase 1/2 clinical trial for Rett syndrome faced a setback as a participant died from complications linked to a high dose of adeno-associated virus (AAV). The FDA has approved continuing the trial with a reduced dose, influencing future trial designs. This development is crucial for stakeholders monitoring advancements in gene therapy trials.

Neurogene Adjusts NGN-401 Trial After Adverse Event

Neurogene Inc. updates its clinical trial for NGN-401 gene therapy targeting Rett syndrome after a serious adverse event in a high-dose participant led to critical conditions. While the FDA allows continuation at a lower dose, further high-dose enrollments are paused. Safety remains a priority as the trial progresses with no other adverse events reported at lower doses, showcasing potential for future treatments of neurological diseases.

Neurogene Reports Promising Interim Results for NGN-401 Trial

Neurogene Inc. has reported promising interim results from its Phase 1/2 trial of NGN-401 gene therapy for Rett syndrome, highlighting improvements in key areas like motor skills and communication among the first four low-dose pediatric participants. The therapy, which has shown a favorable safety profile, marks significant progress as it addresses the core symptoms of this challenging neurodevelopmental disorder. The company plans to continue the trial with an adolescent/adult cohort and anticipates further updates in 2025, potentially paving the way for a commercial launch.

Neurogene Secures $200M for Genetic Therapy Development

Neurogene Inc. has announced a $200 million private placement financing, involving top-tier healthcare funds, to support its innovative genetic therapies for rare neurological diseases. The proceeds are expected to fund the company into the second half of 2027, aiding in the development of its NGN-401 gene therapy for Rett syndrome and other projects. Neurogene aims to maximize the therapeutic impact with its EXACT™ platform, ensuring optimized efficacy and safety in its treatments.