Processa Pharmaceuticals (PCSA) AI Stock Analysis

• Market Cap: $1.16M
• Dividend Yield: N/A
• Average Volume (3M): 3.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: N/A
• EPS Growth: 56.26%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -3.88
• Shares Outstanding: 5,269,240
• 10 Day Avg. Volume: 6,057,015
• 30 Day Avg. Volume: 3,978,771
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.10
• 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: $6.00
• Price Target Upside: 2400.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Processa Pharmaceuticals' overall score reflects its high-risk financial standing due to consistent losses, lack of revenue, and negative cash flow. While the company has successfully raised additional capital, which offers some liquidity cushion, the stock's bearish technical indicators and speculative valuation significantly weigh on its overall assessment. The potential for a short-term rebound exists due to oversold technical conditions, but substantial risks remain without clear revenue generation.

Positive Factors

Clinical Trials

The Phase 2 trial for NGC-Cap is designed to evaluate the safety-efficacy profile of NGC-Cap versus monotherapy capecitabine, which could lead to positive advancements in treating advanced or metastatic breast cancer.

Drug Development

NGC-Iri, an analog of SN-38, showed a more favorable adverse event profile and greater efficacy in preclinical models compared to existing treatments, indicating potential improvements in cancer therapy.

Funding

Processa completed a $5M public offering, which is believed to be sufficient to fund the company into 2H25.

Negative Factors

Financial Performance

Processa reported a net loss of ($2.7M) and ($11.9M) for 4Q24 and full-year results, ending the period with $1.2M in cash and equivalents and no debt.

Financing Concerns

Concerns remain that challenging financing conditions can limit Processa’s ability to complete the study due to cash balance and market cap.

Operational Delays

There is concern over potential delays for the interim analysis, which is a significant event for Processa.

Processa Pharmaceuticals Business Overview & Revenue Model

Company Description

Processa Pharmaceuticals (PCSA) is a clinical-stage biopharmaceutical company focused on developing innovative drug products to address unmet medical needs. Operating primarily in the biopharmaceutical and healthcare sectors, the company is committed to advancing its pipeline of promising drug candidates through various stages of clinical development to ultimately improve patient outcomes.

How the Company Makes Money

Processa Pharmaceuticals makes money by advancing its pipeline of drug candidates through clinical trials and regulatory approval processes, eventually leading to commercialization. The company's revenue model is centered around licensing agreements, milestone payments, and potential royalties from successful partnerships with larger pharmaceutical companies. Additionally, Processa may generate income through strategic collaborations and alliances that provide funding for research and development activities, allowing them to bring their drug products to market. The success of their revenue model heavily depends on the clinical advancement and approval of their drug candidates.

Processa Pharmaceuticals Financial Statement Overview

Summary

Processa Pharmaceuticals is in a challenging financial position, characteristic of early-stage biotech firms. The absence of revenue generation, ongoing losses, and reliance on external financing highlight the company's high-risk profile. While the low debt level provides some leverage flexibility, the focus remains on securing sustainable revenue sources to improve financial health.

Income Statement

The company has not generated any revenue over the past years, which is typical for early-stage biotechnology firms focusing on R&D. However, it has consistently incurred net losses. The absence of revenue growth and negative profit margins indicate ongoing operational challenges.

Balance Sheet

The company maintains a relatively low level of debt, as evidenced by a low debt-to-equity ratio. However, declining stockholders' equity over the years suggests ongoing financial strain, likely due to consistent losses. The equity ratio remains positive, indicating some level of financial stability.

Cash Flow

The company has been generating negative operating cash flow, reflecting its inability to cover expenses without external financing. Free cash flow is also negative, indicating a reliance on financing activities to sustain operations. This poses a risk for long-term sustainability unless revenue generation begins.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-222.00	-27.53M	-12.13M	-15.14M
	EBIT
0.00	-11.46M	-27.53M	-12.13M	-15.14M
	EBITDA
0.00	-11.46M	-19.47M	-11.08M	-5.63M
	Net Income Common Stockholders
-11.85M	-11.12M	-54.85M	-11.43M	-14.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19M	4.71M	6.50M	16.50M	15.42M
	Total Assets
3.23M	5.79M	8.62M	26.46M	25.21M
	Total Debt
73.51K	150.55K	229.45K	78.46K	328.12K
	Net Debt
-1.12M	-4.56M	-6.27M	-16.42M	-15.09M
	Total Liabilities
1.53M	797.48K	1.15M	978.40K	2.27M
	Stockholders Equity
1.70M	4.99M	7.47M	25.49M	22.94M
Cash Flow		Free Cash Flow
-11.25M	-8.07M	-9.61M	-8.72M	-3.14M
	Operating Cash Flow
-11.25M	-8.06M	-9.61M	-8.72M	-3.14M
	Investing Cash Flow
-3.24K	-2.78K	0.00	0.00	0.00
	Financing Cash Flow
7.73M	6.27M	-388.84K	9.80M	17.87M

Processa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 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 PCSA, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.42, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 32.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCSA.

Processa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
GRI	42 Neutral	$1.05M	―	-382.57%	―	―	98.55%
ONCO	33 Underperform	$863.99K	―	-233.77%	―	―	-97.16%
SLRX	30 Underperform	$1.40M	―	-164.02%	―	―	79.57%
ZVSA	29 Underperform	$2.41M	―	-96.10%	―	―	99.39%
PCSA	22 Underperform	$1.16M	―	-354.51%	―	―	56.26%

Processa Pharmaceuticals Corporate Events

Processa Pharmaceuticals Raises $5M in Public Offering

On January 27, 2025, Processa Pharmaceuticals entered into a securities purchase agreement with a healthcare-focused institutional investor, resulting in the sale of shares and warrants in a public offering. The offering closed on January 29, 2025, raising approximately $5 million in gross proceeds, which the company intends to use for general corporate purposes, marking a significant financial move within the industry.