Rallybio (RLYB) AI Stock Analysis

• Market Cap: $10.42M
• Dividend Yield: N/A
• Average Volume (3M): 131.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: N/A
• EPS Growth: 27.35%
• Country: US
• Employees: 25
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 41,612,038
• 10 Day Avg. Volume: 304,331
• 30 Day Avg. Volume: 131,859
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 46.47
• Price to Cash Flow (P/CF): -0.70
• 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: $7.00
• Price Target Upside: 2233.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Rallybio's stock is under significant pressure due to poor financial performance characterized by operational losses and negative cash flows, compounded by bearish technical indicators and challenging valuation metrics. Without revenue growth, the sustainability of operations is at risk, making it a highly speculative investment in its current state.

Positive Factors

Cash Position

Rallybio ended with $66M in cash, which provides runway into the second half of 2026.

Investor Interest

Phase 1 data for differentiated C5 inhibitor RLYB116 could draw investor interest back to RLYB.

Pipeline Development

Rallybio will focus its resources on advancing other pipeline programs, notably RLYB116, an inhibitor of complement component 5 with potential applications in treating complement-related diseases.

Negative Factors

Clinical Data Challenges

RLYB212 failed to meet the minimum target pharmacokinetic concentration, making it difficult to dose adjust safely.

Financial Valuation

The negative pharmacokinetic data from RLYB212 is considered a major setback, as the FNAIT program represented the most significant component of the company's valuation.

Program Discontinuation

Rallybio has announced the discontinuation of its RLYB212 program for the prevention of fetal and neonatal alloimmune thrombocytopenia.

Rallybio Business Overview & Revenue Model

Company Description

Rallybio (RLYB) is a biotechnology company focused on identifying and developing transformative therapies for patients with severe and rare disorders. The company operates within the biopharmaceutical sector, leveraging cutting-edge science and innovative research to address unmet medical needs. Rallybio's core products and services include the development of novel therapeutics in areas such as hematology, immunology, and metabolic disorders.

How the Company Makes Money

Rallybio makes money through the development and commercialization of its proprietary drug candidates. Revenue is primarily generated from partnerships and collaborations with larger pharmaceutical companies, which may include milestone payments, royalties, and licensing fees. Additionally, the company may receive funding from grants and research agreements to support its clinical trials and product development efforts. As Rallybio advances its pipeline products through clinical trials and towards regulatory approval, it aims to establish further commercial agreements to drive revenue growth.

Rallybio Financial Statement Overview

Summary

Rallybio's financial performance is weak, with significant operational losses, strong equity relative to liabilities, and negative cash flows typical for a biotech in development. The lack of revenue growth presents severe sustainability challenges.

Income Statement

Rallybio's income statement reveals significant challenges, with high negative EBIT and net income figures, indicating substantial losses. The gross profit margin is theoretically 100% due to low revenue but masks the underlying operational losses. The company has shown no revenue growth, reflecting the R&D stage typical in biotech, yet this poses sustainability concerns.

Balance Sheet

The balance sheet shows a strong equity base relative to liabilities, with a high equity ratio due to minimal debt. However, the substantial and consistent net losses are eroding equity, with return on equity being severely negative, indicating inefficient use of equity capital.

Cash Flow

Rallybio's cash flow statement highlights a concerning trend of negative operating and free cash flows, indicating cash burn typical for a biotech firm in development phases. The positive but declining cash position from financing activities raises sustainability questions without revenue growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
636.00K	0.00	0.00	0.00	0.00
	Gross Profit
636.00K	-150.00K	-167.00K	-109.00K	-62.03K
	EBIT
-60.50M	-78.93M	-67.88M	-45.65M	-25.30M
	EBITDA
-60.50M	-72.37M	-65.41M	-45.39M	-24.83M
	Net Income Common Stockholders
-57.77M	-74.56M	-66.49M	-47.01M	-24.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
65.51M	109.93M	168.99M	175.33M	140.23M
	Total Assets
68.11M	115.62M	180.44M	182.19M	141.86M
	Total Debt
154.00K	392.00K	555.00K	0.00	0.00
	Net Debt
-13.75M	-24.10M	-56.40M	-175.33M	-140.23M
	Total Liabilities
6.45M	9.44M	11.12M	6.58M	187.88M
	Stockholders Equity
61.65M	106.18M	169.32M	175.60M	-47.01M
Cash Flow		Free Cash Flow
-49.28M	-60.28M	-57.34M	-45.87M	-22.18M
	Operating Cash Flow
-49.28M	-60.27M	-57.28M	-45.53M	-22.04M
	Investing Cash Flow
33.49M	27.66M	-112.17M	-2.33M	-2.07M
	Financing Cash Flow
5.20M	143.00K	51.08M	82.97M	144.89M

Rallybio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLYB, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.57, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 31.58 is Neutral, neither overbought nor oversold. The STOCH value of 92.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLYB.

Rallybio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
ADXN	45 Neutral	$12.78M	0.91	-92.60%	―	-70.05%	―
NERV	37 Underperform	$12.31M	9.26	>-0.01%	―	―	―
RLYB	35 Underperform	$10.42M	―	-68.85%	―	―	27.35%
MRKR	35 Underperform	$13.39M	―	-65.81%	―	-3.23%	38.05%
ICU	33 Underperform	$12.35M	―	1475.93%	―	―	75.26%
MBRX	32 Underperform	$14.98M	―	-135.80%	―	―	52.82%