Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $3.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: 13.99%
• EPS Growth: 0.17%
• Country: US
• Employees: 253
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.90
• Shares Outstanding: 120,212,300
• 10 Day Avg. Volume: 1,287,958
• 30 Day Avg. Volume: 1,316,033
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 326.32
• Price to Cash Flow (P/CF): -8.90
• 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: $67.83
• Price Target Upside: 108.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

Avidity Biosciences is currently experiencing significant financial distress with persistent net losses and negative cash flows. Despite maintaining a strong equity position, the financial health of the company is reliant on future profitability improvements. Technical indicators reflect a bearish trend, and the stock's valuation metrics provide little incentive for investment due to negative earnings. The overall score indicates caution, with substantial risks outweighing potential benefits.

Positive Factors

Market Opportunity

Avidity's drugs could be first-in-disease for DM1 and FSHD, indicating a significant market opportunity.

Regulatory Approval

Avidity's main catalyst is the FDA's decision on FSHD regulatory pathway, whereby the base-case scenario assumes a full-approval pathway.

Negative Factors

Regulatory Challenges

The stock is expected to be driven by Ph1/2 OLE data from the del-zota DMD44 program.

Avidity Biosciences Business Overview & Revenue Model

Company Description

Avidity Biosciences Inc is a bio-technology company. The company develops novel Antibody Oligonucleotide Conjugates therapies designed to overcome the current limitations of oligonucleotide therapies in order to treat a wide range of serious diseases. Its product candidate AOC 1001, is designed to treat a rare monogenic muscle disease.

How the Company Makes Money

Avidity Biosciences generates revenue primarily through strategic collaborations and partnerships with larger pharmaceutical companies. These agreements often include upfront payments, milestone payments contingent on successful development progress, and potential royalties from product sales. Additionally, the company may receive research grants and funding from non-profit organizations or governmental bodies to support its innovative RNA-based therapeutic programs. The company's revenue model is highly dependent on the success of its research and development efforts and its ability to bring new therapies to market.

Avidity Biosciences Financial Statement Overview

Summary

Avidity Biosciences faces significant financial challenges with consistent net losses and negative cash flows, reflecting profitability and liquidity concerns. While the company has maintained strong equity levels and low leverage, primarily due to external financing, the sustainability of its financial health depends on improving operational performance and achieving profitability in the future.

Income Statement

Avidity Biosciences demonstrates a consistent negative net income and EBIT over the years, reflecting profitability challenges. The gross profit margin is 100% for the last reported year, suggesting that all revenue directly contributes to gross profit, but the high operating expenses lead to significant net losses. Revenue growth has been modest over the years, with a notable increase from 2023 to 2024, indicating some improvement in business development.

Balance Sheet

The company maintains a strong equity base, with stockholders' equity significantly higher than its total debt, resulting in a low debt-to-equity ratio, which is a positive indicator. However, consistent net losses raise concerns about the sustainability of equity levels. The equity ratio remains high, suggesting financial stability in terms of asset financing through equity.

Cash Flow

Avidity Biosciences struggles with negative operating and free cash flows, reflecting challenges in generating cash from operations. The free cash flow to net income ratio indicates that cash outflows exceed net losses. Although financing activities provide additional cash, reliance on external funding may not be sustainable long-term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.90M	9.56M	9.22M	9.33M	6.79M
	Gross Profit
10.90M	7.46M	7.84M	8.69M	-30.82M
	EBIT
-378.94M	-235.60M	-178.91M	-118.05M	-44.28M
	EBITDA
-378.94M	-233.50M	-177.53M	-117.41M	-43.77M
	Net Income Common Stockholders
-322.30M	-212.22M	-169.08M	-117.37M	-43.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.50B	595.35M	610.73M	405.54M	328.14M
	Total Assets
1.56B	628.55M	638.80M	427.58M	333.90M
	Total Debt
6.80M	9.85M	10.69M	9.96M	938.00K
	Net Debt
-213.07M	-175.23M	-329.71M	-395.58M	-327.20M
	Total Liabilities
138.94M	127.79M	60.73M	46.15M	27.68M
	Stockholders Equity
1.42B	500.76M	578.08M	381.43M	306.22M
Cash Flow		Free Cash Flow
-307.94M	-123.29M	-139.09M	-98.55M	-38.21M
	Operating Cash Flow
-300.87M	-119.06M	-136.27M	-94.81M	-37.12M
	Investing Cash Flow
-854.20M	-130.07M	-189.96M	-82.52M	-7.79M
	Financing Cash Flow
1.19B	93.86M	346.17M	176.32M	272.04M

Avidity Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.61
• 50DMA: Positive
• 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 RNA, the sentiment is Positive. The current price of 32.61 is above the 20-day moving average (MA) of 30.70, above the 50-day MA of 30.90, and below the 200-day MA of 38.67, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNA.

Avidity Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	72 Outperform	$147.29B	18.45	9.05%	6.50%	8.77%	272.80%
IONS	49 Neutral	$5.25B	―	-93.03%	―	-10.48%	-18.79%
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
ALNY	49 Neutral	$30.91B	―	-414.62%	―	22.97%	38.54%
MRNA	48 Neutral	$13.03B	―	-28.77%	―	-52.75%	25.00%
ARWR	47 Neutral	$2.07B	―	-600.68%	―	-98.62%	-86.21%
RNA	36 Underperform	$3.56B	―	-33.47%	―	13.99%	0.17%

Avidity Biosciences Corporate Events

Avidity Biosciences Unveils Advances in Cardiology Research

Avidity Biosciences is making strides in precision cardiology with its development of AOC 1072 and AOC 1086, designed to target rare genetic cardiomyopathies by delivering siRNA directly to the heart muscle. These candidates demonstrated significant gene knockdown and safety in preclinical studies. The company also revealed next-generation RNA technology innovations promising enhanced delivery and durability, which could revolutionize treatment options for genetic cardiac diseases.