Tourmaline Bio (TRML) AI Stock Analysis

• Market Cap: $410.79M
• Dividend Yield: N/A
• Average Volume (3M): 311.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: N/A
• EPS Growth: 81.16%
• Country: US
• Employees: 44
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.82
• Shares Outstanding: 25,642,610
• 10 Day Avg. Volume: 240,050
• 30 Day Avg. Volume: 311,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.00
• 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: $57.25
• Price Target Upside: 257.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Tourmaline Bio's overall score is primarily impacted by its financial performance, with significant concerns regarding ongoing losses and negative cash flows. Technical analysis suggests a bearish trend, but oversold conditions could present a turnaround opportunity. Valuation remains challenging due to negative profitability. Positive corporate events provide some optimism for future growth, but substantial risks remain.

Positive Factors

Clinical Trials

TRML announced that the Phase 2 TRANQUILITY study of pacibekitug in ASCVD has surpassed its enrollment target, with 143 patients enrolled, indicating significant physician and patient interest in the mechanism.

Financial Position

With over $300 million cash runway into 2027, the company is well positioned to advance its pipeline in cardiovascular inflammation, a rapidly emerging area of focus.

Product Differentiation

The company's initial asset, pacibekitug, is a long-acting IL-6 inhibitor that has the potential to be best-in-class, given its high affinity, long half-life, and low immunogenicity.

Negative Factors

Strategic Decisions

Due to the company’s prioritization of its cardiovascular programs, management has decided not to start a pivotal trial in 2H24.

Tourmaline Bio Business Overview & Revenue Model

Company Description

Tourmaline Bio (TRML) is a biotechnology company focused on developing innovative therapies for serious diseases. The company operates within the pharmaceuticals and life sciences sectors, specializing in the research and development of biologic drugs aimed at addressing unmet medical needs. Tourmaline Bio leverages advanced biological insights and cutting-edge technologies to create therapies that have the potential to improve patient outcomes.

How the Company Makes Money

Tourmaline Bio makes money primarily through the development and commercialization of its proprietary biologic drugs. The company generates revenue through licensing agreements, research collaborations, and strategic partnerships with other pharmaceutical companies. These collaborations often involve upfront payments, milestone payments, and royalties based on the sales of successfully developed drugs. Additionally, Tourmaline Bio may receive funding from grants and government programs aimed at supporting biotech innovation. Its revenue model is heavily reliant on the successful development and approval of its drug candidates, which can then be marketed and sold in various global markets.

Tourmaline Bio Financial Statement Overview

Summary

Tourmaline Bio shows potential with recent revenue emergence, but profitability and cash flow generation remain significant concerns. The strong equity position supports financial stability, but ongoing losses and negative cash flows highlight the need for improved operational efficiency and revenue growth.

Income Statement

Tourmaline Bio has shown limited revenue generation, with a negative net profit margin due to consistent net losses over the years. The company reported revenue for the first time in the TTM period, but profitability remains a challenge with substantial negative EBIT and EBITDA margins.

Balance Sheet

The company maintains a strong equity position, with a high stockholders' equity to total assets ratio, indicating financial stability. However, the persistent negative net income raises concerns about long-term equity sustainability. The debt-to-equity ratio is favorable due to low debt levels.

Cash Flow

Tourmaline Bio has struggled with negative operating and free cash flows, suggesting challenges in generating cash from operations. The significant financing inflows have helped maintain liquidity, but the ratio of operating cash flow to net income is negative, reflecting cash flow challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.28M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
1.12M	-33.00K	-6.00K	-623.00K	-447.00K	-379.00K
	EBIT
-59.82M	-45.41M	-19.70M	-904.00	-22.68M	-18.38M
	EBITDA
-71.01M	-45.38M	-19.70M	-46.88M	-22.24M	-17.78M
	Net Income Common Stockholders
-48.85M	-42.12M	-19.70M	-904.00	-22.71M	-18.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
202.95M	202.95M	8.26M	150.00K	149.49M	38.98M
	Total Assets
210.29M	210.29M	9.10M	150.00K	152.78M	41.94M
	Total Debt
415.00K	415.00K	504.00K	150.00K	0.00	0.00
	Net Debt
-140.31M	-140.31M	-7.75M	0.00	-17.59M	-38.98M
	Total Liabilities
5.25M	5.25M	28.83M	376.00K	4.77M	2.35M
	Stockholders Equity
205.04M	205.04M	-19.73M	-226.00K	148.00M	39.59M
Cash Flow		Free Cash Flow
-45.35M	-28.14M	-11.53M	-42.42M	-20.50M	-18.22M
	Operating Cash Flow
-45.35M	-28.08M	-6.46M	-39.99M	-19.21M	-17.66M
	Investing Cash Flow
-299.11M	3.84M	-5.07M	-96.39M	-133.30M	-562.00K
	Financing Cash Flow
317.81M	156.72M	19.85M	137.40M	131.12M	36.20M

Tourmaline Bio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.02
• 50DMA: Positive
• 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 TRML, the sentiment is Neutral. The current price of 16.02 is above the 20-day moving average (MA) of 13.37, above the 50-day MA of 16.02, and below the 200-day MA of 18.90, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 87.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRML.

Tourmaline Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNSA	62 Neutral	$1.57B	―	-9.85%	―	56.60%	-403.56%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
FHTX	48 Neutral	$246.92M	―	322.49%	―	-33.83%	27.89%
TRML	44 Neutral	$410.79M	―	-27.54%	―	―	81.16%
IMVT	38 Underperform	$3.33B	―	-74.17%	―	―	-43.10%
CNTX	33 Underperform	$53.17M	―	-58.98%	―	―	29.85%

Tourmaline Bio Corporate Events

Tourmaline Bio Updates on Clinical Progress and Outlook

Tourmaline Bio has released an updated corporate presentation detailing its progress and future plans, including significant clinical trial milestones for its lead product, pacibekitug. The company is well-financed, with cash expected to fund operations into 2027, positioning it to achieve key milestones that could enhance its market position and provide value to stakeholders.

Tourmaline Bio Unveils Clinical Progress and New Indication

Tourmaline Bio announced key updates at its Investor Day, highlighting progress in its clinical trials and strategic priorities. The company reported over-enrollment in its Phase 2 TRANQUILITY trial and introduced a new indication for pacibekitug, abdominal aortic aneurysm, while planning further developments contingent on trial outcomes, positioning itself for potential expansion in cardiovascular inflammation treatment.