Sernova (SVA) AI Stock Analysis

• Market Cap: C$65.70M
• Dividend Yield: N/A
• Average Volume (3M): 136.76K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.69
• Revenue Growth: N/A
• EPS Growth: 32.71%
• Country: CA
• Employees: 17
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -0.09
• Shares Outstanding: 328,484,770
• 10 Day Avg. Volume: 96,846
• 30 Day Avg. Volume: 136,760
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -3.10
• 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: C$6.00
• Price Target Upside: 2900.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Sernova's stock is highly risky due to severe financial challenges, including no revenue, significant losses, and negative equity. While technical analysis shows some short-term momentum, the longer-term outlook remains bearish. Valuation metrics further emphasize the high-risk profile. Despite positive corporate events, the financial distress significantly impacts the stock's overall attractiveness.

Positive Factors

Business Development

There is a high potential for business development, such as major partnership or acquisition.

Clinical Trials

Positive preclinical results justify further exploration with a planned first-in-human clinical trial to assess safety, tolerability, and efficacy in hypothyroidism.

Market Opportunity

Submission of an IND application for the Cell Pouch device in hypothyroidism could address a significant market opportunity estimated at approximately $2.2 billion.

Negative Factors

Clinical Dependency

A Phase 1/2 multi-cohort study is currently ongoing in T1D patients who are insulin dependent for more than 5 years.

Drug Dependency

Sernova's Cell Pouch device aims to reduce or eliminate the need for lifelong thyroid medications and improve quality of life for hypothyroidism patients.

Sernova Business Overview & Revenue Model

Company Description

Sernova Corp. (SVA) is a clinical-stage regenerative medicine company focused on developing and commercializing therapeutic cell technologies to treat chronic diseases such as diabetes, hemophilia, and thyroid disease. The company is headquartered in Canada and operates within the biotechnology sector. Its core product is the Cell Pouch System, an implantable medical device designed to create a natural environment for the survival and function of therapeutic cells, which can produce necessary proteins or hormones that are deficient in patients.

How the Company Makes Money

Sernova primarily generates revenue through the development and potential commercialization of its Cell Pouch System and associated therapeutic cells. The company could earn income through licensing agreements, partnerships, and collaborations with other biotech or pharmaceutical companies interested in integrating Sernova's technology into their treatment pipelines. Additionally, Sernova may receive milestone payments and royalties from these partners as their therapeutics progress through clinical trials and toward market approval. The company may also benefit from research grants and government funding to support its innovation and development efforts.

Sernova Financial Statement Overview

Summary

Sernova is facing severe financial challenges with no revenue generation, mounting losses, and negative equity. The company's financial health is concerning, suggesting a high-risk profile without significant operational or strategic changes.

Income Statement

The company reports zero revenue with consistently increasing net losses over the years, indicating significant operational challenges. Gross profit and EBITDA are also negative, reflecting an unprofitable core business.

Balance Sheet

The company has negative stockholders' equity in the latest period, indicating financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and total liabilities exceed total assets, highlighting significant leverage and risk.

Cash Flow

Operating cash flows are consistently negative, showing reliance on external financing for operations. Free cash flow is also negative, with recent financing inflows not enough to cover operational cash burn. This signals potential liquidity issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-265.58K	0.00	-445.55K	-440.00K	-267.20K	-225.23K
	EBIT
-22.40M	-31.84M	-41.13M	-24.18M	-6.87M	-5.22M
	EBITDA
-26.90M	-31.25M	-40.19M	-24.54M	-6.60M	-5.56M
	Net Income Common Stockholders
-28.14M	-32.19M	-39.00M	-24.54M	-7.02M	-5.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.21M	6.01M	19.81M	49.78M	27.87M	3.95M
	Total Assets
3.08M	7.53M	22.11M	52.48M	29.82M	5.73M
	Total Debt
546.47K	569.94K	136.12K	275.98K	393.35K	702.61K
	Net Debt
-661.10K	-5.44M	-8.59M	-3.50M	-27.48M	-3.25M
	Total Liabilities
21.01M	20.48M	9.59M	4.88M	1.75M	1.58M
	Stockholders Equity
-17.93M	-12.96M	12.51M	47.61M	28.07M	4.14M
Cash Flow		Free Cash Flow
-19.47M	-18.90M	-30.44M	-14.75M	-6.86M	-4.94M
	Operating Cash Flow
-19.47M	-18.90M	-30.34M	-14.42M	-6.84M	-3.94M
	Investing Cash Flow
9.04M	11.12M	34.78M	-46.34M	-228.78K	994.37K
	Financing Cash Flow
5.13M	5.07M	503.46K	36.66M	31.00M	5.10M

Sernova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 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 TSE:SVA, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.19, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 65.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SVA.

Sernova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%
ZEN	43 Neutral	$159.60M	―	-54.98%	―	92.38%	12.79%
SVA	29 Underperform	C$65.70M	―	248.46%	―	―	32.71%

Sernova Corporate Events

Sernova’s Innovative Diabetes Treatment to be Featured at International Conference

Sernova Biotherapeutics announced that their Cell Pouch Bio-hybrid Organ, aimed at providing a functional cure for type 1 diabetes, will be featured at the 2025 Cell & Gene Meeting on the Med in Rome. This highlights the company’s collaboration with Evotec and the scientific community’s interest in their innovative approach, potentially impacting the treatment landscape for chronic diseases like diabetes.

Spark’s Take on TSE:SVA Stock

According to Spark, TipRanks’ AI Analyst, TSE:SVA is a Underperform.

Sernova faces significant financial risks with no revenue and ongoing losses. While technical indicators suggest bearish trends, recent corporate developments in clinical trials and leadership changes could offer some longer-term potential. However, the current financial distress overshadows these prospects, making the stock very high-risk.

To see Spark’s full report on TSE:SVA stock, click here.

Sernova Advances Clinical Trial for Diabetes Treatment with Promising Results

Sernova Biotherapeutics has announced a positive update on its Phase 1/2 clinical trial for the Cell Pouch Bio-hybrid Organ aimed at treating type 1 diabetes. The Data and Safety Management Board has approved the enrollment of the final patient in Cohort B, and Sernova is preparing to advance to Cohort C in the second half of 2025. The trial’s primary endpoint is to demonstrate the safety and tolerability of islet transplantation into the Cell Pouch. The ongoing trial has shown promising results, including islet cell survival and insulin independence in patients, with no evidence of detrimental fibrosis. Sernova plans to collaborate with Evotec to launch a T1D trial using induced pluripotent stem cell islet-like clusters following the conclusion of Cohort C.

Sernova Biotherapeutics Strengthens Leadership with New Chief Development Officer

Sernova Biotherapeutics has appointed Dr. Pericles Calias as Chief Development Officer and Head of R&D to enhance its operational depth and expertise in cell therapy. Dr. Calias brings extensive experience in drug product development and regulatory approvals, which is expected to accelerate the advancement of Sernova’s Cell Pouch Bio-hybrid Organ as a functional cure for T1D, potentially transforming treatment paradigms and benefiting patients with chronic diseases.

Sernova Biotherapeutics Secures FDA Clearance for Thyroid Cell Therapy Trial

Sernova Biotherapeutics has received FDA clearance for its Investigational New Drug application to evaluate the Cell Pouch bio-hybrid organ with auto-transplanted thyroid cells in patients undergoing thyroid surgery. This development marks a significant step forward in Sernova’s efforts to provide a long-term solution for hypothyroidism without the need for hormone replacement or immune suppression. The clearance allows Sernova to expand its clinical trials and strengthen its position in the regenerative medicine field.

Sernova Submits IND for Cell Pouch Hybrid Organ in Hypothyroidism Treatment

Sernova Biotherapeutics has submitted an Investigational New Drug application to the FDA for its Cell Pouch bio-hybrid organ combined with autograft thyroid cells, targeting patients with hypothyroidism following thyroidectomy. This innovative approach aims to provide a long-term solution for restoring natural thyroid function without immune suppression therapy, potentially transforming treatment for endocrine disorders. Preclinical trials have shown promising results, and pending FDA clearance, Sernova plans to initiate human trials to assess safety and efficacy.

Sernova Biotherapeutics Appoints New Chair and Rebrands

Sernova Biotherapeutics has appointed Ross Haghighat as Chair of the Board, leveraging his extensive experience in biotechnology and life sciences to guide the company’s strategic growth and innovation. In addition, the company has changed its name from Sernova Corp. to Sernova Biotherapeutics Inc., reflecting its focus on biotherapeutics, and has moved its corporate jurisdiction to British Columbia to align with its strategic objectives.