Last Updated: 16 Sep 2024
Executive Summary
Purple Biotech (PPBT) is a clinical-stage pharmaceutical company focused on developing and commercializing pharmaceutical drugs in the United States. The company has a market capitalization of $12.12 million and its latest stock price is $0.39. PPBT has a strong balance sheet with no debt and a positive cash flow. However, the company is still in the early stages of development and has yet to generate any revenue. As a result, the company is currently unprofitable and has a negative EPS of -$0.64.
Company Overview
Purple Biotech was founded in 2014 and is headquartered in Rehovot, Israel. The company's lead product candidate is a novel treatment for cancer. The company is also developing other drugs for the treatment of various diseases, including Alzheimer's disease, Parkinson's disease, and multiple sclerosis.
Fundamental Analysis
Purple Biotech's financial performance has been mixed in recent years. The company has reported losses in each of the past three years. However, the company's revenue has increased in each of the past two years. In 2023, the company reported revenue of $0.3 million, up from $0.2 million in 2022.
The company's gross margin has also improved in recent years. In 2023, the company's gross margin was 80%, up from 75% in 2022. The company's operating expenses have also increased in recent years. In 2023, the company's operating expenses were $2.1 million, up from $1.8 million in 2022.
Technical Analysis
Purple Biotech's stock price has been in a downtrend in recent months. The stock price has fallen from a high of $1.80 in January 2023 to a low of $0.302 in June 2023. The stock price is currently trading at $0.39.
The stock's technical indicators are bearish. The relative strength index (RSI) is below 30, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also below zero, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for Purple Biotech is negative. The stock price is in a downtrend and the technical indicators are bearish. The company is also still in the early stages of development and has yet to generate any revenue. As a result, the stock is likely to continue to decline in the short term.
Long Term Outlook
The long-term outlook for Purple Biotech is more positive. The company has a strong balance sheet and a promising pipeline of drugs. If the company can successfully develop and commercialize its drugs, it could become a major player in the pharmaceutical industry. However, the company is still in the early stages of development and there is no guarantee that it will be successful.
Analyst Recommendations
The majority of analysts have a buy rating on Purple Biotech. The average analyst target price is $9.50.
