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Adagene

ADAG
25
Biotechnology · Healthcare
Price
$4.02
-0.07 (-1.71%)
Market Cap
$151.3M
Exchange
NASDAQ
Winston Score
25
Winston is worried
Below-average fundamentals — multiple weak pillars.
Based on the IPO prospectus (annual filing). This score will refine automatically once the company reports its first quarters.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Weak
Stability
Good
Valuation
Data not available

Share count rising — dilution

+17.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 32.0M (2021) → 37.8M (2025)

Winston Score History

The full picture

Adagene is a Chinese biotechnology company that discovers and develops new cancer drugs. It focuses on antibody-based medicines, which are treatments designed to target cancer cells more precisely than traditional chemotherapy. The company uses its own proprietary technology platform, called SAFEbody, to create next-generation antibody therapies aimed at making cancer treatments safer and more effective.

Adagene makes money primarily through research partnerships and licensing deals with larger pharmaceutical companies, rather than selling approved drugs directly to patients. It is headquartered in Suzhou, China, and also has operations in the United States, but remains a small company with a market cap around $100 million. With a deeply negative operating margin, Adagene is still in the clinical-stage phase, spending heavily on research while generating little revenue — the key risk is whether its drug candidates can succeed in clinical trials and attract the partnerships needed to fund continued development.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$22M/ year

Declining (-23% vs prior year)

287.2% of revenue

16.0x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

28.3%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~2 years

$128M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$128M cash & investments at current burn rate

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Profit after running costs
Operating Margin
-279.5%
Losing money on operations — -279.5%
Return on the money invested
ROCE
-51.7%
Weak — -51.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
>+1,000%
Fast-growing sales (>+1,000% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
N/A
Data not available

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-204.3%
Burning cash (-204.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.17
Conservative — low debt load (0.17)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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