Edesa Biotech Inc logo

Edesa Biotech Inc(EDSA)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$4.01
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for EDSA

09/25/2026: EDSA (1-star) is currently NOT-A-BUY. Pass it for now.

Edesa Biotech Inc is a clinical-stage biopharmaceutical company focused on developing therapies for inflammatory and immune-related conditions. Its main strengths include a targeted pipeline consisting of assets like EB05 and EB01, supported by a lean operating model that prioritizes research efficiency. The investment story centers on the potential for successful clinical outcomes to drive value through regulatory approval or strategic partnerships. However, the company faces significant risks including clinical failure, the need for continuous financing in a competitive biotech market, and heavy reliance on future success for revenue. It is best suited for growth-oriented investors who can tolerate high risk and monitor clinical milestones closely.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers high-risk, high-reward exposure to drug development but lacks established growth metrics.
Momentum investorMixed fitThis style is only appropriate during positive clinical data releases or major partnership announcements.
Value investorWeak fitThe lack of consistent earnings and revenue makes traditional value metrics difficult to apply.
Dividend investorWeak fitEdesa does not pay dividends and focuses all capital on research and development.
Low-risk investorWeak fitThe clinical-stage nature of the business inherently involves high volatility and risk of capital loss.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock price is highly sensitive to news regarding clinical trial milestones.
Valuation riskMedium / highValuations for pre-revenue biotech companies are speculative and subject to rapid adjustments.
Competition risk (Large Pharma)HighEdesa competes with well-capitalized firms that have dominant market positions.
Business qualityMediumAs a clinical-stage entity, the business is purely R&D-focused without the stability of commercial operations.
Dividend incomeLow / noneInvestors should not expect income from this equity.
Execution riskHighSuccess depends entirely on the company's ability to navigate complex clinical and regulatory hurdles.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -47.79%
Avg. Invested days 29
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
EDSA receives a 2-star rating, supported by solid analyst coverage. The rating is constrained by weak unit economics, soft quantitative characteristics, and weak price momentum.

Company Fundamentals

★★★★★
EDSA has moderate overall fundamentals (3 stars), with moderate financial health, soft growth momentum, and solid ownership. In FY2025 versus FY2024, growth and ownership metrics are mixed: negative earnings growth (-16.5%), soft cash generation (FCF margin 0.0%), slightly negative revenue growth (+0.0%).

Financial Health Rating

★★★★★
EDSA's financial health is supported by strong efficiency, including operating-expense and cost-of-revenue discipline (opex 0.0% of revenue). Profitability is weak (1 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
EDSA's growth profile is soft, with the least-weak measure being revenue growth at +0.0% FY2025 versus FY2024. By comparison, while earnings growth (-16.5%, negative) and free-cash-flow growth (-49.7%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 37.4% and approximately 74.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 13.50% supports management-shareholder alignment.

Top 5 Institutional Investors

Velan Capital Investment Management LP 6.12%
Rubric Capital Management LP 5.09%
Perceptive Advisors LLC 4.17%
Millennium Management LLC 4.16%
Jane Street Group LLC 0.86%

Unit Economics (Per $1K Revenue)

★★★★★
EDSA generates approximately $-0 of gross profit, $-0 of operating income, and $-0 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: -0.01% (Tax Credit)

Quantitative Style Profile

★★★★★
EDSA has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 38.85M USD
Price to earnings Ratio -
1Y Target Price 16.33
Price to earnings Ratio -
1Y Target Price 16.33
Volume (30-day avg) 73.8K shares
Beta 1.06
52 Weeks Range 0.72 - 20.32
Updated Date 09/25/2026
52 Weeks Range 0.72 - 20.32
Updated Date 09/25/2026
Dividends yield (FY) -
Basic EPS (TTM) -1.73

How Company Makes Money

Business areaWhat it includesRetail investor read
Drug DevelopmentClinical-stage research and development for EB05 and EB01.The company does not yet sell products and relies on funding to develop medicines.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 0.18
Enterprise Value 37.64M
Price to Sales(TTM) 130462.29
Enterprise Value 37.64M
Price to Sales(TTM) 130462.29
Enterprise Value to Revenue 140491.25
Enterprise Value to EBITDA -1.25
Shares Outstanding 9.64M
Shares Floating 7.19M
Shares Outstanding 9.64M
Shares Floating 7.19M
Percent Insiders 13.5
Percent Institutions 37.44

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Edesa Biotech Inc

Exchange NASDAQ
Headquarters Markham, ON, Canada
IPO Launch date 2015-11-05
CEO, Company Secretary & Director Dr. Pardeep Nijhawan FRCPC, M.D.
Sector Healthcare
Industry Biotechnology
Full time employees 17
Full time employees 17

Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, engages in the research and development, manufacture, and commercialization of pharmaceutical products for inflammatory and immune-related diseases. It develops EB05, a monoclonal antibody, which is in Phase 3 clinical study for the treatment of acute respiratory distress syndrome; and EB01, a topical vanishing cream containing non-steroidal anti-inflammatory compound that has completed Phase 3 clinical study to treat chronic allergic contact dermatitis. The company develops EB07, a monoclonal antibody, which is in a Phase 2 clinical study for the treatment of pulmonary fibrosis; and EB06, a human monoclonal antibody candidate that binds to chemokine ligand 10 (CXCL10) and inhibits the interaction of CXCL10 with its receptors, CXCR3A, and CXCR3B. It has a collaboration agreement with NovImmune SA to develop monoclonal antibodies targeting products containing toll-like receptor 4 and CXCL10 for therapeutic, prophylactic, and diagnostic applications in humans and animals; and Yissum Research Development Company for the development of products for therapeutic, prophylactic, and diagnostic uses in topical dermal and anorectal applications, as well as for the use in dermatologic and gastrointestinal conditions. The company was founded in 2015 and is headquartered in Markham, Canada.