Investment Thesis
Liminatus Pharma exhibits critical financial distress with negative stockholders equity of -9.8M, negative operating cash flow of -10.0M, and only 337.7K in cash against 10.3M in liabilities. At current burn rate, the company has approximately 2 weeks of cash runway, creating imminent bankruptcy risk regardless of pipeline potential.
Strengths
- Pre-revenue biotech stage is typical for drug development companies
- Cash position of 337.7K provides minimal near-term operating flexibility
- Sector (biological products) represents growth market if company survives
Risks
- Negative stockholders equity of -9.8M indicates technical insolvency
- Critically low current ratio of 0.05x - severe liquidity crisis with only $0.05 in current assets per $1 of current liabilities
- Unsustainable cash burn of -10.0M annually with only 2 weeks of cash remaining at current burn rate
- No revenue generation and -10.2M net loss with deteriorating EPS
- Liabilities (10.3M) exceed assets (512.8K) by 20x, indicating inability to meet obligations
Key Metrics to Watch
- Cash position and runway - critical monitoring given 2-week burn timeline
- Debt restructuring or bankruptcy proceedings announcements
- Dilutive financing activity or capital raise announcements
Financial Metrics
Revenue
N/A
Net Income
-10.2M
EPS (Diluted)
$-0.43
Free Cash Flow
-10.0M
Total Assets
512.8K
Cash
337.7K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-1,990.4%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.05x
Quick Ratio
0.05x
Debt/Equity
N/A
Debt/Assets
2,014.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-12T15:12:18.683413 |
Data as of: 2025-12-31 |
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