Eledon Pharmaceuticals (Eledon Pharmaceuticals) Financial Strength : 8 (As of Dec. 2023)

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What is Eledon Pharmaceuticals Financial Strength?

Eledon Pharmaceuticals has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Eledon Pharmaceuticals Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Eledon Pharmaceuticals has no long-term debt ⁽¹⁾. As of today, Eledon Pharmaceuticals's Altman Z-Score is 0.00.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Competitive Comparison of Eledon Pharmaceuticals's Financial Strength

For the Biotechnology subindustry, Eledon Pharmaceuticals's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Eledon Pharmaceuticals's Financial Strength Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Eledon Pharmaceuticals's Financial Strength distribution charts can be found below:

* The bar in red indicates where Eledon Pharmaceuticals's Financial Strength falls into.

Eledon Pharmaceuticals Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Eledon Pharmaceuticals's Interest Expense for the months ended in Dec. 2023 was $0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was $-10.34 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.00 Mil.

Eledon Pharmaceuticals's Interest Coverage for the quarter that ended in Dec. 2023 is

Eledon Pharmaceuticals had no long-term debt ⁽¹⁾.

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Eledon Pharmaceuticals Inc has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Eledon Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0.383	+	0)	/	0
	=	N/A

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Eledon Pharmaceuticals has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Eledon Pharmaceuticals (NAS:ELDN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Eledon Pharmaceuticals has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Eledon Pharmaceuticals Financial Strength Related Terms

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Eledon Pharmaceuticals (Eledon Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Eledon Pharmaceuticals Inc (NAS:ELDN) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

2TK:Germany

Address

19900 MacArthur Boulevard, Suite 550, Irvine, CA, USA, 92612

Website

https://www.eledon.com

Eledon Pharmaceuticals Inc is a clinical-stage biotechnology company. The firm is focused on transplantation and autoimmune diseases. It targets CD40L pathway to develop potential treatments for patients living with an autoimmune disease, patients requiring an organ or cell-based transplant, and for patients living with ALS. The company's lead compound in development is AT-1501 which is the next generation anti-CD40L antibody.

Executives

Allan Kirk	director	C/O ELEDON PHARMACEUTICALS, INC., 19900 MACARTHUR BLVD., SUITE 550, IRVINE CA 92612
Robinson James A. Jr.	director	852 WINTER STREET, WALTHAM MA 02451
Biotechnology Value Fund L P	other: See Explanation of Responses	44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104
Steven Perrin	director, officer: See Remarks	C/O ANELIXIS THERAPEUTICS, INC., 1500 DISTRICT AVENUE, BURLINGTON MA 01803
David-alexandre C Gros	director, officer: Chief Executive Officer	220 MARLBOROUGH STREET, #6, BOSTON MA 02116
Jan Hillson	director	C/O ELEDON PHARMACEUTICALS, INC., 19900 MACARTHUR BLVD., SUITE 550, IRVINE CA 92612
Paul Sean Little	officer: CHIEF FINANCIAL OFFICER	SIENTRA, INC., 420 SOUTH FAIRVIEW AVENUE, SUITE 200, SANTA BARBARA CA 93117
Bryan E. Smith	officer: See Remarks	C/O UROVANT SCIENCES, INC., 5281 CALIFORNIA AVENUE, SUITE 100, IRVINE CA 92617
June Lee	director	C/O MYOKARDIA, INC., 333 ALLERTON AVE, SOUTH SAN FRANCISCO CA 94080
Orbimed Israel Biofund Gp Limited Partnership	director, 10 percent owner	601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 1022-4629
Logos Global Management Lp	10 percent owner	1 LETTERMAN DRIVE, BLDG C, SUITE C3-350, SAN FRANCISCO CA 94129
Bvf Partners L P/il	10 percent owner	44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Mark N Lampert	10 percent owner	1 SANSOME ST, 30TH FL, SAN FRANCISCO CA 94104
Biotechnology Value Fund Ii Lp	other: See Explanation of Responses	44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104
Bvf Gp Holdings Llc	10 percent owner	44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104