PPBT Stock Risk & Deep Value Analysis
Purple Biotech Ltd
Healthcare • Biotechnology
DVR Score
out of 10
What You Need to Know About PPBT Stock
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We ran PPBT through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
PPBT Risk Analysis & Red Flags
What Could Go Wrong
The company's $6.4 million cash and short-term deposits as of March 31, 2026, while projected to last 'into 2027,' could be depleted faster than anticipated if R&D expenses accelerate or non-dilutive funding (e.g., partnerships for CM24/NT219) does not materialize, forcing significant dilutive equity financing earlier than planned, severely impacting shareholder value.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
High
Execution
High
Regulatory
High
Red Flags
- ⚠
No current product revenue, necessitating ongoing capital raises or partnerships to fund R&D.
- ⚠
Small cash position of $6.4 million for a clinical-stage biotech, despite the extended runway, indicates tight financial management and reliance on future capital infusions.
- ⚠
High dependence on successful clinical trials for its lead CAPTN-3 platform and existing Phase 2 assets, which are inherently high-risk, multi-year endeavors.
Upcoming Risk Events
- 📅
Delay in IND filing for CAPTN-3 beyond Q4 2026 or outright rejection by regulatory authorities, hindering clinical development and potentially necessitating early dilutive financing.
- 📅
Faster than anticipated cash burn, potentially depleting the $6.4 million cash balance before the projected 'into 2027' runway, leading to unplanned dilutive financing rounds.
When to Reconsider
- 🚪
IND for CAPTN-3 (IM1240/IM1305) is significantly delayed beyond Q4 2026 or rejected by regulatory authorities.
- 🚪
Cash and short-term deposits fall below $3.0 million for two consecutive quarters, indicating a critical need for immediate, potentially highly dilutive financing.
- 🚪
Adjusted operating loss increases by more than 50% for two consecutive quarters without a corresponding positive pipeline advancement.
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What Does Purple Biotech Ltd (PPBT) Do?
Market Cap
$18.58M
Sector
Healthcare
Industry
Biotechnology
Employees
9
Purple Biotech Ltd., a clinical-stage company, focuses on developing therapies to overcome tumor immune evasion and drug resistance for cancer patients in the United States. Its oncology pipeline includes CM24, a humanized monoclonal antibody that blocks the interactions of carcinoembryonic antigen related cell adhesion molecule 1 as a combination therapy with anti-PD-1 checkpoint inhibitors, which is in Phase 2 clinical trial for the treatment of pancreatic ductal adenocarcinoma; NT219, a small molecule that targets and inhibits insulin receptor substrate 1 and 2, and signal transducer and activator of transcription, which is in Phase 1/2 clinical trials for the treatment recurrent and/or metastatic squamous cell carcinoma of the head and neck cancer or colorectal adenocarcinoma; and IM1240, a multi-valent antibody designed to activate anti-tumoral immune response against 5T4-positive tumors, which is in preclinical stage. The company has collaboration agreement with Bristol Myers Squibb Company to evaluate the combination of CM24 with the PD-1 inhibitor nivolumab in addition to chemotherapy. The company was formerly known as Kitov Pharma Ltd and changed its name to Purple Biotech Ltd. in December 2020. The company was incorporated in 1968 and is headquartered in Rehovot, Israel.
Visit Purple Biotech Ltd WebsiteInvestment Thesis
If Purple Biotech successfully files its IND for the novel CAPTN-3 tri-specific antibody platform (IM1240 and IM1305) in Q4 2026 (supported by Q1 2026 progress), and subsequently secures a partnership deal for one or both of its Phase 2 assets (CM24 or NT219) by mid-2027 providing $5M-$20M in non-dilutive capital, then the company's valuation could re-rate from its current $0.02B market cap to $0.1B-$0.2B, representing a 5x-10x return, as these milestones validate its platform and significantly extend its runway without major dilution. This is bullish because the market currently prices the company at a deep discount reflecting its early stage and high clinical risk, not fully appreciating the potential value of its diversified oncology pipeline upon milestone achievement.
Is PPBT Stock Undervalued?
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PPBT Price Targets & Strategy
12-Month Target
$13.33
Bull Case
$28.80
Bear Case
$1.50
Valuation Basis
Successful IND filing for CAPTN-3 and a small licensing deal for a Phase 2 asset could drive market cap to $0.1B, implying ~$13.33/share (based on ~7.5M shares outstanding).
Entry Strategy
Dollar-cost average between $2.50-$3.50, seeking stability after Q1 earnings reaction. Consider accumulating on dips towards prior support levels.
Exit Strategy
Take initial profit at $10-$15 upon major clinical milestones (IND acceptance, positive Phase 1 data, or partnership announcement). Consider a stop loss at $1.50 if cash burn accelerates without progress.
Portfolio Allocation
8% for aggressive risk tolerance given the binary nature of biotech investments.
Price Targets & Strategy
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Is PPBT Financially Healthy?
Valuation
P/E Ratio
-1.60
Forward P/E
-0.97
PEG Ratio
-0.02
Price/Book
1.37
Profitability
Operating Margin
-430.20%
Net Margin
-2777.90%
Return on Equity
-98.51%
EPS
$-0.02
Balance Sheet
Current Ratio
1.27
Quick Ratio
1.25
Debt/Equity
0.03
Cash & Equivalents
$6.40M
Other
Beta (Volatility)
0.40
Does PPBT Have a Competitive Moat?
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⚪ None
Moat Trend
Expanding
Moat Sources
1 Identified
Currently very low. The development of a durable moat hinges entirely on the successful clinical development and robust patent protection of its novel platforms, which are years away from being established and validated in the market.
Moat Erosion Risks
- •Clinical trial failures for any of its key pipeline assets (CAPTN-3, CM24, NT219), invalidating proprietary technology.
- •Development of superior or similar competitive therapies by larger, well-funded pharmaceutical companies.
- •Inability to secure strong patent protection or successfully defend its intellectual property against challenges.
PPBT Competitive Moat Analysis
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PPBT Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (Limited public discussion due to small market capitalization and early-stage pipeline).
Institutional Sentiment
Neutral (No verified analyst upgrades/downgrades or specific institutional ownership data found in provided research).
Insider Activity (Form 4)
No verified Form 4 insider transactions were found in the provided research for the last 90 days.
Options Flow
Normal options activity (No specific unusual options activity or put/call ratio data found in provided research).
Earnings Intelligence
Next Earnings
2026-08-05 (Estimated for Q2 2026 results)
Surprise Probability
Medium
Historical Earnings Pattern
Q1 2026 results beat EPS consensus primarily due to finance income, suggesting potential for volatility based on non-operating items and R&D spend.
Key Metrics to Watch
Competitive Position
Top Competitor
Not explicitly named in research, but major oncology players (e.g., Bristol-Myers Squibb, Merck) or specialized biotechs in multi-specific antibodies are direct competitors.
Market Share Trend
Not applicable; pre-revenue with no current market share.
Valuation vs Peers
Trading at a deep discount relative to more advanced oncology biotechs due to its early stage and pre-revenue status, offering significant upside leverage upon clinical success.
Competitive Advantages
- •Proprietary CAPTN-3 tri-specific antibody platform for novel oncology targets (Intangible Assets/IP potential).
- •Focus on high-unmet-need oncology indications with significant market potential.
- •Diversified pipeline with both preclinical (CAPTN-3) and clinical (CM24, NT219) stage assets.
Market Intelligence
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What Could Drive PPBT Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 earnings report (estimated August 5, 2026): Focus on cash runway confirmation and updated CAPTN-3 progress.
- •Investigational New Drug (IND) application filing for CAPTN-3 platform (IM1240 or IM1305) in Q4 2026 (based on previous guidance), triggering progress towards first-in-human studies.
Medium-Term (6-18 months)
- •Partnership or licensing deal announcement for Phase 2 assets (CM24 or NT219) by mid-2027, potentially generating $5M-$20M upfront non-dilutive funding.
- •Initiation of first-in-human (Phase 1) trial for CAPTN-3 platform (IM1240 or IM1305) in early 2027, demonstrating successful IND clearance and clinical progress.
Long-Term (18+ months)
- •Positive preliminary data from CAPTN-3 Phase 1/1b trial in specific oncology indication by late 2027/early 2028, showing safety and early efficacy signals, potentially driving market cap beyond $0.5B.
- •Advancement of CM24 or NT219 into Phase 3 trials or market approval by a partner, triggering substantial milestone payments ($20M+).
Catalysts & Growth Drivers
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What's the Bull Case for PPBT?
- ✓
Successful IND filing for CAPTN-3 (IM1240/IM1305) announced in Q4 2026, marking transition to human trials.
- ✓
Partnership or licensing deal announcement for CM24 or NT219, with disclosed upfront payments of at least $5 million.
- ✓
Cash and short-term deposits balance remaining above $5 million for the next two quarters, indicating controlled burn.
Bull Case Analysis
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Competing with PPBT
See how Purple Biotech Ltd compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Purple Biotech Ltd PPBT | $18.6M | 7.0 | -1.6 | — | -2777.9% | — | |
Johnson & Johnson JNJ | $557.1B | 1.0 | 26.5 | — | 21.8% | 7.9% | Compare → |
Pfizer Inc PFE | $146.4B | 4.0 | 19.5 | $62.6B | 11.8% | 1.4% | Compare → |
UnitedHealth Group Inc UNH | $365.5B | 0.3 | 30.3 | $447.6B | 2.7% | 9.7% | Compare → |
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How Purple Biotech Ltd Makes Money
Purple Biotech is a clinical-stage biotechnology company focused on developing novel oncology immunotherapies to address tumor immune evasion and drug resistance. The company currently generates no revenue and primarily operates by raising capital through equity financing to fund its extensive research and development activities. This includes preclinical development of its proprietary CAPTN-3 tri-specific antibody platform (IM1240, IM1305) and advancing two assets (CM24, NT219) through Phase 2 clinical trials. Their long-term business model involves partnering with larger pharmaceutical companies for late-stage development and commercialization, or, less likely, independently bringing successful drugs to market, thereby generating revenue through milestone payments, licensing fees, and potentially royalties on drug sales.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Purple Biotech Ltd (PPBT)?
As of May 23, 2026, Purple Biotech Ltd has a DVR Score of 7.0 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Purple Biotech Ltd?
Purple Biotech Ltd's market capitalization is approximately $18.6M. The company operates in the Healthcare sector within the Biotechnology industry.
What ticker symbol does Purple Biotech Ltd use?
PPBT is the ticker symbol for Purple Biotech Ltd. The company trades on the NCM.
What is the risk level for PPBT stock?
Our analysis rates Purple Biotech Ltd's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of PPBT?
Purple Biotech Ltd currently has a price-to-earnings (P/E) ratio of -1.6. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is PPBT stock profitable?
Purple Biotech Ltd has a profit margin of -2777.9%. The company is currently unprofitable.
How often is the PPBT DVR analysis updated?
Our AI-powered analysis of Purple Biotech Ltd is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 23, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for PPBT (Purple Biotech Ltd) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.