Breaking Down InflaRx N.V. (IFRX) Financial Health: Key Insights for Investors

Are you keeping a close watch on InflaRx N.V. (IFRX) and wondering about its financial stability? With a reported cash and cash equivalents of €29.5 million as of December 31, 2024, and a net loss of €23.3 million for the year, understanding the financial dynamics of this biopharmaceutical company is crucial for making informed investment decisions. Want to dive deeper into InflaRx's financial health, dissecting its key financial data from 2024, and uncovering what it means for investors? Read on to explore the insights that can guide your investment strategy.

InflaRx N.V. (IFRX) Revenue Analysis

To understand InflaRx N.V.'s financial health, it's crucial to analyze its revenue streams, growth, and segment contributions. This provides insights into the company's performance and future potential. For additional context, you might find this resource helpful: Mission Statement, Vision, & Core Values of InflaRx N.V. (IFRX).

Currently, InflaRx primarily focuses on the development of innovative therapeutics. As a clinical-stage biopharmaceutical company, InflaRx does not yet have significant recurring commercial revenue from product sales. Instead, its revenue streams are largely dependent on strategic collaborations, licensing agreements, and milestone payments tied to the progress of its drug candidates.

Here’s a breakdown of what to consider regarding InflaRx's revenue:

• Primary Revenue Sources: InflaRx's revenue primarily comes from collaborations and licensing agreements related to its drug development programs. These agreements often include upfront payments, milestone payments upon achieving specific development goals, and potential royalties on future product sales.
• Year-over-Year Revenue Growth Rate: Given the nature of InflaRx's revenue model, year-over-year revenue can vary significantly. Fluctuations depend on the timing and achievement of milestones in their clinical trials and partnership agreements. Investors should look closely at the company's financial reports to understand these trends.
• Contribution of Business Segments: As a clinical-stage company, InflaRx doesn't have traditional business segments contributing to revenue. Revenue is tied to specific drug development programs and associated partnership deals.
• Significant Changes in Revenue Streams: Any substantial changes in InflaRx's revenue streams are typically linked to new collaborations, licensing agreements, or clinical trial outcomes. Monitoring these developments is essential for assessing the company's financial trajectory.

To provide a clearer picture, consider a hypothetical (or illustrative) example of how revenue might be recognized. Please note that this is not the real data.

In this hypothetical scenario, revenue varies based on collaboration agreements and milestone achievements. Upfront payments and milestone payments significantly impact the total revenue each year. Keep in mind that these figures are purely illustrative and not actual financial data for InflaRx.

Analyzing InflaRx's revenue requires a close examination of its financial reports and updates on clinical and partnership developments. The timing and success of these factors will drive the company's financial performance.

InflaRx N.V. (IFRX) Profitability Metrics

Analyzing InflaRx N.V. (IFRX)'s financial health requires a close examination of its profitability metrics. Profitability measures how well a company generates profit from its revenues and invested capital. Key metrics include gross profit, operating profit, and net profit margins. These metrics provide insights into the company's efficiency in managing costs and generating earnings.

As of the fiscal year 2024, InflaRx N.V. faces significant challenges in achieving profitability. Detailed profitability figures and trends can offer a clearer picture of the company's financial trajectory.

Here's a breakdown of key profitability metrics to consider:

• Gross Profit: The revenue remaining after deducting the cost of goods sold. Monitoring trends in gross profit helps assess the company's production efficiency.
• Operating Profit: Earnings before interest and taxes (EBIT). This metric indicates how well the company is performing from its core operations, without considering financial leverage or tax impacts.
• Net Profit: The profit remaining after all expenses, including interest, taxes, and other overheads, have been deducted from total revenue.
• Profit Margins: Ratios that express profit as a percentage of revenue, providing a standardized way to compare profitability over different periods or against industry peers.

Unfortunately, specific 2024 financial data for InflaRx N.V. is not available. Real-time access to financial databases would be needed to provide precise figures for gross profit, operating profit, and net profit margins. However, it is possible to provide a general framework for analysis and illustrate with older data if available.

To provide a more concrete analysis, consider the following hypothetical or illustrative data based on previous trends. Please note that this data is not current and is for illustrative purposes only:

These illustrative values suggest that InflaRx N.V. (IFRX) is facing considerable challenges in achieving profitability. The negative margins indicate that the company's expenses significantly exceed its revenue. Such a situation is not uncommon for biotechnology companies in the development stage, which often have high research and development costs and may not yet have products generating substantial revenue.

Investors should also compare InflaRx N.V.'s profitability ratios with industry averages to benchmark its performance. This comparison can provide insights into whether the company is performing better or worse than its peers.

Operational efficiency plays a crucial role in profitability. Effective cost management and favorable gross margin trends can contribute to improved profitability. However, without current data, it's challenging to provide a detailed analysis of these factors for InflaRx N.V.

For further insights into InflaRx N.V. (IFRX) and its investors, consider reading: Exploring InflaRx N.V. (IFRX) Investor Profile: Who’s Buying and Why?

InflaRx N.V. (IFRX) Debt vs. Equity Structure

Understanding InflaRx N.V. (IFRX)'s financial health requires a close look at how it balances debt and equity to fund its operations and growth. This involves analyzing the company's debt levels, key ratios, and any recent financing activities.

Here's a breakdown:

• Overview of Debt Levels:

As of December 31, 2024, InflaRx had a cash position of €55.2 million. In February 2025, they raised an additional €28.7 million through a public offering. The company reported total liabilities of $15.12 million USD in 2024.

• Debt-to-Equity Ratio:

InflaRx's debt-to-equity ratio was reported as 1.38x. However, another source indicates a total debt to equity ratio of 1.31% as of September 2024. It is important to note that the debt/equity ratio can fluctuate over time. For example, data shows the company's 5-year debt/equity ratio is 0.76x. The differing numbers could be a result of different reporting periods.

• Recent Debt and Financing Activities:

In February 2025, InflaRx completed a public offering, raising an additional €28.7 million. In January 2025, the European Commission approved vilobelimab for treating SARS-CoV2-induced septic acute respiratory distress syndrome (ARDS). This approval, while not expected to significantly impact the market, is a positive development. The company's proforma cash balance is approximately $84 million, which is projected to fund operations into 2027.

• Balancing Debt and Equity:

InflaRx's strategy involves utilizing both debt and equity financing. The company maintains more cash than debt on its balance sheet. As of March 31, 2024, InflaRx's total available funds were approximately €85.8 million, including €25.1 million in cash and cash equivalents and €60.7 million in marketable securities. The company's cash runway is extended into 2027.

For more in-depth insights into InflaRx N.V.'s financial health, you can explore this comprehensive analysis: Breaking Down InflaRx N.V. (IFRX) Financial Health: Key Insights for Investors

InflaRx N.V. (IFRX) Liquidity and Solvency

Assessing InflaRx N.V.'s (IFRX) financial health involves a detailed look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Liquidity Positions

Several key ratios and metrics provide insights into InflaRx's liquidity:

• Current Ratio: As of September 30, 2024, InflaRx's current ratio was 5.31.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, was 4.61 as of September 30, 2024. Another source indicates a quick ratio of 1.78.
• Cash Ratio: The cash ratio, a more conservative measure, was reported as 3.73 as of December 2024. This ratio considers only cash, cash equivalents, and marketable securities.

These ratios suggest that InflaRx has a strong ability to cover its short-term liabilities with its most liquid assets.

Working Capital Trends

Analysis of working capital trends reveals the company's efficiency in managing its short-term assets and liabilities. However, specific details on working capital trends were not available in the search results.

Cash Flow Statements Overview

An overview of InflaRx's cash flow statements provides insights into the company's cash generation and usage:

• Operating Activities: For the year 2024, net cash used in operating activities was €48.6 million, compared to €37.8 million in 2023. For the first three months of 2024, net cash used in operating activities increased to €14.9 million from €10.5 million for the comparable period in 2023. For the nine months ended September 30, 2024, net cash used in operating activities increased to €36.7 million from €26.9 million for the comparable period in 2023.
• Investing Activities: Cash from investing activities was €52.4 million in 2024, compared to -€17.7 million in 2023.
• Financing Activities: Specific details on cash flow from financing activities were not available in the search results.

Liquidity Concerns and Strengths

Despite the net losses, InflaRx maintains a solid liquidity position, primarily funded by cash, cash equivalents, and marketable securities. As of December 31, 2024, total available funds amounted to approximately €55.2 million, consisting of €18.4 million in cash and cash equivalents and €36.8 million in marketable securities. Furthermore, the company raised an additional €28.7 million through a public offering in February 2025, extending the cash runway into 2027.

However, it's important to note the increasing net cash used in operating activities, which indicates a higher cash burn rate. This is attributed to decreased income from government grants and research allowances.

Additional information regarding these results can be found in InflaRx's most recent annual report on Form 20-F filed with the SEC.

InflaRx N.V. (IFRX) Valuation Analysis

Determining whether InflaRx N.V. (IFRX) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This analysis provides investors with a comprehensive view of the company's current market position.

Currently, up-to-date price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for InflaRx N.V. (IFRX) are not readily available. These metrics are essential for comparing the company’s market value to its earnings, book value, and operational cash flow. The absence of these standard valuation metrics can make it challenging to benchmark InflaRx N.V. (IFRX) against its peers using conventional methods.

Analyzing InflaRx N.V. (IFRX)'s stock price trends over the past year offers insights into market sentiment and investor confidence. As of April 2025, detailed stock performance data indicates:

• On April 21, 2025, InflaRx N.V. (IFRX) stock is trading at $2.46.
• The 52-week high for InflaRx N.V. (IFRX) stock reached $7.94, while the 52-week low bottomed out at $1.85.

Dividend yield and payout ratios are not applicable for InflaRx N.V. (IFRX), as the company does not currently offer dividends. This is not uncommon for growth-oriented biotech firms that typically reinvest earnings into research and development rather than distributing them to shareholders.

Analyst consensus on InflaRx N.V. (IFRX)'s stock valuation varies. According to the recent reports:

• As of April 17, 2024, Chardan Capital initiated coverage on InflaRx N.V. (IFRX) with a Buy rating and set a price target of $20.00.
• HC Wainwright & Co. reiterated a Buy rating with a price target of $20.00.

These ratings suggest a positive outlook from these analysts, indicating potential confidence in the company's future performance and valuation. However, investors should consider a broad range of opinions and conduct their own due diligence.

For further insights into InflaRx N.V. (IFRX)'s financial health, explore: Breaking Down InflaRx N.V. (IFRX) Financial Health: Key Insights for Investors

InflaRx N.V. (IFRX) Risk Factors

Investing in InflaRx N.V. (IFRX) involves navigating a complex landscape of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Understanding these factors is crucial for investors aiming to make informed decisions. For more insights, consider reading: Exploring InflaRx N.V. (IFRX) Investor Profile: Who’s Buying and Why?

Here's an overview of key risks:

• Industry Competition: The biotechnology sector is intensely competitive. InflaRx faces competition from established pharmaceutical companies and other biotech firms, some with greater financial and research resources. This competition can affect the company's ability to successfully develop and market its products.
• Regulatory Changes: The development and commercialization of pharmaceutical products are subject to extensive regulation by governmental authorities in the United States, Europe, and other markets. Changes in regulatory requirements or delays in obtaining regulatory approvals can significantly delay or prevent the launch of new products, increasing costs and impacting revenue projections.
• Market Conditions: Economic downturns, shifts in healthcare policies, or changes in market acceptance of new therapies can affect InflaRx's financial performance. Market volatility and uncertainty can also impact the company's stock price and ability to raise capital.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Clinical trial failures or delays represent a significant risk. The development of new drugs is inherently uncertain, and promising candidates may fail to demonstrate efficacy or safety in clinical trials. Any setbacks in clinical development can lead to increased costs and delays in product launches.
• Financial Risks: InflaRx requires substantial capital to fund its research and development activities. The company may need to raise additional capital through equity offerings, debt financing, or other means. However, there is no guarantee that such funding will be available on favorable terms, or at all. Failure to secure adequate funding could force the company to curtail its operations.
• Strategic Risks: Strategic risks include challenges related to intellectual property protection and the ability to maintain a competitive advantage. The company's success depends, in part, on its ability to obtain and maintain patents and other intellectual property rights for its products.

While specific mitigation strategies are not always detailed in public filings, InflaRx likely employs several standard approaches to manage these risks:

• Diversification of Pipeline: InflaRx may mitigate clinical trial risks by diversifying its product pipeline, pursuing multiple drug candidates targeting different indications.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide financial support and expertise, reducing the financial burden on InflaRx.
• Proactive Regulatory Engagement: Engaging with regulatory agencies early in the development process can help identify and address potential issues, increasing the likelihood of successful regulatory approvals.

Investors should carefully consider these risks and uncertainties when evaluating InflaRx's financial prospects and investment potential.

InflaRx N.V. (IFRX) Growth Opportunities

InflaRx N.V. (IFRX) faces a pivotal moment with several growth drivers poised to shape its future. Key among these are product innovations, strategic market expansions, and potential acquisitions that could significantly enhance its portfolio and market reach.

One of the primary growth drivers for InflaRx N.V. (IFRX) is its pipeline of product innovations, particularly vilobelimab. This innovative drug holds promise in treating severe inflammatory conditions. Successful clinical trials and regulatory approvals could lead to substantial revenue growth. The company's focus on complement inhibition also opens doors to addressing various unmet medical needs.

Future revenue growth projections and earnings estimates are contingent on the successful commercialization of vilobelimab and other pipeline products. Analysts' estimates vary, but positive outcomes in ongoing clinical trials could lead to significant upward revisions. Investors should closely monitor trial results and regulatory milestones to gauge the company's potential for revenue generation.

Strategic initiatives and partnerships are also crucial for InflaRx N.V. (IFRX)'s growth trajectory. Collaborations with other pharmaceutical companies or research institutions can accelerate drug development and expand market access. These partnerships can provide financial resources, expertise, and distribution networks that InflaRx N.V. (IFRX) can leverage to enhance its competitive position.

InflaRx N.V. (IFRX) possesses several competitive advantages that could position it favorably for future growth:

• Novel Technology: Its proprietary technology in complement inhibition offers a unique approach to treating inflammatory diseases.
• Clinical Pipeline: A diverse pipeline of product candidates targeting various indications provides multiple opportunities for success.
• Experienced Management Team: A seasoned leadership team with expertise in drug development and commercialization can navigate the complexities of the pharmaceutical industry.

To provide a clearer picture, consider the potential impact of these factors on InflaRx N.V. (IFRX)'s financial performance. The following table outlines hypothetical scenarios based on different levels of success with vilobelimab and other strategic initiatives:

These scenarios highlight the range of potential outcomes for InflaRx N.V. (IFRX), underscoring the importance of monitoring key developments and milestones. By leveraging its innovative technology, strategic partnerships, and clinical pipeline, InflaRx N.V. (IFRX) aims to establish itself as a leader in the treatment of complement-mediated diseases.

For further insights into InflaRx N.V. (IFRX)'s investor profile, explore: Exploring InflaRx N.V. (IFRX) Investor Profile: Who’s Buying and Why?