Akari Therapeutics Plc (AKTX) Stock Analysis
Akari Therapeutics Plc
▾ What's in the 36/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
How to read AKTX (pre-profit growth)
This company is reinvesting instead of generating profit, so a standard DCF cannot price it. The useful question is whether the growth the market is paying for is achievable — and whether the company can fund itself until then.
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Reverse-DCF — the growth the price demands ↓
It shows exactly how fast the business must grow to justify today's price. Compare that to what comparable companies have actually achieved.
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Cash runway ↓
Can it reach profitability before it has to raise money and dilute shareholders?
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Interactive calculator ↓
Set your own growth + margin assumptions and see what the business would be worth if you are right.
Standard DCF doesn't fit AKTX well — but that's expected for this kind of business. The Rule of 40 (Pre-Profit Growth) Lens below uses the metrics actually used by analysts who value pharmaceuticals. Reverse DCF + Football Field also work as cross-checks.
How to read a company this small
This is a clinical-stage biotech with little or no revenue. Standard DCF requires future cash flows to discount — there's nothing to discount yet. The value is entirely in the drug pipeline and the probability that it works.
- Drug pipeline — phase of each candidate (Phase I → II → III → FDA approval); each phase has historical success probabilities
- Total Addressable Market (TAM) of the lead indication — bigger market = bigger payoff if approved
- Cash runway — months of cash left at current burn rate before they need to raise more (and dilute shareholders)
- Strategic partnerships — Big Pharma collaborations validate the science and bring milestone payments
- Patent / exclusivity timeline — how long until generics if approved
- Insider holdings + management track record — biotech execs with prior wins are a real signal
P/E, P/B, EV/Sales, ROE — meaningless when there's no revenue or earnings. DCF outputs are nonsense.
ClinicalTrials.gov for trial status. The 10-K's "Pipeline" section. Recent press releases on Phase II/III readouts. Conferences like JPM Healthcare or ASCO.
Classified as Clinical-Stage Biotech (confidence 85%). Disagree? An admin can override via the post edit screen.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
The Z-score needs working capital, retained earnings, EBIT, sales and total assets from the latest balance sheet, and at least one of those isn't reported in machine-readable form here — common for foreign private issuers. We leave it blank rather than compute a distress verdict from an estimated input. It doesn't affect the reported figures in the financial tables below.
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✗ Positive net incomeNet income -$17.3M in the latest year.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
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✗ Positive operating cash flowOperating cash flow -$10.6M (was -$12.6M the prior year).Why this matters: Profit can be an accounting figure; cash from running the business is harder to fake. Negative operating cash flow means the core business consumes cash and must be funded externally.
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✓ Cash flow backs up reported profitOperating cash flow -$10.6M vs net income -$17.3M.
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✓ Return on assets improvingReturn on assets -36.1% vs -39.1% a year ago.
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✓ Debt load (vs assets)Long-term debt is 0.0% of assets vs 0.0% a year ago ($0.0M now).
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✓ Short-term liquidity (current ratio)Current ratio 0.44x vs 0.15x a year ago — below 1.0, a caution flag.
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✗ Share count (dilution)Share count rose 181.8% (23,888.0M → 67,328.1M year-over-year).Why this matters: Issuing lots of new shares splits the pie into more pieces, shrinking your slice. Stable or falling share count protects existing owners.
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· Pricing power (gross margin) (n/a — data not reported; not scored)
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· Sales per asset (asset turnover) (n/a — data not reported; not scored)
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Akari Therapeutics Plc because the company has negative net income and operating cash flow, indicating it is not yet profitable and burns cash. Valuing it would require projecting a clear path to profitability and sustained positive cash flows, which is highly speculative at this stage. Investors are likely betting on the success of its drug pipeline and future regulatory approvals. The biggest risk to our assumptions is that the company's current ratio is 0.44, indicating current liabilities exceed liquid assets, which could lead to liquidity issues.
As of 22 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Results from ongoing clinical trials
- Regulatory updates and approvals
- New financing rounds or partnerships
The trend, in plain numbers (2024 → 2025)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Free cash flow is negative at -$13.5M — the cash burn narrowed vs last year.
- Still unprofitable at -$17.3M — loss narrowing.
Nothing clearly worsening year-over-year.
Management & Leadership
Akari Therapeutics Plc is led by CEO Rachelle Jacques, who has been with the company since 2021. The company focuses on developing treatments for inflammatory diseases.
What They Make
Akari Therapeutics Plc develops novel therapies for rare and orphan inflammatory diseases. The company's primary payers would be healthcare systems, insurance providers, and potentially patients directly, following successful drug development and commercialization.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market is pricing Akari Therapeutics based on expectations for its drug pipeline and potential future regulatory approvals, rather than current cash flow, as evidenced by its negative operating cash flow. The market may be assigning value to the potential for a successful drug launch, which is not in the model, or a strategic partnership that could provide significant funding and validation for its pipeline.
Business Model & Valuation
How They Make Money
The company funds itself primarily through equity raises, given its negative operating cash flow, and does not currently pay dividends or engage in share buybacks.
Growth / Revenue DCF
Negative free cash flow: revenue/margin growth model used - standard FCF DCF is unreliable for companies still scaling.
Show advanced inputs
| RevenueGrowth | 15.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
The company has negative net income and operating cash flow in the latest period, with no profitable years out of the last five.
Geography & Markets
Akari Therapeutics Plc is headquartered in the United Kingdom, with operations and clinical trials likely spanning multiple international regions, though specific geographic revenue mix is not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)38.7NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (6 notes — click to expand/collapse)
Guardrail Notes (6)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- INVARIANT: weighted IV is non-positive. Model may not be appropriate.
- Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
- Implausible market cap / OCF ratio (75382x). Cash flow magnitude may be incorrect.
- VALUATION HELD (UNIT_MISMATCH): per-share values suppressed due to a units/scaling inconsistency in the financial data.
- Extreme valuation gap (P/IV null): result may be dominated by model assumptions, share count issues, or sector-specific dynamics. Treat as low confidence.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Akari Therapeutics Plc's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | -17.3M | — |
| 2024 | — | -19.8M | — |
| 2023 | — | -10.0M | — |
| 2022 | — | -17.7M | — |
| 2021 | — | -17.4M | — |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -10.6M | — | 2.9M | -13.5M |
| 2024 | -12.6M | — | 2.2M | -14.8M |
| 2023 | -16.4M | — | 1.2M | -17.6M |
| 2022 | -21.5M | — | 735,000 | -22.2M |
| 2021 | -18.8M | — | 314,650 | -19.2M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: -10.6M − — − 2.9M (stock-based comp) = -13.5M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 47.9M |
| Total Liabilities | 19.6M |
| Equity | 28.3M |