Stock Analysis & Valuation Biophytis S.A. (ALBPS.PA)

• Previous Close: €0.06
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Biophytis S.A. (ALBPS.PA) is a Paris-based clinical-stage biotechnology company specializing in the development of therapeutics for age-related diseases. The company focuses on activating key biological resilience pathways to counteract degenerative processes, improving functional outcomes for patients. Its lead candidate, Sarconeos (BIO101), is an orally administered small molecule targeting neuromuscular diseases like sarcopenia and Duchenne muscular dystrophy (DMD), as well as severe COVID-19 respiratory failure. Additionally, Biophytis is developing Macuneos (BIO201) for retinal diseases such as dry age-related macular degeneration (AMD) and Stargardt disease. Founded in 2006, Biophytis collaborates with organizations like AFM-Telethon to advance its pipeline. With a market cap of approximately €3 million, the company operates in the high-risk, high-reward biotechnology sector, where innovation and clinical success are critical drivers of value.

Investment Summary

Biophytis S.A. presents a high-risk, high-reward investment opportunity due to its clinical-stage pipeline targeting unmet medical needs in age-related diseases. The company has no revenue and reported a net loss of €17 million in FY 2023, reflecting its heavy R&D focus. With €5.6 million in cash and €8.3 million in debt, liquidity remains a concern, necessitating potential capital raises. The low beta (0.255) suggests limited correlation with broader markets, but clinical trial outcomes will be the primary value driver. Investors should closely monitor progress in Sarconeos' Phase 2/3 trials for COVID-19 and neuromuscular applications, as positive data could significantly revalue the stock. However, the lack of commercialization experience and reliance on a single lead candidate heighten risk.

Competitive Analysis

Biophytis competes in the niche but growing market for age-related disease therapeutics, particularly in sarcopenia and rare retinal disorders. Its competitive edge lies in the novel mechanism of Sarconeos (BIO101), which targets biological resilience pathways—a differentiated approach compared to traditional symptom-management therapies. However, the company faces significant challenges, including limited financial resources compared to larger biotech peers and a reliance on external collaborations for development. The absence of commercial infrastructure also puts it at a disadvantage against established players with approved therapies in adjacent markets. Biophytis' focus on oral small molecules could offer cost and compliance advantages over biologic competitors, but clinical efficacy data will be critical to validate this potential. The company’s collaboration with AFM-Telethon provides credibility but does not mitigate the high risk of clinical failure inherent in its stage of development.

Major Competitors

• Sarepta Therapeutics (SRPT): Sarepta Therapeutics is a leader in DMD therapeutics, with approved exon-skipping drugs like Exondys 51. Its robust pipeline and commercial capabilities overshadow Biophytis' early-stage efforts in DMD. However, Sarepta's therapies are expensive biologics, whereas Biophytis' oral small molecule could offer a cost advantage if proven effective.
• Biogen (BIIB): Biogen has a strong presence in neuromuscular and neurodegenerative diseases, including spinal muscular atrophy (SMA) therapy Spinraza. Its financial strength and global reach dwarf Biophytis, but Biogen has faced pipeline setbacks, creating opportunities for smaller players with novel mechanisms like Biophytis.
• Regenxbio (RGNX): Regenxbio focuses on gene therapy for rare diseases, including AMD. Its AAV-based delivery platform is more advanced than Biophytis' small-molecule approach for retinal diseases, but also carries higher development risks and costs. Biophytis' oral Macuneos could appeal to patients averse to invasive treatments.
• Avenue Therapeutics (ATXI): Like Biophytis, Avenue is a micro-cap biotech with a focus on niche neuromuscular indications. Its lead candidate, AJ201 for spinal and bulbar muscular atrophy, is similarly early-stage. Both companies face funding challenges, but Avenue has a slightly more diversified pipeline.