EDSA Stock Forecast & Price Target

Edesa Biotech Inc. has demonstrated significant progress in its clinical trials, particularly with EB01, which showed notable improvements in skin health for patients with allergic contact dermatitis (ACD) in a Phase 2b trial involving 200 participants. The company's focus on developing safer alternatives to traditional treatments such as topical corticosteroids could enhance its marketability and broaden its consumer base. Furthermore, the potential for geographic expansion and the advancement of additional drug candidates like EB05 and EB07 presents opportunities for increased revenue generation and overall growth.

Edesa Biotech Inc. is projected to experience continued negative cash flows from operating activities through FY2026, as indicated in multiple forecasts. The company's operating cash flows were negative in FY2024, highlighting ongoing financial challenges. These persistent cash flow deficits raise concerns regarding the company's ability to sustain its operations and fund the development of its product pipeline.