Applied Biosciences Corp. (APPB) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Applied Biosciences Corp. (APPB) Healthcare & Pipeline Overview

Applied Biosciences Corp. focuses on synthetic cannabinoid therapeutics and THC-free CBD products, targeting the endocannabinoid system. Operating in the specialty and generic drug manufacturing sector, the company provides testing and analytics services, distinguishing itself through a vertically integrated approach from development to consumer products, despite its current financial challenges.

What Is the Investment Thesis for APPB?

Applied Biosciences Corp. presents a high-risk, high-reward investment opportunity within the cannabinoid therapeutics and consumer CBD market. The company's focus on synthetic cannabinoids offers potential for novel treatments targeting the endocannabinoid system. However, its negative profit margin of -865.3% and gross margin of -358.5% indicate significant financial challenges. Future growth hinges on successful drug development, regulatory approvals, and market acceptance of its CBD products. The company's high beta of 732.83 suggests extreme volatility, making it suitable only for investors with a high-risk tolerance. Investment is contingent on the company securing additional funding and demonstrating progress in its clinical programs.

Based on FMP financials and quantitative analysis

APPB Key Highlights

• Focus on synthetic cannabinoid therapeutics targeting the endocannabinoid system.
• Offers a range of THC-free CBD products for consumer use.
• Provides testing and analytics services to customers in the cannabinoid market.
• Incorporated in 2014, indicating a relatively young company in the biopharmaceutical sector.
• Based in Beverly Hills, California, a hub for the health and wellness industry.

Who Are APPB's Competitors?

APPB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are APPB's Key Strengths?

• Focus on synthetic cannabinoids offers potential for novel therapeutics.
• Offers a range of THC-free CBD products for consumer use.
• Provides testing and analytics services, creating additional revenue streams.
• Vertically integrated business model allows for greater control over the supply chain.

What Are APPB's Weaknesses?

• Negative profit and gross margins indicate financial instability.
• High beta suggests extreme stock price volatility.
• Limited information available regarding specific products in development.
• Small number of employees (25) may limit operational capacity.

What Could Drive APPB Stock Higher?

• Potential regulatory approvals for synthetic cannabinoid therapeutics.
• Expansion of the company's THC-free CBD product line.
• Increasing consumer awareness and acceptance of CBD products.

What Are the Key Risks for APPB?

• Financial-distress signal — its Altman Z-Score of -6.43 sits in the distress zone (elevated bankruptcy risk).
• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Stringent regulatory requirements for cannabinoid-based products.
• Competition from larger, more established companies.
• Adverse effects or safety concerns associated with cannabinoid products.
• The company's financial instability, as indicated by negative profit and gross margins.
• Dependence on key personnel and the ability to attract and retain talent.

What Are the Growth Opportunities for APPB?

• Expansion of Synthetic Cannabinoid Therapeutics: Applied Biosciences has the opportunity to develop and commercialize novel synthetic cannabinoid therapeutics targeting specific diseases. The global pharmaceutical market is multi-billion dollar, offering significant revenue potential for successful drug candidates. This opportunity depends on positive clinical trial results and regulatory approvals, with a timeline of several years for drug development and commercialization.
• Growth in the CBD Consumer Market: The market for CBD consumer products is experiencing rapid growth, driven by increasing consumer awareness and acceptance. Applied Biosciences can capitalize on this trend by expanding its range of THC-free CBD products and distribution channels. Success depends on effective marketing, product innovation, and compliance with evolving regulations.
• Strategic Partnerships and Collaborations: Applied Biosciences can accelerate its growth by forming strategic partnerships with other companies in the pharmaceutical, biotechnology, and consumer product sectors. Collaborations can provide access to new technologies, markets, and funding sources. This strategy can reduce risk and accelerate the development and commercialization of its products. The timeline for realizing this opportunity depends on identifying suitable partners and negotiating mutually beneficial agreements.
• Development of Novel Drug Delivery Systems: Applied Biosciences can enhance the efficacy and patient experience of its cannabinoid therapeutics by developing novel drug delivery systems. This can include formulations for improved bioavailability, targeted delivery to specific tissues, and convenient routes of administration. The market for advanced drug delivery technologies is growing, driven by the demand for more effective and patient-friendly therapies. Success depends on innovation in formulation science and engineering.
• Expansion of Testing and Analytics Services: Applied Biosciences can leverage its testing and analytics capabilities to serve the growing demand for quality control and regulatory compliance in the cannabinoid industry. This includes providing testing services for other companies' products, as well as developing analytical tools for research and development. The market for cannabis testing services is expanding rapidly, driven by increasing regulation and consumer demand for product safety and transparency. Success depends on maintaining high standards of accuracy and reliability.

What Opportunities Does APPB Have?

• Expanding the range of synthetic cannabinoid therapeutics through research and development.
• Increasing market share in the growing CBD consumer market.
• Forming strategic partnerships to expand reach and resources.
• Capitalizing on the increasing demand for cannabinoid testing and analytics services.

What Threats Does APPB Face?

• Stringent regulatory requirements for cannabinoid-based products.
• Competition from larger, more established pharmaceutical and consumer product companies.
• Changing consumer preferences and market trends.
• Potential for adverse effects or safety concerns associated with cannabinoid products.

What Are APPB's Competitive Advantages?

• Proprietary synthetic cannabinoid formulations.
• Vertically integrated business model, encompassing drug development, consumer products, and analytical services.
• Expertise in targeting the endocannabinoid system.
• Established brand recognition in the THC-free CBD market.

What Does APPB Do?

Applied Biosciences Corp., incorporated in 2014 and based in Beverly Hills, California, is a biopharmaceutical company focused on the development and commercialization of synthetic cannabinoid therapeutics. These therapeutics target the endocannabinoid system, aiming to treat a variety of diseases across multiple therapeutic areas. In addition to its pharmaceutical development efforts, Applied Biosciences delivers consumer and OTC THC-free CBD products designed to promote overall health and wellbeing. The company also offers testing and analytics capabilities to its customers, providing a comprehensive suite of services within the cannabinoid market. Since its founding, Applied Biosciences has positioned itself as an innovator in the cannabinoid space, seeking to leverage the therapeutic potential of both synthetic cannabinoids and CBD. The company's strategy involves a vertically integrated approach, encompassing drug development, consumer product formulation, and analytical services. This allows Applied Biosciences to capture value across the entire cannabinoid value chain, from research and development to direct-to-consumer sales. Despite its innovative approach, the company faces challenges common to early-stage biopharmaceutical companies, including the need for significant capital investment and the complexities of regulatory approval processes.

What Products and Services Does APPB Offer?

• Develops synthetic cannabinoid therapeutics.
• Commercializes synthetic cannabinoid therapeutics.
• Creates THC-free CBD products for consumer use.
• Sells THC-free CBD products for consumer use.
• Provides testing services for cannabinoid products.
• Provides analytics services for cannabinoid products.

How Does APPB Make Money?

• Develops and patents synthetic cannabinoid formulations.
• Manufactures and distributes THC-free CBD products directly to consumers and through retail channels.
• Generates revenue through the sale of CBD products.
• Offers testing and analytics services to other companies in the cannabinoid industry.

What Industry Does APPB Operate In?

Applied Biosciences Corp. operates in the rapidly evolving cannabinoid market, which includes both pharmaceutical and consumer segments. The industry is characterized by increasing research into the therapeutic potential of cannabinoids, growing consumer demand for CBD products, and evolving regulatory landscapes. Competition includes established pharmaceutical companies, specialized cannabinoid biotechs, and numerous CBD consumer brands. Applied Biosciences aims to differentiate itself through its focus on synthetic cannabinoids and its integrated approach, but it faces challenges from larger, better-funded competitors and the uncertainties of regulatory approval.

Who Are APPB's Key Customers?

• Consumers seeking THC-free CBD products for health and wellness.
• Patients who may benefit from synthetic cannabinoid therapeutics.
• Other companies in the cannabinoid industry requiring testing and analytics services.

How Applied Biosciences Corp. Is Valued

Relative to its peer group, APPB's quantitative score of 39/100 is below the peer average of 62/100.

Company Profile

Applied Biosciences Corp. operates in the Drug Manufacturers - Specialty & Generic industry within the Healthcare sector. It is headquartered in Beverly Hills, US. The company is led by CEO Christopher Michael Bridges. APPB has traded publicly since 2016.

ROE 94%Key Financial Metrics

Return on equity for Applied Biosciences Corp. stands at 93.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -60.1%, showing how much profit it generates from its asset base. A current ratio of 0.01 means current liabilities exceed short-term assets, a liquidity point worth watching.

F-Score 2/9Financial Health

Applied Biosciences Corp.'s Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -6.43 places it in the distress zone, a signal of elevated financial risk.

Net buyingInsider Activity

The most recent 10 insider filings for Applied Biosciences Corp. break down as 6 sales and 4 purchases. On net that is roughly 508K shares acquired (about $105K) — insiders putting money in tends to read as conviction.

APPB Financials

APPB Latest News

No recent news available for APPB.

APPB Analyst Consensus

APPB MoonshotScore

What Investors Ask About Applied Biosciences Corp. (APPB) — Healthcare

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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