ABEO

The headline is a trap. ABEO's $71.2M FY2025 net income and 6.3x P/E are almost entirely a mirage: the MD&A shows a $152.4M pre-tax gain from selling a priority review voucher. Strip that out and the real business posted a -$89.4M operating loss (margin -1,537%) on just $5.82M of revenue, of which only $2.4M was actual ZEVASKYN product sales — the other $3.4M was a Taysha/Rett milestone. At a $365M market cap that's ~63x sales for a company that treated its first commercial patient in December 2025. The P/E is meaningless here; the P/S tells the real story.

What keeps this from being an 'avoid' is that the PRV monetization did something valuable: it recapitalized the company. Equity jumped 262% to $159M, current assets are $205M against only $29.6M current liabilities and $20M total debt (liabilities/equity 0.38x), so despite -$76.3M operating cash burn there is roughly two years of runway without a forced raise. ZEVASKYN is a genuine asset — the first and only FDA-approved autologous gene therapy for RDEB wounds, with Orphan Drug and Rare Pediatric designations and no competing cure. That is real option value on a small enterprise value once you net out the cash.