Theralase Technologies is very undervalued, this analyst says

Research Capital analyst Andre Uddin maintained a “Speculative buy” rating and C$0.70 target price on Theralase Technologies (Theralase Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:TLT) in an Aug. 27 update, highlighting positive clinical data but warning about the company’s limited cash position.

Toronto-based Theralase is developing Ruvidar, a photodynamic compound for the treatment of non-muscle invasive bladder cancer (NMIBC), alongside its established cool laser therapy business.

For the second quarter, Theralase reported revenue of $220,000, in line with Uddin’s estimate of $200,000 and up from $101,000 a year earlier. The net loss was $1.0-million, or $0.003 per share, matching expectations and slightly improved from a $1.1-million loss last year. The company ended the quarter with $46,000 in cash and no debt. After quarter-end, Theralase completed a $700,000 non-brokered private placement, which Uddin estimates left it with about $300,000 in cash.

“TLT will need to raise additional capital or secure a strategic partnership in the near term,” he said. “The current cash runway appears to support less than one quarter at the prevailing burn rate unless the company continues to raise funds through small-scale placements.”

On the clinical side, Uddin said Ruvidar continues to generate “compelling” data in its pivotal Phase 2 trial. Of 86 patients treated, 70 were evaluable, with 61.4% (43 of 70) achieving a complete response, the primary endpoint. Among responders, 39.5% (17 of 43) maintained a complete response for at least 450 days. By comparison, CG Oncology’s Phase 3 therapy reported a 36% response maintenance rate at 12 months.

With 96% of enrolment complete, Theralase plans to submit a New Drug Submission to Health Canada and a New Drug Application to the U.S. FDA in the fourth quarter of 2026, with decisions expected by mid-2027.

“We believe the pivotal results with Ruvidar in BCG-unresponsive NMIBC remain positive,” Uddin said. “But we remain concerned about the company’s balance sheet. Improving the cash position could unlock upward momentum in the stock.”

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