Adagene

ADAG on Nasdaq. Pharmaceutical preparations. Market value $188m.

Watch this stockFree. We tell you when something changes.

This company reports once a year (it is based outside the US), so every figure comes from its annual report for the year to December 2025.

Should I look at this?

Not a fit for our list right now

See Health care stocks that passed both tests

This is not advice. Check the numbers below.

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Cash yield
annual report to December 2025
-9.0%low

For every $100 of what the whole company costs, it produced $-9.03 of spare cash last year. A savings account pays about $4.

Price to profit
annual report to December 2025
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 50 of 100. Price score: 0 of 100. Our list needs 70 on quality and 60 on price.

$2.93 a share, 125% above its 1-year low

Over the past year the price has ranged from $1.30 to $4.85.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

-0.0
-0.0
-0.0
-0.0
-0.0
20212022202320242025
Revenue
$10m$9m$18m$103,204$8m
Operating margin
-711.2%-903.1%-131.0%-34835.4%-279.5%
Debt to equity
0.050.330.310.360.17
Shares outstanding
0.05bn0.05bn0.06bn0.06bn0.06bn

Health checks

  • Free cash flow positive0 of 5 years
  • Accounting checksSkipped: company is not yet profitable
  • Debt0.17× equity
  • Revenue growth, five yearsStrong, 61.4% a year
  • Buying back its own sharesNo, 8% more shares since 2021

Dates

Next results (estimated)
n/a
Last annual report (10-K)
1 April 2026
Next quarterly (estimated, 10-Q)
n/a

Who owns it

None of the long-term investors we follow own it. 36 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

9 investors own more than 5%.

  • HAN 2020 Irrevocable Trust
    Insider or founder
    at least 11.2%−4.4 pts
    (filed with 1 related holder)
    Since 5 June 2026
    What they said

    On May 23, 2025, Mr. Luo received 191,667 ordinary shares from Great Han Fortune LP for the benefit of Peter Luo, and Xiaohong She received 23,333 ordinary shares from Great Han Fortune LP for the benefit of Xiaohong She. On May 23, 2025, Mr. Luo and Xiaohong She transferred…

    Read the filing
  • 10.1%
    Since 30 April 2026
  • Smith Vincent C
    Passive investor
    at least 8.7%+1.8 pts
    (filed with 2 related holders)
    Since 31 December 2025
  • OT Management, LLC
    Passive investor
    at least 8.1%
    (filed with 2 related holders)
    Since 6 September 2024
  • Red Beard Holdings, LLC
    Passive investor
    5.6%
    Since 31 December 2024
  • Chernett Jorey
    Passive investor
    5.1%
    Since 16 March 2026
  • Panacea Venture Healthcare Fund II, L.P.
    Passive investor
    at least 3.8%−1.7 pts
    (filed with 3 related holders)
    Since 30 September 2025
  • WuXi PharmaTech Healthcare Fund I L.P.
    Passive investor
    at least 3.5%−2.4 pts
    (filed with 1 related holder)
    Since 30 June 2026
  • FIL Limited
    Passive investor
    at least 1.8%−6.0 pts
    (filed with 2 related holders)
    Since 31 March 2025
  • FMR LLC
    Passive investor
    Sold down below 5%
    Since 30 June 2025
  • GENERAL ATLANTIC, L.P.
    Passive investor
    Sold down below 5%
    Since 31 December 2025

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 3 insiders bought $162,244 of shares on the open market.

  • Tam Man Kin
    Chief Financial Officer, Director
    Bought
    Date
    23 September 2026
    Shares
    2,000
    Price
    $3.00
    Value
    $6,000
  • Luo Peter
    Chief Executive Officer, Director
    Bought
    Date
    16 September 2026
    Shares
    20,290
    Price
    $3.15
    Value
    $63,980
  • DO CUONG V
    Director
    Bought
    Date
    14 August 2026
    Shares
    2,000
    Price
    $3.75
    Value
    $7,500
  • Luo Peter
    Chief Executive Officer, Director
    Bought
    Date
    5 August 2026
    Shares
    279
    Price
    $3.65
    Value
    $1,018
  • Luo Peter
    Chief Executive Officer, Director
    Bought
    Date
    4 August 2026
    Shares
    22,966
    Price
    $3.65
    Value
    $83,746

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

Adagene doesn’t file a US annual report (10-K), so we haven’t checked it.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.