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Aclaris Therapeutics (ACRS)
NASDAQ:ACRS
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Aclaris Therapeutics
(NASDAQ:ACRS)
49Neutral
Positive Factors
Clinical Trials
ACRS confirmed that clinical trial activities for the Phase 2b of trial of bosakitug in atopic dermatitis have been initiated.
Financial Performance
ACRS has a cash runway into 2028, supporting its operations for several more years.
Strategic Partnerships
The acquisition of worldwide rights to two in-licensed biologics, BSI-045B and BSI-502, is expected to strengthen Aclaris Therapeutics Inc.'s immunology-focused pipeline.
Negative Factors
Market Competition
BSI-045B is believed to be differentiated from competitors due to its extended residence time, high binding affinity, and promising pharmacological activity.
Pipeline Risks
Legacy pipeline programs may generate additional value.
Aclaris Therapeutics (ACRS) vs. S&P 500 (SPY)
Market Cap
$178.07M
Dividend YieldN/A
Average Volume (3M)692.41K
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth-40.09%
EPS Growth-18.67%
CountryUS
Employees91
SectorHealthcare
Sector Strength78
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)-1.51
Shares Outstanding107,918,820
10 Day Avg. Volume766,761
30 Day Avg. Volume692,415
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.57
Price to Cash Flow (P/CF)-5.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.67Price Target Upside546.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Aclaris Therapeutics Business Overview & Revenue Model
Company DescriptionAclaris Therapeutics, Inc. operates as a dermatologist-led biopharmaceutical company, which engages in identifying, developing, and commercializing novel drugs to address the needs in medical and aesthetic dermatology and immunology. It operates through Therapeutics and Contract Research segments. The Therapeutics segment focuses in identifying, developing, and commercializing innovative and differentiated therapies to address significant unmet needs in medical and aesthetic dermatology. The Contract Research segment provides laboratory services under contract research arrangements to pharmaceutical and biotech companies. The company was founded by Neal S. Walker, Frank Ruffo, Kamil Ali-Jackson, Christopher V. Powala, and Stuart D. Shanler in July 2012 and is headquartered in Malvern, PA.
How the Company Makes MoneyAclaris Therapeutics makes money primarily through the development and potential commercialization of its proprietary drug candidates. The company's revenue model includes milestones and royalty payments from partnerships with larger pharmaceutical companies that collaborate on the development and commercialization of Aclaris's therapies. Additionally, Aclaris may earn revenue from out-licensing its technologies and intellectual property, as well as from any approved products sold directly to the market. The company's earnings are significantly influenced by the successful advancement of its drug candidates through clinical trials and regulatory approvals, as well as strategic partnerships that provide funding for development activities.
Aclaris Therapeutics Financial Statement Overview
Summary
Aclaris Therapeutics shows inconsistent revenue growth with substantial negative EBIT and net income margins, despite a strong balance sheet with no debt and substantial cash reserves. The company struggles with profitability and positive cash flow, relying on external financing.Income Statement
Aclaris Therapeutics has experienced fluctuating revenue growth, with a decline from 2023 to 2024. The company struggles with profitability, indicated by substantial negative EBIT, EBITDA, and net income margins. Gross profit margin is relatively high, suggesting effective cost management at the gross level, but significant operating losses highlight challenges in controlling other expenses.40
Negative
Balance Sheet
The balance sheet displays a strong equity position with zero debt in 2024, leading to a healthy equity ratio. However, consistent losses have eroded equity over time. The company maintains significant cash reserves which provide a buffer against operational losses, but the lack of profitability poses a long-term risk.60
Neutral
Cash Flow
Cash flow analysis reveals negative operating cash flow, indicating a reliance on external financing to sustain operations. Free cash flow remains negative, although there is a slight improvement in cash flow stability compared to previous years. The company is capable of raising capital, as evidenced by positive financing cash flows.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 18.72M | 31.25M | 29.75M | 6.76M | 6.48M | Gross Profit |
| 15.93M | 13.17M | 17.79M | 2.05M | 1.35M | EBIT |
| -141.93M | -97.36M | -85.15M | -65.38M | -50.91M | EBITDA |
| -51.72M | -117.56M | -84.36M | -65.06M | -48.20M | Net Income Common Stockholders |
| -132.06M | -88.48M | -88.66M | -114.28M | -51.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 113.59M | 119.11M | 229.81M | 225.66M | 54.13M | Total Assets |
| 220.33M | 197.41M | 254.60M | 251.21M | 70.78M | Total Debt |
| 0.00 | 426.00K | 684.00K | 693.00K | 11.26M | Net Debt |
| -24.57M | -39.45M | -44.59M | -26.66M | -42.88M | Total Liabilities |
| 64.77M | 40.23M | 56.98M | 53.87M | 33.13M | Stockholders Equity |
| 155.55M | 157.18M | 197.62M | 197.34M | 37.65M |
| Cash Flow | Free Cash Flow | |||
| -20.20M | -79.63M | -68.17M | -52.44M | -39.09M | Operating Cash Flow |
| -20.07M | -78.33M | -67.57M | -52.13M | -38.63M | Investing Cash Flow |
| -69.77M | 46.22M | 12.63M | -167.63M | 6.39M | Financing Cash Flow |
| 74.54M | 26.71M | 72.87M | 225.05M | 18.37M |
Aclaris Therapeutics Technical Analysis
Negative
1.65
Price Trends
2.33
Negative
2.53
Negative
1.86
Negative
Market Momentum
-0.19
Positive
23.13
Positive
10.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACRS, the sentiment is Negative. The current price of 1.65 is below the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.33, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 23.13 is Positive, neither overbought nor oversold. The STOCH value of 10.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACRS.
Aclaris Therapeutics Risk Analysis
Aclaris Therapeutics disclosed 65 risk factors in its most recent earnings report. Aclaris Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aclaris Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
49 Neutral | $178.07M | ― | -84.46% | ― | -40.09% | -18.67% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
45 Neutral | $591.93M | ― | -42.91% | ― | ― | 2.90% | |
44 Neutral | $23.43M | ― | -221.25% | ― | -59.08% | 18.99% | |
42 Neutral | $110.00M | ― | -54.21% | ― | -78.55% | -0.92% | |
25 Underperform | $38.73M | ― | 1063.61% | ― | 1404.02% | 59.49% |
* Healthcare Sector Average
Performance Comparison
ACRS
Aclaris Therapeutics
1.65
0.40
32.00%
FATE
Fate Therapeutics
1.01
-6.63
-86.78%
CARA
Cara Therapeutics
5.12
-5.32
-50.96%
ATRA
Atara Biotherapeutics
6.61
-10.07
-60.37%
KURA
Kura Oncology
7.33
-15.50
-67.89%
Aclaris Therapeutics Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -21.43% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Aclaris' strong financial position and promising advancement of ATI-2138, despite some challenges in cash reserves and competitive landscape considerations. The company is making strategic moves in its drug development with a focus on efficiency and differentiation.Highlights
Strong Financial Position
Aclaris ended the first quarter with $161 million in cash, cash equivalents, and marketable securities, with no outstanding debt. This positions the company well financially for upcoming initiatives.
Advancement of ATI-2138
Decision to move ATI-2138 forward in a proof-of-concept study for moderate to severe atopic dermatitis, showing promising preclinical and Phase I results.
Cost Containment Success
Cost containment initiatives are on track, with significant reductions in cash expenditures expected for the remainder of the year.
Potential Best-in-Class Treatment
ATI-2138 shows potential as a best-in-class dual inhibitor of ITK and JAK3, designed to treat autoimmune diseases with a favorable safety profile.
Lowlights
Decreased Cash Reserves
Cash reserves decreased from $182 million at year-end to $161 million at the end of Q1, partly due to nonrecurring payments related to discontinued programs and severance.
Indication Reevaluation Required
Reevaluation of indication selection for ATI-2138 was necessary, indicating potential prior misalignment in strategy.
Competitive Landscape Challenges
The competitive landscape in atopic dermatitis is evolving, with a need to differentiate ATI-2138 from existing treatments, such as upadacitinib and biologics like dupilumab.
Company Guidance
During the Aclaris Therapeutics Q1 2024 earnings call, several key metrics and strategic updates were provided. The company ended the first quarter with cash, cash equivalents, and marketable securities totaling $161 million, down from $182 million at the end of the previous year. Approximately $14 million of the expenditures in the first quarter were related to nonrecurring payments. Aclaris has decided to advance ATI-2138, their oral small molecule ITK JAK3 inhibitor, into a Phase II proof-of-concept study targeting atopic dermatitis. The study is designed as an open-label trial involving 15 patients over 12 weeks, with a focus on safety, pharmacokinetics (PK), and early efficacy signals. Joseph Monahan highlighted that ATI-2138 is 44.4 times more potent than ritlecitinib in blocking ITK-dependent cytokine production and 5.4 times more potent in JAK3-dependent readouts. Financially, Aclaris is committed to maintaining a strong balance sheet with ongoing cost containment initiatives and exploring business development opportunities to source nondilutive capital.Aclaris Therapeutics Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Aclaris Therapeutics Highlights Drug Progress and Financial Strength
Positive
Jan 13, 2025
Aclaris Therapeutics has updated its corporate overview presentation, highlighting the progress and potential of its drug candidates, including ATI-045, ATI-052, and ATI-2138. The company is well-positioned financially, with a strong cash runway expected to support operations into 2028, and is leveraging its expertise in small and large molecule discovery to advance its pipeline. This update suggests a solid trajectory for Aclaris in its market, potentially enhancing its position in the biotechnology industry and providing significant opportunities for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.