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Aytu BioScience Inc (AYTU)
NASDAQ:AYTU
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Aytu BioScience
(NASDAQ:AYTU)
43Neutral
Positive Factors
Business Growth
Aytu BioPharma, Inc. signs commercialization agreement for Canada, diversifying revenue stream in future years.
Financial Performance
Aytu reported total revenue of $16.6M, materially exceeding the estimated $13.8M.
Negative Factors
Revenue Challenges
ADHD revenue, Aytu’s primary source of prescription revenue, experienced a decline and was below the analyst's estimate.
Aytu BioScience (AYTU) vs. S&P 500 (SPY)
Market Cap
$7.77M
Dividend YieldN/A
Average Volume (3M)38.82K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth-30.19%
EPS Growth75.92%
CountryUS
Employees102
SectorHealthcare
Sector Strength78
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-1.45
Shares Outstanding6,169,848
10 Day Avg. Volume48,649
30 Day Avg. Volume38,822
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.11
Price to Cash Flow (P/CF)0.70
P/FCF Ratio0.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside534.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Aytu BioScience Business Overview & Revenue Model
Company DescriptionAytu BioScience, Inc. is a specialty pharmaceutical company primarily focused on developing and commercializing novel therapeutics and consumer healthcare products. The company operates within the healthcare sector, targeting areas such as pediatrics, primary care, and specialty healthcare markets. Aytu BioScience's portfolio includes prescription and consumer healthcare products, with a strong emphasis on innovative treatments addressing significant medical needs.
How the Company Makes MoneyAytu BioScience makes money through the commercialization and sale of its pharmaceutical and consumer healthcare products. The company's revenue model is driven by sales from both prescription medications and over-the-counter consumer products. Key revenue streams include the direct sale of these products to healthcare providers, pharmacies, and consumers. Additionally, the company may engage in strategic partnerships, licensing agreements, and collaborations that contribute to its earnings by expanding the reach and distribution of its products.
Aytu BioScience Financial Statement Overview
Summary
Aytu BioScience faces significant financial challenges with decreasing revenues and profitability, low equity ratio, and inconsistent cash flows. Despite improvements in operating cash flow, the company remains in a precarious position, needing to address revenue declines and improve financial stability to ensure long-term viability.Income Statement
Aytu BioScience exhibits declining revenue and profitability, with a significant decrease in total revenue from $107.4 million in 2023 to $68.8 million in TTM 2024. The gross profit margin is relatively strong at 67.5% for TTM 2024, but the company remains unprofitable with negative EBIT and net profit margins. The revenue growth rate shows a concerning decline of 14.3% year-over-year from 2023 to 2024, indicating a challenging market environment.35
Negative
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.06 in TTM 2024, demonstrating low leverage, but the equity ratio is relatively low at 26.5%, reflecting limited financial stability. The return on equity is negative, indicating unprofitability. Aytu's equity has declined over the years, signaling potential risks in maintaining operational stability.45
Neutral
Cash Flow
Operating cash flow has improved to a positive $673,000 in TTM 2024 from negative values in prior years, indicating better cash management. However, the free cash flow to net income ratio is not favorable due to continued net losses. The company shows a positive free cash flow growth rate, but sustainability remains a concern amid ongoing challenges in generating consistent cash flow.50
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 68.76M | 81.00M | 107.40M | 96.67M | 65.63M | 27.63M | Gross Profit |
| 46.37M | 54.59M | 66.63M | 52.28M | 29.20M | 20.08M | EBIT |
| -8.74M | -5.25M | -17.07M | 37.22M | -38.24M | -20.94M | EBITDA |
| -269.00K | -1.01M | -3.51M | -27.96M | -29.04M | -12.21M | Net Income Common Stockholders |
| -5.25M | -15.84M | -17.05M | -108.78M | -58.29M | -13.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 20.40M | 20.01M | 22.98M | 19.36M | 49.65M | 48.08M | Total Assets |
| 116.23M | 118.09M | 136.46M | 137.62M | 265.67M | 152.84M | Total Debt |
| 1.86M | 15.13M | 16.36M | 18.19M | 28.35M | 2.01M | Net Debt |
| -18.54M | -4.88M | -6.62M | -1.17M | -21.30M | -46.07M | Total Liabilities |
| 85.46M | 90.38M | 97.11M | 91.53M | 128.10M | 57.82M | Stockholders Equity |
| 30.77M | 27.72M | 39.36M | 46.09M | 137.57M | 95.02M |
| Cash Flow | Free Cash Flow | ||||
| 531.00K | -1.39M | -5.13M | -28.82M | -28.30M | -28.37M | Operating Cash Flow |
| 673.00K | -1.39M | -5.13M | -28.82M | -25.96M | -28.37M | Investing Cash Flow |
| 447.00K | -329.00K | -117.00K | -3.25M | -2.78M | -5.66M | Financing Cash Flow |
| -251.00K | -1.26M | 8.87M | 1.53M | 30.31M | 71.07M |
Aytu BioScience Technical Analysis
Negative
1.26
Price Trends
1.53
Negative
1.64
Negative
2.16
Negative
Market Momentum
-0.08
Negative
33.01
Neutral
26.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AYTU, the sentiment is Negative. The current price of 1.26 is below the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.53, and below the 200-day MA of 2.16, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AYTU.
Aytu BioScience Risk Analysis
Aytu BioScience disclosed 57 risk factors in its most recent earnings report. Aytu BioScience reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aytu BioScience 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 | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
43 Neutral | $7.77M | ― | -18.06% | ― | -30.19% | 75.92% | |
40 Underperform | $6.93M | ― | -331.94% | ― | -58.77% | 80.26% | |
39 Underperform | $93.19M | ― | -31.30% | ― | ― | 9.11% | |
32 Underperform | $72.80M | ― | -23.98% | ― | ― | -19.93% | |
31 Underperform | $1.28M | ― | 145.94% | ― | -82.94% | 33.10% |
* Healthcare Sector Average
Performance Comparison
AYTU
Aytu BioScience
1.27
-1.78
-58.36%
ATOS
Atossa Therapeutics
0.72
-0.54
-42.86%
TRVN
Trevena
1.48
-12.34
-89.29%
OPGN
OpGen
1.20
-4.00
-76.92%
EPIX
ESSA Pharma
1.64
-7.40
-81.86%
Aytu BioScience Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -9.35% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive trends in prescription growth and cost savings, while also addressing challenges like declining ADHD revenue and gross margins due to manufacturing transitions. The company is optimistic about future growth and cash flow positivity.Highlights
Positive Sequential Prescription Growth
Both ADHD and Pediatric portfolios returned to positive sequential prescription growth for the first time since late 2022.
Cost Optimization
Corporate optimization initiatives are expected to drive efficiencies with at least $2 million in annual future cost savings.
Seventh Consecutive Positive Adjusted EBITDA
The company reported its seventh consecutive quarter of positive adjusted EBITDA and second consecutive quarter of net income.
Pediatric Portfolio Recovery
Pediatric portfolio net revenue was up 86% sequentially, with significant gains in antihistamine prescriptions.
Cash Balance Increase
Cash balance at the end of December was $20.4 million, up slightly from $20.1 million at the end of September.
Lowlights
ADHD Revenue Decline
ADHD net revenue decreased to $13.8 million from $16.6 million year-over-year, reflecting normalization of stimulant supply chain.
Gross Margin Decline
Gross margin for the second quarter was 66%, down from 78% in Q2 of last year, due to manufacturing transition.
Operating Expenses
Operating expenses, excluding certain costs, were slightly down to $10.2 million from $10.5 million last year, but still affect overall profitability.
Company Guidance
During the Aytu BioPharma Fiscal 2025 Q2 earnings call, CEO Josh Disbrow highlighted several key metrics and strategic initiatives that have shaped the company's recent performance and future outlook. The company achieved positive sequential prescription growth for both its ADHD and pediatric portfolios for the first time since late 2022. ADHD portfolio net revenue was reported at $13.8 million for Q2, reflecting a 16% sequential increase on an apples-to-apples basis, excluding a one-time payer resolution adjustment. Pediatric portfolio net revenue saw significant growth, up 86% sequentially, contributing to a $10 million annualized run rate. Aytu BioPharma also announced it had achieved its seventh consecutive quarter of positive adjusted EBITDA and its second consecutive quarter of net income. The company's cash balance at the end of December 2024 was $20.4 million, up from $20.1 million at the end of September 2024. Cost-saving measures, including $2 million in expected future annual savings, have been a focus, alongside leveraging the Aytu RxConnect platform, which has contributed to improved payer coverage and broadened distribution efforts. These efforts come as the company continues to optimize its operations, including pausing pipeline spending and exiting manufacturing operations, while focusing on driving growth in its prescription business.Aytu BioScience Corporate Events
Legal Proceedings
Aytu BioPharma Proposes Settlement in Shareholder Lawsuit
Negative
Dec 4, 2024
Aytu BioPharma, Inc. announced a proposed settlement in a shareholder derivative lawsuit involving accusations of fiduciary breaches and unjust enrichment by company directors and Armistice Capital. The lawsuit alleges that these parties orchestrated transactions benefiting themselves at the expense of Aytu shareholders. A court hearing is scheduled for January 2025 to determine the fairness of the settlement, which aims to resolve claims and potentially improve corporate governance practices.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Aytu BioScience Announces Leadership Change and Financial Growth
Positive
Nov 13, 2024
Aytu BioPharma has announced significant organizational changes, including the termination of CFO Mark K. Oki and the appointment of Ryan Selhorn as the new CFO. The company reported a net income of $1.5 million in its fiscal 2025 first quarter, marking a financial turnaround led by increased revenues from its ADHD and pediatric portfolios. Aytu’s optimization efforts are expected to streamline operations and reduce expenses by $2 million annually, aiming to further boost profitability and enhance shareholder value.
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.