Checkpoint Therapeutics (CKPT) AI Stock Analysis

• Market Cap: $334.22M
• Dividend Yield: N/A
• Average Volume (3M): 4.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -60.19%
• EPS Growth: 56.60%
• Country: US
• Employees: 24
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -1.27
• Shares Outstanding: 83,063,736
• 10 Day Avg. Volume: 2,476,756
• 30 Day Avg. Volume: 4,590,624
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4228.69
• Price to Cash Flow (P/CF): -4.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.30
• Price Target Upside: 32.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Checkpoint Therapeutics faces significant financial challenges with declining revenues and negative margins. However, the technical analysis shows strong upward momentum, and the recent merger agreement with Sun Pharma provides a positive outlook. The valuation remains unattractive due to the negative P/E ratio. Overall, while there are short-term opportunities, substantial financial issues pose long-term risks.

Positive Factors

Acquisition

Checkpoint is being acquired by Sun Pharmaceuticals at a significant premium, representing a major achievement for the company.

Drug Approval

Checkpoint's drug, cosibelimab-ipdl, received FDA approval as the first and only PD-L1 blocking antibody for certain cSCC patients, marking a significant advancement.

Strategic Partnerships

Checkpoint announced a collaboration with GC Cell to explore the combination of Checkpoint's cosibelimab with GC Cell's autologous cytokine-induced killer T cell therapy, Immuncell-LC, which could enhance therapeutic options and broaden the spectrum of treatable diseases.

Negative Factors

Capital Requirements

There is less than a 5% likelihood that the company will raise the capital required to commercialize UNLOXCYT itself.

Financial Performance

Checkpoint announced 3Q24 results, posting an EPS of ($0.23) compared to the consensus estimate of ($0.15).

Checkpoint Therapeutics Business Overview & Revenue Model

Company Description

Checkpoint Therapeutics, Inc., clinical-stage immunotherapy and targeted oncology company, focuses on the acquisition, development, and commercialization of novel treatments for patients with solid tumor cancers. The company's lead antibody product candidate is Cosibelimab, a fully-human monoclonal antibody of IgG1 subtype that directly binds to programmed death ligand-1 (PD-L1) and blocks the PD-L1 interaction with the programmed death receptor-1 and B7.1 receptors; and CK-302, a human agonistic antibody that is designed to bind to and trigger signaling in GITR expressing cells. It is also developing Olafertinib, a third-generation epidermal growth factor receptor (EGFR) inhibitor, as a treatment for patients with EGFR mutation-positive non-small cell lung cancer; CK-103, a selective and potent small molecule inhibitor of bromodomain and extra-terminal bromodomains; and anti-carbonic anhydrase IX (CAIX) antibody, a fully human preclinical antibody to recognize CAIX expressing cells and kill them via antibody-dependent cellular cytotoxicity and complement-dependent cytotoxicity. The company has collaboration agreements with TG Therapeutics, Inc. to develop and commercialize certain assets in connection with its licenses in the field of hematological malignancies. The company was incorporated in 2014 and is based in Waltham, Massachusetts. Checkpoint Therapeutics, Inc. is a subsidiary of Fortress Biotech, Inc.

How the Company Makes Money

Checkpoint Therapeutics primarily makes money through the development and commercialization of its oncology product candidates. As a clinical-stage company, its revenue model is largely based on securing funding through partnerships, collaborations, and licensing agreements with larger pharmaceutical companies. Additionally, Checkpoint Therapeutics may generate revenue from milestone payments and royalties related to the successful development and commercialization of its drug candidates. The company is also involved in seeking grants and research funding to support its clinical trials and product development efforts.

Checkpoint Therapeutics Financial Statement Overview

Summary

Checkpoint Therapeutics is facing substantial financial challenges, characterized by declining revenues, negative profitability margins, and a weak balance sheet. The company must address its operational inefficiencies and improve its revenue growth trajectory to enhance financial stability and investor confidence.

Income Statement

Checkpoint Therapeutics has experienced a significant decline in revenue and profit margins over the years, with zero revenue reported in the latest year. The company has consistently reported negative EBIT and EBITDA margins, indicating ongoing operational challenges and cost inefficiencies.

Balance Sheet

The balance sheet shows a negative stockholders' equity, reflecting potential financial instability. The absence of debt is a positive, but the lack of equity and declining asset base pose significant risks to financial health.

Cash Flow

While the operating cash flow is negative, there is a notable improvement in free cash flow due to reduced cash outflows. However, the company's reliance on external financing to cover its operational deficits is concerning.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
47.00K	0.00	103.00K	192.00K	268.00K	1.07M
	Gross Profit
-21.23M	0.00	-43.46M	-49.63M	-48.19M	-15.28M
	EBIT
-37.51M	-56.17M	-52.15M	-58.33M	-56.72M	-23.20M
	EBITDA
-37.51M	-56.17M	-52.15M	-58.33M	-56.72M	-23.20M
	Net Income Common Stockholders
-46.47M	-56.24M	-51.85M	-66.92M	-56.62M	-22.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.97M	6.60M	4.93M	12.07M	54.73M	40.77M
	Total Assets
46.05M	7.47M	5.38M	13.29M	55.73M	42.60M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-45.97M	-6.60M	-4.93M	-12.07M	-54.73M	-40.77M
	Total Liabilities
1.59M	20.10M	18.43M	32.77M	25.98M	7.22M
	Stockholders Equity
44.46M	-12.63M	-13.05M	-19.48M	29.75M	35.38M
Cash Flow		Free Cash Flow
-30.76M	-31.10M	-47.59M	-57.55M	-26.31M	-16.55M
	Operating Cash Flow
-30.76M	-31.10M	-47.59M	-57.55M	-26.31M	-16.55M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
33.69M	32.78M	40.45M	14.89M	40.27M	31.25M

Checkpoint Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CKPT, the sentiment is Positive. The current price of 4.01 is below the 20-day moving average (MA) of 4.03, above the 50-day MA of 3.55, and above the 200-day MA of 3.04, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 43.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CKPT.

Checkpoint Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETON	56 Neutral	$367.94M	―	-19.16%	―	23.29%	-309.12%
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
UPB	48 Neutral	$406.60M	―		―	―	―
PHAT	47 Neutral	$322.42M	―	181.41%	―	8001.47%	-37.69%
CKPT	45 Neutral	$334.22M	―	369.09%	―	-60.19%	56.60%
AMLX	45 Neutral	$323.40M	―	-100.88%	―	-77.06%	-705.82%
ZBIO	38 Underperform	$331.40M	―		―	―	―

Checkpoint Therapeutics Corporate Events

Checkpoint Therapeutics Merges with Sun Pharma for $416M

On March 9, 2025, Checkpoint Therapeutics entered into a Merger Agreement with Sun Pharmaceutical Industries, where Sun Pharma will acquire Checkpoint. The transaction, valued at up to $416 million, includes an upfront cash payment of $4.10 per share and a contingent value right of up to $0.70 per share upon achieving specific milestones. This merger is expected to bolster Sun Pharma’s onco-dermatology portfolio and accelerate global access to Checkpoint’s FDA-approved treatment, UNLOXCYT™. The transaction is subject to customary closing conditions and is anticipated to complete in the second quarter of 2025.