Centessa Pharmaceuticals (CNTA) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -100.00%
• EPS Growth: -25.86%
• Country: US
• Employees: 77
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -1.99
• Shares Outstanding: 133,184,340
• 10 Day Avg. Volume: 1,105,737
• 30 Day Avg. Volume: 1,066,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 303.02
• Price to Cash Flow (P/CF): -24.30
• 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: $31.60
• Price Target Upside: 116.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Centessa Pharmaceuticals' stock is challenged by significant financial instability and bearish technical indicators. The company faces ongoing losses and cash flow issues, overshadowing potential growth from its OX2R agonist pipeline. The stock's undervaluation and potential for a technical rebound provide minor offsets, resulting in a below-average score.

Positive Factors

Financial Performance

The price target was raised from $24 to $36 following bullish developments.

Market Opportunity

ORX142 is on track to expand CNTA's market opportunity by addressing excessive daytime sleepiness in neurological conditions like Parkinson's Disease and ADHD.

Pipeline Progress

The orexin pipeline remains on track with Ph2a data from lead program, ORX750, still expected in 2025.

Negative Factors

Market Competition

About 20-30% of patients in practice exhaust all treatment options, including oxybates, highlighting limitations in current therapies.

R&D Expenses

CNTA reported a one-time R&D charge of $31.5M related to the discontinuation of the hemophilia program, SerpinPC.

Centessa Pharmaceuticals Business Overview & Revenue Model

Company Description

Centessa Pharmaceuticals is a biopharmaceutical company focused on discovering and developing innovative medicines for a wide range of diseases. The company operates in the pharmaceuticals sector, with a portfolio encompassing diverse therapeutic areas such as oncology, hematology, and rare diseases. Centessa leverages a unique 'asset-centric' research model that prioritizes the development of high-potential drug candidates through a network of subsidiary companies, each focused on distinct therapeutic areas.

How the Company Makes Money

Centessa Pharmaceuticals generates revenue primarily through the research and development of novel drug candidates, which it aims to bring to market either independently or through strategic partnerships. The company invests in early-stage and clinical development of drug candidates, seeking to advance them through the pipeline to commercialization. Revenue streams are expected to include sales of approved therapies, milestone payments, and royalties from collaborations with larger pharmaceutical companies. Additionally, Centessa may engage in licensing agreements that provide upfront payments and future royalties, contingent upon the success of its drug candidates in clinical trials and eventual market approval.

Centessa Pharmaceuticals Financial Statement Overview

Summary

Centessa Pharmaceuticals is in an early growth stage typical for biotech firms, with substantial investment in R&D reflected in negative profitability metrics. Despite this, the company shows strong equity financing and a manageable debt load, providing a stable foundation for future growth. The focus remains on managing cash burn while advancing towards profitability.

Income Statement

Centessa Pharmaceuticals shows significant improvement in revenue generation with a TTM revenue increase to $6.9 million. However, the company continues to operate at a loss with a negative net profit margin due to high R&D and administrative expenses, typical for a biotech firm in its growth phase. Despite improved gross profit, the EBIT and EBITDA margins remain negative, reflecting ongoing challenges in cost management.

Balance Sheet

The company maintains a solid equity base with a significant increase in stockholders' equity, and a manageable debt-to-equity ratio, which indicates a conservative leverage approach. The equity ratio is strong, suggesting asset funding primarily through equity rather than debt. However, the high net loss impacts return on equity negatively.

Cash Flow

Centessa's cash flow situation highlights large operating cash outflows and negative free cash flow, typical for a biotech firm investing heavily in R&D. While financing cash flow is positive, supporting liquidity, the company must focus on managing cash burn to sustain operations until revenue gains offset expenses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.91M	6.85M	0.00	0.00	0.00
	Gross Profit
6.19M	6.85M	-130.92K	-33.99K	0.00
	EBIT
-161.94M	-171.28M	-212.26M	-139.31M	-10.44M
	EBITDA
-147.50M	-166.07M	-212.26M	-379.16M	-10.43M
	Net Income Common Stockholders
-161.56M	-151.09M	-216.21M	-381.85M	-11.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
256.55M	256.55M	393.64M	595.08M	7.23M
	Total Assets
362.97M	360.25M	444.31M	629.63M	11.72M
	Total Debt
84.59M	84.59M	69.80M	75.70M	5.63M
	Net Debt
-43.44M	-43.44M	-323.84M	-519.38M	-1.60M
	Total Liabilities
126.72M	124.00M	108.14M	138.08M	34.14M
	Stockholders Equity
236.24M	236.24M	336.17M	491.55M	-22.42M
Cash Flow		Free Cash Flow
-93.13M	-160.51M	-201.68M	-136.33M	-10.63M
	Operating Cash Flow
-130.36M	-160.34M	-200.55M	-136.14M	-10.63M
	Investing Cash Flow
-12.02M	-127.00M	-931.00K	63.25M	0.00
	Financing Cash Flow
368.17M	21.12M	457.00K	660.07M	1.36M

Centessa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTA, the sentiment is Negative. The current price of 14.59 is below the 20-day moving average (MA) of 16.16, below the 50-day MA of 16.43, and below the 200-day MA of 14.66, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTA.

Centessa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIR	51 Neutral	$918.86M	―	-38.09%	―	-13.90%	16.56%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
IOVA	48 Neutral	$1.17B	―	-57.48%	―	13698.99%	31.46%
RAPT	46 Neutral	$161.05M	―	-77.09%	―	―	-2.29%
FATE	42 Neutral	$97.33M	―	-54.21%	―	-78.55%	-0.92%
ALXO	38 Underperform	$34.97M	―	-88.91%	―	―	30.37%
CNTA	37 Underperform	$1.94B	―	-73.75%	―	-100.00%	-25.86%

Centessa Pharmaceuticals Corporate Events

Centessa Pharmaceuticals Updates on OX2R Agonist Pipeline

Centessa Pharmaceuticals announced updates on its OX2R agonist pipeline, including ORX750, ORX142, and ORX489, with significant clinical milestones anticipated in 2025. The company aims to position itself as a leader in the emerging category of OX2R agonist therapeutics, bolstered by a strong balance sheet and an estimated cash runway into mid-2027.

Centessa Pharmaceuticals Secures $200 Million Loan Deal

Centessa Pharmaceuticals has entered into a loan and security agreement with Oxford Finance LLC, securing up to $200 million in term loans to refinance existing debt and support its operations. The initial $110 million loan was used to repay existing obligations under a previous note purchase agreement, and the new agreement includes covenants limiting certain financial actions and securing the loans with a first priority security interest in the company’s assets.