ESSA Pharma (EPIX) AI Stock Analysis

• Market Cap: $67.47M
• Dividend Yield: N/A
• Average Volume (3M): 106.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: N/A
• EPS Growth: -19.93%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.70
• Shares Outstanding: 44,388,550
• 10 Day Avg. Volume: 141,460
• 30 Day Avg. Volume: 106,817
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -2.70
• 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: $2.25
• Price Target Upside: 48.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

ESSA Pharma faces significant financial challenges with no revenue and continuous losses, impacting its overall score negatively. The stock's bearish technical indicators further pressure its outlook. While the new executive severance plan is a positive strategic move, it does not offset the broader financial and operational concerns. The stock remains a high-risk investment given its current financial and market conditions.

Positive Factors

Financial Flexibility

EPIX's last reported cash balance of $126.8M offers flexibility to evaluate opportunities.

Oncology Expertise

The team's established record in oncology drug development may facilitate discussions around outside development candidates in that category.

Strategic Opportunities

The company will move to a strategic process in which it will explore options that maximize shareholder value.

Negative Factors

Clinical Trial Termination

All remaining clinical studies involving masofaniten, including those combining it with abiraterone acetate and apalutamide and other investigator-sponsored trials, will be discontinued.

Drug Development Discontinuation

EPIX announced that it will discontinue all masofaniten development following a pre-specified futility analysis that showed that this candidate failed to meet the target efficacy profile in the Phase 2 enzalutamide combo study in mCRPC patients naïve to second-generation antiandrogens.

Efficacy Analysis

The futility analysis revealed that the enzalutamide monotherapy control arm was performing better than historical controls and similar to the masofaniten + enzalutamide combo.

ESSA Pharma Business Overview & Revenue Model

Company Description

ESSA Pharma Inc. (EPIX) is a clinical-stage pharmaceutical company focused on developing novel therapies for the treatment of prostate cancer. The company operates within the biotechnology and pharmaceutical sectors, with its core products centering around small molecule drugs that target the androgen receptor pathway in prostate cancer cells. ESSA Pharma's lead product candidate is EPI-7386, a next-generation androgen receptor inhibitor designed to provide therapeutic benefits for patients with metastatic castration-resistant prostate cancer (mCRPC).

How the Company Makes Money

ESSA Pharma generates revenue primarily through partnerships, collaborations, and licensing agreements with larger pharmaceutical companies. These partnerships often involve milestone payments and royalties based on the successful development and commercialization of its product candidates. Additionally, the company may secure funding through research grants and equity financing to support its clinical trials and drug development processes. While ESSA Pharma is in the clinical-stage and does not yet have commercialized products, its potential for revenue generation lies in the successful progression and eventual approval of its drug candidates, leading to licensing deals or acquisition opportunities.

ESSA Pharma Financial Statement Overview

Summary

ESSA Pharma shows a challenging financial position with no revenue generation and continuous losses. The company's strong cash reserves provide some cushion, but the persistent negative cash flows and reliance on equity financing highlight sustainability concerns. Without a clear path to revenue, financial viability remains a significant risk.

Income Statement

ESSA Pharma has reported zero revenue in the TTM (Trailing-Twelve-Months) and previous years, indicating a lack of top-line growth. The company is experiencing significant negative net income and EBIT, reflecting ongoing operational challenges and substantial losses.

Balance Sheet

The balance sheet shows a strong cash position with net cash, reflecting conservative financial management. However, the firm is heavily reliant on equity financing, as evidenced by a very low debt-to-equity ratio. This suggests limited financial leverage but also a lack of traditional debt funding, which might constrain growth opportunities.

Cash Flow

Operating cash flows are consistently negative, indicating cash burn, which is typical for early-stage biotech firms. Despite this, investing cash flows have been positive lately, possibly due to asset divestments or financing inflows. Free cash flow remains negative, highlighting ongoing cash flow difficulties.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-38.17K	0.00	-118.49K	-121.79K	-109.46K	-110.32K
	EBIT
-30.87M	0.00	-32.13M	-35.34M	-36.91M	-23.12M
	EBITDA
-32.41M	0.00	-26.46M	-35.08M	-36.71M	-23.01M
	Net Income Common Stockholders
-31.11M	0.00	-26.58M	-35.10M	-36.81M	-23.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.69M	126.76M	148.08M	57.08M	194.93M	56.32M
	Total Assets
22.33M	128.11M	149.12M	169.50M	198.17M	80.58M
	Total Debt
7.49M	329.26K	80.33K	209.83K	330.97K	59.09K
	Net Debt
-14.20M	-103.38M	-33.62M	-56.87M	-137.49M	-56.26M
	Total Liabilities
8.96M	3.51M	3.50M	2.39M	4.16M	1.33M
	Stockholders Equity
13.37M	128.11M	145.63M	167.12M	194.01M	79.24M
Cash Flow		Free Cash Flow
-22.47M	-22.72M	-19.78M	-28.70M	-25.42M	-16.98M
	Operating Cash Flow
-22.47M	-22.72M	-19.78M	-28.70M	-25.42M	-16.98M
	Investing Cash Flow
79.98M	91.79M	-3.53M	-52.35M	-35.01M	-21.74M
	Financing Cash Flow
733.06K	925.51K	-68.16K	252.74K	141.99M	41.78M

ESSA Pharma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPIX, the sentiment is Neutral. The current price of 1.52 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.63, and below the 200-day MA of 3.43, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EPIX.

ESSA Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	79 Outperform	$9.89B	19.44	23.13%	―	18.49%	176.71%
MDGL	54 Neutral	$6.93B	―	-80.35%	―	―	-10.89%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
ARVN	46 Neutral	$462.83M	―	-35.41%	―	-39.92%	7.38%
KPTI	36 Underperform	$35.60M	―	41.08%	―	-0.55%	49.85%
EPIX	32 Underperform	$67.47M	―	-23.98%	―	―	-19.93%
BHVN	25 Underperform	$1.91B	―	-198.83%	―	―	-65.63%

ESSA Pharma Corporate Events

ESSA Pharma Introduces New Executive Severance Plan

ESSA Pharma Inc. has introduced a new Severance Plan, replacing previous cash severance benefits for certain executive officers. This plan offers cash severance ranging from 1 to 1.5 times an officer’s base salary, with additional compensation for the CEO, tied to events like a Change in Control. The plan aims to retain key executives by providing economic security in case of qualifying terminations, ensuring stability and encouraging dedication to the company’s growth.