Monte Rosa Therapeutics (GLUE) AI Stock Analysis

• Market Cap: $295.86M
• Dividend Yield: N/A
• Average Volume (3M): 921.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: N/A
• EPS Growth: 61.09%
• Country: US
• Employees: 134
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -1.03
• Shares Outstanding: 61,509,823
• 10 Day Avg. Volume: 1,085,965
• 30 Day Avg. Volume: 921,143
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 23.80
• Price to Cash Flow (P/CF): -4.20
• 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: $15.60
• Price Target Upside: 224.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Monte Rosa Therapeutics shows potential with recent advancements in clinical trials and strategic partnerships, providing a positive outlook for future growth. However, the company faces challenges with profitability and negative earnings, reflected in a negative P/E ratio and bearish technical indicators. The stable balance sheet and strong cash position offer some financial security, but continued focus on revenue growth and efficiency is critical.

Positive Factors

Clinical Data

The update is considered an incremental positive for the MRT-2359 program.

Collaborative Agreements

GLUE announced a collaborative agreement with Novartis to develop its first in class VAV1-degrader program MRT-6160.

Safety Profile

Safety for the recommended dosage seems good, with no signs of hypotension, CRS, or clinically significant hypocalcemia.

Negative Factors

Patient Data Concerns

There is concern that the MRT-2359 Ph1 update may be limited due to a small number of relevant patients, which may hinder understanding its activity in specific tumors.

Pipeline Progress

The remainder of GLUE's pipeline is at an early stage, with limited stock-moving clinical data expected from other projects in 2025.

Stock Upside Limitations

The decision to partner MRT-6160 limits material upside for the stock on the upcoming Phase 1 readout.

Monte Rosa Therapeutics Business Overview & Revenue Model

Company Description

Monte Rosa Therapeutics, Inc., a biopharmaceutical company, engages in the development of novel small molecule precision medicines that employ the body's natural mechanisms to selectively degrade therapeutically relevant proteins. It develops an oral molecular glue degrader for GSPT1, a translational termination factor and degron-containing protein for the treatment of Myc-driven cancers. The company also develops CDK2 to treat ovarian, uterine, and breast cancers; NEK7 for the treatment of inflammatory diseases, such as Crohn's disease, neurodegenerative disease, diabetes, and liver disease; VAV1, a target protein for autoimmune diseases; and BCL11A, a therapeutically-relevant protein in hemoglobinopathies. Monte Rosa Therapeutics, Inc. was incorporated in 2019 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Monte Rosa Therapeutics generates revenue primarily through the development and commercialization of its proprietary small molecule degraders. The company may enter into licensing agreements, collaborations, or partnerships with larger pharmaceutical companies to co-develop and commercialize its drug candidates. Revenue can be obtained from upfront payments, milestone payments based on the achievement of specific clinical or regulatory milestones, and royalties from product sales once the therapies are commercialized. Additionally, Monte Rosa may benefit from research grants or funding from private or public institutions to support its R&D activities.

Monte Rosa Therapeutics Financial Statement Overview

Summary

Monte Rosa Therapeutics is in a growth phase, with recent revenue generation being a positive development. However, the company continues to face challenges with profitability and cash flow management. The balance sheet remains strong due to low leverage and a solid equity base, but the persistent net losses indicate a need for strategic improvements in operations and cost management.

Income Statement

Monte Rosa Therapeutics has shown some revenue generation in the TTM period, evidenced by a positive gross profit, marking an improvement from previous years with no revenue. However, the company remains unprofitable with a significant net loss, resulting in negative net profit and EBIT margins. The revenue growth is a positive sign, but negative profitability metrics indicate ongoing financial challenges.

Balance Sheet

The company maintains a solid equity base with a relatively low debt-to-equity ratio, which suggests financial stability. The equity ratio is healthy, indicating the company's reliance on equity financing. Despite this, the company has been operating at a loss, negatively affecting return on equity.

Cash Flow

Monte Rosa Therapeutics has a negative free cash flow, which has slightly worsened over the TTM period. However, the company has managed to maintain a strong cash position through financing activities. The operating cash flow is negative, which could be a concern if these trends continue without improved operational efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
23.73M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
17.92M	-6.22M	-8.56M	-2.13M	-537.00K	-72.00K
	EBIT
-128.98M	-143.31M	-112.38M	-72.88M	-28.01M	-7.99M
	EBITDA
-121.07M	-137.09M	-99.94M	-70.75M	-27.47M	-7.67M
	Net Income Common Stockholders
-119.39M	-135.35M	-104.62M	-71.94M	-36.07M	-8.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.00M	232.41M	262.83M	346.07M	41.70M	6.00M
	Total Assets
0.00	303.75M	342.39M	366.33M	49.38M	11.09M
	Total Debt
0.00	46.04M	47.00M	0.00	67.76M	750.00K
	Net Debt
6.00M	-82.06M	-7.91M	-346.07M	26.07M	-5.25M
	Total Liabilities
0.00	124.50M	70.98M	18.81M	98.11M	23.24M
	Stockholders Equity
6.80M	179.25M	271.41M	347.51M	-48.73M	-12.15M
Cash Flow		Free Cash Flow
-62.79M	-62.84M	-105.38M	-69.09M	-26.44M	-7.56M
	Operating Cash Flow
-57.29M	-43.80M	-92.47M	-59.36M	-23.05M	-6.17M
	Investing Cash Flow
741.00K	88.80M	-219.22M	-9.65M	-3.39M	-1.39M
	Financing Cash Flow
123.46M	27.49M	20.47M	377.56M	60.06M	15.00M

Monte Rosa Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLUE, the sentiment is Neutral. The current price of 4.81 is above the 20-day moving average (MA) of 4.52, below the 50-day MA of 5.55, and below the 200-day MA of 6.12, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 89.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GLUE.

Monte Rosa Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLUE	52 Neutral	$295.86M	―	-36.15%	―	―	61.09%
TSHA	52 Neutral	$365.00M	―	-121.94%	―	-46.07%	71.52%
ARCT	51 Neutral	$298.32M	―	-31.16%	―	-13.98%	-200.43%
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
OLMA	46 Neutral	$338.93M	―	-39.07%	―	―	0.42%
SEPN	44 Neutral	$265.32M	―	3.77%	―	―	―
AURA	43 Neutral	$286.79M	―	-46.01%	―	―	9.22%

Monte Rosa Therapeutics Corporate Events

Monte Rosa Therapeutics Reports Q4 2024 Financial Results

Monte Rosa Therapeutics announced its fourth quarter 2024 financial results and provided updates on its clinical programs. The Phase 1 study of MRT-6160 showed promising results in VAV1 degradation and cytokine inhibition, supporting its potential in immune-mediated diseases and paving the way for Phase 2 studies. Meanwhile, the Phase 1/2 study of MRT-2359 demonstrated encouraging clinical responses in castration-resistant prostate cancer, prompting the company to focus on this cohort while deprioritizing other tumor types. Monte Rosa’s strong cash position is expected to fund operations into 2028, and the company continues to advance its early-stage pipeline, including the NEK7-directed MRT-8102 and other molecular glue degrader programs.