Disc Medicine (IRON) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: N/A
• Average Volume (3M): 317.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: N/A
• EPS Growth: -14.19%
• Country: US
• Employees: 74
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -3.99
• Shares Outstanding: 34,569,042
• 10 Day Avg. Volume: 310,108
• 30 Day Avg. Volume: 317,005
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -16.70
• 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: $93.44
• Price Target Upside: 73.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Disc Medicine's stock score is driven by its strong cash position and low leverage, balanced by the risks associated with ongoing losses and cash burn. The recent positive development in their bitopertin trial offers a potential future catalyst, but the current negative valuation metrics and mixed technical indicators suggest caution. Investors should be prepared for volatility as the company progresses through its growth phase.

Positive Factors

Financial Position

The company's current cash position of $489.9M is expected to fund its operational plans into 2028, providing strong financial backing for future development.

Regulatory Approval

Bitopertin's potentially expedited path to market in EPP is a clear positive.

Negative Factors

Clinical Data

DISC-0974 MF anemia data in 2H25 will likely be the most significant catalyst for shares with Bristol's Ph 3 INDEPENDENCE data for luspatercept potentially serving as another read-through given planned update in transfusion-dependent MF anemia patients.

Disc Medicine Business Overview & Revenue Model

Company Description

Disc Medicine (IRON) is a biopharmaceutical company focused on the discovery, development, and commercialization of novel therapies for the treatment of hematologic diseases. The company's core products are designed to address conditions related to iron homeostasis, such as anemia and iron overload disorders. Disc Medicine aims to innovate within the hematology sector by developing drugs that can provide effective solutions for patients with unmet medical needs.

How the Company Makes Money

Disc Medicine generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in research and development activities to bring new therapies to market, which involve clinical trials and regulatory approval processes. Once a drug is approved, Disc Medicine can earn revenue through direct sales, licensing agreements, and partnerships with other pharmaceutical companies. These collaborations can include milestone payments, royalties, and co-promotion deals. Additionally, the company may receive funding from grants or investment partnerships that support its research initiatives.

Disc Medicine Financial Statement Overview

Summary

Disc Medicine's financials reflect a biotechnology company in its growth phase, focused on research and development with no current revenue streams. While the company has a solid cash position and low leverage, the ongoing losses and cash burn are significant risks. Investors should weigh the potential for future profitability against current financial challenges.

Income Statement

The company has shown consistent negative net income and lacks revenue generation, which is typical for early-stage biotechnology firms. The EBIT and EBITDA margins are negative and have worsened over time, indicating increasing operational costs without revenue offset.

Balance Sheet

The company has a strong cash position relative to its debt, reflected in a negative net debt. However, the stockholders' equity is significantly high compared to total assets, indicating a favorable equity ratio. The debt-to-equity ratio is low, showing limited leverage risk, but the company has negative earnings, impacting return on equity.

Cash Flow

The operating cash flow is negative, and the free cash flow has decreased, indicating continued cash burn. However, the company maintains a solid cash buffer from previous financing activities, which offsets immediate liquidity concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-136.00K	-100.00K	-300.00K	-192.00K	-322.00K
	EBIT
-129.72M	-91.13M	-47.48M	-30.93M	-34.04M
	EBITDA
-108.27M	-91.03M	-46.53M	-35.78M	-33.69M
	Net Income Common Stockholders
-109.36M	-76.43M	-46.09M	-41.01M	-47.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
360.38M	360.38M	194.61M	88.04M	1.21M
	Total Assets
368.00M	368.00M	200.21M	92.41M	122.09M
	Total Debt
2.10M	2.10M	1.33M	1.65M	21.64M
	Net Debt
-358.28M	-358.28M	-193.28M	-86.38M	20.43M
	Total Liabilities
22.88M	22.88M	23.61M	156.61M	4.82M
	Stockholders Equity
345.12M	345.12M	176.60M	-64.20M	117.27M
Cash Flow		Free Cash Flow
-94.43M	-73.55M	-42.40M	-27.60M	-32.73M
	Operating Cash Flow
-93.93M	-73.46M	-42.25M	-27.53M	-32.71M
	Investing Cash Flow
-292.33M	-89.00K	-151.00K	-68.00K	-22.00K
	Financing Cash Flow
218.31M	239.38M	148.98M	89.93M	34.25M

Disc Medicine Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRON, the sentiment is Negative. The current price of 53.89 is below the 20-day moving average (MA) of 54.61, below the 50-day MA of 57.14, and above the 200-day MA of 51.66, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRON.

Disc Medicine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOLD	61 Neutral	$2.73B	―	-31.68%	―	32.29%	64.39%
APLS	50 Neutral	$3.20B	―	-93.55%	―	97.02%	64.32%
Sector *	49 Neutral	$6.90B	0.01	-53.76%	2.46%	24.91%	-3.11%
IRON	48 Neutral	$1.86B	―	-27.73%	―	―	-14.19%
CRIS	48 Neutral	$22.52M	―	-436.16%	―	0.44%	16.44%
KURA	45 Neutral	$591.93M	―	-42.91%	―	―	2.90%
IMRX	37 Underperform	$46.58M	―	-71.81%	―	-100.00%	-5.05%

Disc Medicine Corporate Events

Disc Medicine Advances Bitopertin Trial for EPP

On January 21, 2025, Disc Medicine announced positive feedback from the FDA regarding their APOLLO post-marketing confirmatory trial for bitopertin, a treatment for erythropoietic protoporphyria (EPP) and X-linked protoporphyria (XLP). The meeting resulted in alignment on the trial design, which includes key features such as co-primary endpoints and a double-blind, placebo-controlled study. The company plans to initiate the trial by mid-2025 and anticipates submitting a New Drug Application in the second half of 2025 under the Accelerated Approval Program. This development marks a significant step forward in potentially providing a life-changing therapy for EPP patients, enhancing Disc Medicine’s position in the biopharmaceutical industry.

Disc Medicine Highlights 2025 Strategy and Financial Updates

Disc Medicine announced strategic priorities for 2025, highlighting progress in its hematology portfolio. The company reported a material weakness in IT controls impacting financial reporting but identified no misstatements. Key developments include a potential accelerated approval path for bitopertin in erythropoietic protoporphyria, phase 2 studies for DISC-0974 in anemia of myelofibrosis and chronic kidney disease, and initiation of a phase 2 trial for DISC-3405 in polycythemia vera. Strengthened financial position with approximately $178 million from equity offering and debt facility, supporting growth through 2027.