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Optinose (OPTN)
:OPTN
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Optinose
(NASDAQ:OPTN)
52Neutral
Positive Factors
Acquisition Impact
OptiNose's acquisition by Paratek Pharmaceuticals presents an opportunity to broaden the commercial reach of XHANCE by targeting not only ENTs and allergy specialists, but also primary care providers.
Market Expansion
The March 15, 2024 approval of an sNDA expands the addressable market by 3x and alleviates payer challenges.
Negative Factors
Financial Outlook Adjustment
The rating for OptiNose has been changed to Neutral and the price target reduced, reflecting adjustments in light of the announced acquisition.
Price Target Reduction
The rating is being lowered to Hold and the price target to $9 from $17.
Optinose (OPTN) vs. S&P 500 (SPY)
Market Cap
$92.64M
Dividend YieldN/A
Average Volume (3M)119.18K
Price to Earnings (P/E)―
Beta (1Y)2.02
Revenue Growth10.19%
EPS Growth44.46%
CountryUS
Employees132
SectorHealthcare
Sector Strength70
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-2.93
Shares Outstanding10,124,281
10 Day Avg. Volume320,698
30 Day Avg. Volume119,180
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.22
Price to Cash Flow (P/CF)-2.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside-1.64% Downside
Rating ConsensusHold
Number of Analyst Covering3
Optinose Business Overview & Revenue Model
Company DescriptionOptinose (OPTN) is a specialty pharmaceutical company focused on developing and commercializing innovative products for patients treated by ear, nose, and throat (ENT) and allergy specialists. The company's core product, XHANCE, is a nasal spray designed to treat chronic rhinosinusitis with nasal polyps in adults. Optinose operates primarily within the healthcare and pharmaceutical sectors, leveraging its proprietary Exhalation Delivery System to provide effective treatments for ENT conditions.
How the Company Makes MoneyOptinose makes money primarily through the sale of its flagship product, XHANCE, which is a prescription nasal spray. The company's revenue is generated from direct sales to specialty pharmacies and distributors, who then supply the product to healthcare providers and patients. Optinose's revenue model relies on physician prescriptions and patient demand for XHANCE, driven by its effectiveness in treating chronic rhinosinusitis with nasal polyps. Additionally, Optinose engages in partnerships and collaborations with other healthcare entities to expand its market reach and increase product adoption, though specific details on significant partnerships are not available.
Optinose Financial Statement Overview
Summary
Optinose faces notable profitability and leverage challenges. Despite strong gross margins, net profitability and cash flow remain areas of concern. The company's high debt levels and negative equity raise red flags about its financial health. Strategic improvements in revenue growth and cost management are crucial for improving financial stability.Income Statement
Optinose's TTM (Trailing-Twelve-Months) gross profit margin is strong at 89.91%, indicating efficient cost management. However, the company has a deeply negative net profit margin of -41.16%, highlighting significant profitability challenges. Revenue growth from the previous year is modest at 6.6%, but EBIT and EBITDA margins are negative, showing operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a high debt burden with a negative stockholders' equity, resulting in a non-meaningful debt-to-equity ratio. The significant negative equity ratio of -31.37% indicates a highly leveraged position, raising concerns about financial stability.30
Negative
Cash Flow
Operating cash flow is negative, and the free cash flow growth rate is concerning, with a substantial deficit. The operating cash flow to net income ratio is 1.27, reflecting cash generation challenges relative to net losses. The company relies heavily on financing activities to sustain operations.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 75.67M | 70.99M | 76.28M | 74.65M | 49.12M | 34.63M |
| Gross Profit | |||||
| 68.06M | 62.35M | 67.01M | 65.50M | 41.60M | 29.34M |
| EBIT | |||||
| -19.19M | -22.75M | -55.90M | -66.45M | -87.22M | -95.60M |
| EBITDA | |||||
| -10.49M | -15.55M | -57.46M | -65.68M | -85.32M | -99.32M |
| Net Income Common Stockholders | |||||
| -31.15M | -35.48M | -76.39M | -81.65M | -98.33M | -108.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 200.99M | 73.68M | 94.24M | 110.50M | 144.16M | 147.14M |
| Total Assets | |||||
| 216.99M | 107.73M | 144.22M | 166.07M | 188.81M | 172.65M |
| Total Debt | |||||
| 72.50M | 131.75M | 131.17M | 130.70M | 125.20M | 74.53M |
| Net Debt | |||||
| -128.49M | 58.06M | 36.93M | 20.20M | -18.95M | -72.61M |
| Total Liabilities | |||||
| 98.38M | 194.34M | 200.84M | 187.84M | 182.03M | 111.07M |
| Stockholders Equity | |||||
| 118.61M | -86.61M | -56.62M | -21.77M | 6.79M | 61.58M |
| Cash Flow | Free Cash Flow | ||||
| -39.79M | -20.86M | -67.71M | -77.10M | -86.75M | -91.37M |
| Operating Cash Flow | |||||
| -39.64M | -20.53M | -67.65M | -76.94M | -86.21M | -90.81M |
| Investing Cash Flow | |||||
| -145.00K | -328.00K | -63.00K | -62.00K | -546.00K | -557.00K |
| Financing Cash Flow | |||||
| 55.44M | 300.00K | 51.44M | 43.32M | 83.81M | 37.53M |
Optinose Technical Analysis
Positive
9.15
Price Trends
6.30
Positive
6.80
Positive
10.42
Negative
Market Momentum
0.94
Negative
81.42
Negative
89.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTN, the sentiment is Positive. The current price of 9.15 is above the 20-day moving average (MA) of 6.79, above the 50-day MA of 6.30, and below the 200-day MA of 10.42, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 81.42 is Negative, neither overbought nor oversold. The STOCH value of 89.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPTN.
Optinose Risk Analysis
Optinose disclosed 68 risk factors in its most recent earnings report. Optinose reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Optinose Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $92.64M | ― | 75.79% | ― | 10.19% | 44.46% | |
49 Neutral | $776.79M | ― | -53.46% | ― | -41.91% | -459.51% | |
49 Neutral | $6.85B | 0.81 | -52.75% | 2.49% | 20.08% | 1.28% | |
48 Neutral | $400.69M | ― | -43.42% | ― | -5.97% | -25.87% | |
44 Neutral | $139.54M | ― | -336.97% | ― | 167.28% | -34.13% | |
40 Underperform | $35.01M | ― | 41.08% | ― | -0.55% | 49.85% |
* Healthcare Sector Average
Performance Comparison
OPTN
Optinose
9.15
-12.45
-57.64%
EYPT
EyePoint Pharmaceuticals
5.83
-14.44
-71.24%
KPTI
Karyopharm Therapeutics
4.16
-19.54
-82.45%
SCPH
scPharmaceuticals
2.78
-2.07
-42.68%
ARRY
Array Technologies
5.08
-9.61
-65.42%
Optinose Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -0.22% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there are positive trends in prescription growth and revenue per prescription, the overall financial performance did not meet expectations, resulting in a downward revision of revenue guidance. There are also operational challenges in prescription fulfillment and prior authorization requirements.Highlights
New Inflection in Prescription Growth
XHANCE observed a 20% to 40% growth in new prescriptions during October, indicating a positive trend in demand.
Increased Average Net Revenue Per Prescription
The average net revenue per prescription increased to $320 in Q3 2024, a 36% rise compared to Q3 2023.
New Insurance Coverage with Express Scripts
XHANCE was added to Express Scripts' national formularies, improving insurance coverage for over 24 million lives.
Operating Expense Control
Operating expenses for 2024 are expected to be $90 million to $93 million, reduced from the previous guidance of $95 million to $101 million.
Lowlights
Lower Than Expected Revenue
XHANCE net revenue for Q3 2024 was $20.4 million, lower than expected, leading to a revised full year revenue guidance of $75 million to $79 million down from $85 million to $90 million.
Challenges with Prescription Fulfillment
The optimization of the new hub services platform for prescription fulfillment took more time and effort than initially anticipated.
High Prior Authorization Requirement
Approximately 50% of commercial covered lives are still subject to prior authorizations, creating challenges for prescription fulfillment.
Company Guidance
During the OptiNose Q3 2024 earnings call, the company adjusted its full-year revenue guidance for XHANCE, projecting net revenues between $75 million and $79 million, down from previous expectations of $85 million to $90 million. This revision reflects a third-quarter net revenue of $20.4 million, a slight increase from $19.8 million in Q3 2023, and a 3% growth year-over-year. The average net revenue per prescription rose to $320, marking a 36% increase from the prior year's Q3. Despite some challenges, including inventory stocking effects and slower-than-anticipated uptake, the company observed an inflection in new prescriptions, indicating potential growth. OptiNose also highlighted improvements in insurance coverage, such as XHANCE's inclusion in Express Scripts' national formularies, enhancing patient access and reducing prior authorization burdens. The company remains optimistic about achieving peak annual net revenues of at least $300 million with further market penetration.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.