Silence Therapeutics (SLN) AI Stock Analysis

• Market Cap: $162.84M
• Dividend Yield: N/A
• Average Volume (3M): 257.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -40.10%
• EPS Growth: -16.60%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -1.67
• Shares Outstanding: 46,659,940
• 10 Day Avg. Volume: 180,011
• 30 Day Avg. Volume: 257,162
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.19
• Price to Cash Flow (P/CF): -5.20
• 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: $35.80
• Price Target Upside: 888.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Silence Therapeutics faces significant financial challenges with negative equity and cash flow issues despite revenue growth. Technical indicators are bearish, suggesting potential downside risk. The valuation is hindered by lack of profitability, though the company's strategic planning and extended cash runway offer some optimism. Earnings call highlights positive clinical progress but also strategic delays, impacting the overall score.

Positive Factors

Commercial opportunity

Zerlasiran's ~100% Lp(a) reduction in clinic, coupled with low dosing frequency and clean safety profile can render a significant commercial opportunity.

Financial flexibility

Silence's cash runway now extends into 2027, providing financial flexibility to advance its RNAi pipeline in rare diseases.

Regulatory validation

Zerlasiran represents a potential blockbuster opportunity, particularly with regulatory validation from the FDA (U.S.), EMA (Europe), and PMDA (Japan) on the pivotal trial design.

Negative Factors

Partnership delay

The PhIII start for the Lp(a) program is now paused until a partner is secured.

Stock weakness

The lack of a clear registrational trial design and the delay of a competitor catalyst from NVS/IONS have contributed to the stock weakness.

Silence Therapeutics Business Overview & Revenue Model

Company Description

Silence Therapeutics plc, a biotechnology company, focuses on the discovery and development of novel ribonucleic acid (RNA) therapeutics in hematology, cardiovascular, and other rare and metabolic indications. The company's platform includes mRNAi GalNAc Oligonucleotide Discovery platform designed to accurately target specific disease-associated genes in the liver. It designs short interfering RNA molecules to harness the body's natural mechanism of RNA interference, and degrading messenger RNA molecules that encode specific targeted disease-associated proteins in a cell. The company is developing various product candidates, including SLN360, which is Phase I clinical trials for the treatment of cardiovascular disease with high lipoprotein; SLN124 that is in Phase I clinical trials for the treatment of non-transfusion dependent thalassemia, and Phase I clinical trials for the treatment of myelodysplastic syndrome; and SLN124 for the treatment of polycythemia vera. It has collaboration agreements with AstraZeneca PLC to discover, develop, and commercialize small interfering RNA therapeutics for the treatment of cardiovascular, renal, metabolic, and respiratory diseases; and Mallinckrodt Pharma IP Trading DAC to develop and commercialize RNAi drug targets designed to silence the complement cascade in complement-mediated disorders. The company also has a collaboration with Hansoh Pharmaceutical Group Company Limited to develop siRNAs for three undisclosed targets leveraging Silence's mRNAi GOLD platform. The company was formerly known as SR Pharma plc and changed its name to Silence Therapeutics plc in May 2007. Silence Therapeutics plc is headquartered in London, the United Kingdom.

How the Company Makes Money

Silence Therapeutics generates revenue primarily through collaborative agreements, licensing deals, and milestone payments associated with its RNAi platform. The company partners with pharmaceutical and biotechnology firms to co-develop therapies, leveraging its expertise in RNA interference technology. These partnerships often involve upfront payments, research funding, and potential milestone and royalty payments contingent upon the successful development and commercialization of new therapies. Additionally, Silence Therapeutics may receive revenue from licensing its technology to third parties, enabling them to use its RNAi platform for their own therapeutic developments.

Silence Therapeutics Financial Statement Overview

Summary

Silence Therapeutics is experiencing revenue growth, but profitability challenges persist due to negative EBIT and net income margins. The negative stockholders' equity and high liabilities signal financial instability, although substantial cash reserves provide some comfort. The negative free cash flow highlights ongoing cash challenges, despite the ability to secure financing.

Income Statement

Silence Therapeutics has demonstrated significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the company continues to face challenges with profitability, as evidenced by negative EBIT and net income margins. The consistent negative profit margins highlight a need for enhanced cost management or increased revenue to achieve profitability.

Balance Sheet

The company's balance sheet reveals a concerning negative stockholders' equity as of 2024, indicating financial instability. The debt-to-equity ratio is not favorable due to the negative equity, and although the company maintains substantial cash reserves, the high liabilities present a risk. Improving equity and managing liabilities are critical for financial health.

Cash Flow

Silence Therapeutics has managed significant financing cash flow, which supports its operations despite negative operating cash flow. The free cash flow has been consistently negative, reflecting ongoing cash challenges. However, the company's ability to secure financing offers some operational flexibility. Improving free cash flow is essential for sustainable growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
43.26M	25.38M	17.50M	12.41M	5.48M
	Gross Profit
31.45M	15.06M	6.62M	4.96M	1.72M
	EBIT
-63.32M	-49.60M	-48.59M	-45.81M	-35.85M
	EBITDA
-48.99M	-49.78M	-47.88M	-45.42M	-35.53M
	Net Income Common Stockholders
-45.31M	-43.27M	-40.49M	-39.41M	-32.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
147.33M	54.03M	71.14M	73.54M	37.45M
	Total Assets
202.63M	93.82M	107.50M	96.19M	85.97M
	Total Debt
117.00K	272.00K	446.00K	137.00K	341.00K
	Net Debt
-121.21M	-53.76M	-54.37M	-73.40M	-27.11M
	Total Liabilities
68.61M	76.77M	85.43M	87.67M	76.91M
	Stockholders Equity
-134.02M	17.05M	22.07M	8.53M	9.06M
Cash Flow		Free Cash Flow
-67.85M	-39.40M	-45.90M	5.47M	-11.29M
	Operating Cash Flow
-67.64M	-39.35M	-45.46M	6.81M	-10.78M
	Investing Cash Flow
-21.97M	16.43M	-16.54M	8.68M	9.62M
	Financing Cash Flow
142.09M	25.16M	43.05M	30.71M	15.43M

Silence Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLN, the sentiment is Negative. The current price of 3.62 is below the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.77, and below the 200-day MA of 13.06, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLN.

Silence Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	68 Neutral	$144.91B	18.55	9.05%	6.46%	8.77%	272.80%
SRPT	67 Neutral	$7.41B	32.02	19.71%	―	52.97%	―
ALNY	59 Neutral	$36.86B	―	-414.62%	―	22.97%	38.54%
Sector *	49 Neutral	$6.90B	0.78	-53.24%	2.46%	20.86%	1.26%
MRNA	48 Neutral	$13.06B	―	-28.77%	―	-52.75%	25.00%
SLN	47 Neutral	$162.84M	―	-99.23%	―	-40.10%	-16.60%
ARWR	47 Neutral	$2.03B	―	-600.68%	―	-98.62%	-86.21%

Silence Therapeutics Corporate Events

Silence Therapeutics Extends Cash Runway to 2027

Silence Therapeutics reported its financial results for the year ending December 31, 2024, highlighting strong clinical execution and pipeline advancements. The company plans to prioritize investment in siRNA programs targeting rare conditions, with a focus on the divesiran program for polycythemia vera (PV) and the zerlasiran program for cardiovascular disease. Silence ended the year with $147 million in cash, and its decision to delay the zerlasiran Phase 3 study until a partner is secured extends its cash runway into 2027. The company received positive regulatory feedback for the zerlasiran study design and anticipates full enrollment in the SANRECO Phase 2 study of divesiran by the end of 2025.

Silence Therapeutics to Transition to U.S. Issuer Status

Silence Therapeutics will transition to filing reports as a U.S. domestic issuer starting January 1, 2025, which entails using more detailed and prompt SEC forms compared to those for a foreign private issuer. This change reflects the company’s growth and could impact its transparency and engagement with stakeholders, as it also utilizes multiple channels to disseminate material information broadly.