tiprankstipranks
Sonnet BioTherapeutics Holdings (SONN)
NASDAQ:SONN
US Market

Sonnet BioTherapeutics Holdings (SONN) AI Stock Analysis

Compare
510 Followers

Top Page

SO

Sonnet BioTherapeutics Holdings

(NASDAQ:SONN)

38Underperform
Sonnet BioTherapeutics is currently in a challenging financial position with consistent losses and negative cash flows. The stock's technical indicators show bearish momentum. However, recent corporate events reveal potential growth opportunities in oncology, offering some optimism for the future.

Sonnet BioTherapeutics Holdings (SONN) vs. S&P 500 (SPY)

Sonnet BioTherapeutics Holdings Business Overview & Revenue Model

Company DescriptionSonnet BioTherapeutics Holdings (SONN) is a biotechnology company focused on the development of innovative biologic drugs. The company specializes in creating targeted biologic therapeutics, utilizing its proprietary platform technology to enhance the pharmacokinetics and pharmacodynamics of therapeutic proteins. Sonnet's primary aim is to address significant unmet medical needs across various therapeutic areas, including oncology and autoimmune diseases.
How the Company Makes MoneySonnet BioTherapeutics generates revenue primarily through the development and commercialization of its proprietary biologic drug candidates. The company engages in strategic partnerships and collaborations with other pharmaceutical and biotechnology companies to advance its drug pipeline and share development costs. These partnerships often include milestone payments, licensing fees, and royalties on potential sales of co-developed products. Additionally, Sonnet may receive funding from grants or research collaborations, which contribute to its financial resources for ongoing research and development efforts.

Sonnet BioTherapeutics Holdings Financial Statement Overview

Summary
Sonnet BioTherapeutics Holdings faces significant financial challenges, marked by consistent losses, negative cash flows, and fluctuations in equity. The company struggles with profitability and cash management, relying on financing to sustain operations, reflecting a precarious financial position typical of early-stage biotech firms.
Income Statement
30
Negative
Sonnet BioTherapeutics Holdings shows weak revenue generation with a marginal increase to $1.1 million in TTM, but persistent negative gross profit margins and net losses indicate operational inefficiencies. The EBIT and EBITDA margins remain highly negative, reflecting ongoing challenges in achieving profitability. Revenue growth is inconsistent, highlighting volatility in income.
Balance Sheet
25
Negative
The company's balance sheet indicates financial instability, with stockholders' equity fluctuating into negative territory in recent periods, signaling potential insolvency risks. The debt-to-equity ratio is skewed due to negative equity, while total assets are not effectively leveraged to generate profits, as reflected by a low equity ratio.
Cash Flow
35
Negative
Despite substantial financing cash flows, Sonnet BioTherapeutics continues to experience negative operating and free cash flows, signaling cash burn issues. The operating cash flow to net income ratio is unfavorable, indicating poor cash conversion, although financing activities provide temporary relief.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
1.10M18.63K147.81K349.94K483.63K0.00
Gross Profit
-3.48M18.63K-11.67M256.69K-16.15M-58.31K
EBIT
-13.42M-11.85M-18.79M-29.67M-25.09M-24.24M
EBITDA
-13.38M-11.85M-18.72M-29.58M-24.99M-24.24M
Net Income Common Stockholders
-9.43M-7.44M-18.83M-29.77M-25.01M-31.06M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.86M149.46K2.27M3.05M27.62M7.35M
Total Assets
7.18M2.77M5.43M5.83M28.99M7.99M
Total Debt
110.96K130.86K203.91K255.99K125.88K353.25K
Net Debt
-4.75M-18.59K-2.07M-2.80M-27.50M-7.00M
Total Liabilities
3.15M3.26M5.66M8.37M6.73M4.97M
Stockholders Equity
4.04M-485.74K-225.98K-2.54M22.26M3.02M
Cash FlowFree Cash Flow
-8.44M-8.61M-21.79M-28.58M-22.56M-15.69M
Operating Cash Flow
-8.43M-8.61M-21.34M-27.69M-22.55M-15.61M
Investing Cash Flow
-12.00K-12.00K-443.25K-896.48K-3.62K-76.18K
Financing Cash Flow
10.28M6.49M21.01M4.01M42.83M23.01M

Sonnet BioTherapeutics Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.39
Price Trends
50DMA
1.58
Negative
100DMA
2.42
Negative
200DMA
5.06
Negative
Market Momentum
MACD
-0.06
Positive
RSI
37.25
Neutral
STOCH
36.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONN, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.58, and below the 200-day MA of 5.06, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 36.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONN.

Sonnet BioTherapeutics Holdings Risk Analysis

Sonnet BioTherapeutics Holdings disclosed 66 risk factors in its most recent earnings report. Sonnet BioTherapeutics Holdings 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

Sonnet BioTherapeutics Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
$6.90B0.02-54.05%2.46%24.91%-3.14%
43
Neutral
$14.41M-474.63%50.73%
38
Underperform
$4.26M-285.35%674.14%89.05%
37
Underperform
$166.31M123.38%-42.30%-9.33%
36
Underperform
$3.52M-807.39%-80.98%62.27%
36
Underperform
$3.29K-192.88%-49.41%78.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SONN
Sonnet BioTherapeutics Holdings
1.39
-11.97
-89.60%
CYCC
Cyclacel Pharmaceuticals
0.30
-2.20
-88.00%
MTEM
Molecular Templates
0.02
-2.74
-99.28%
CLRB
Cellectar Biosciences
0.32
-3.06
-90.53%
ADCT
ADC Therapeutics
1.85
-1.89
-50.53%

Sonnet BioTherapeutics Holdings Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Sonnet BioTherapeutics Highlights Promising SON-1010 Data
Positive
Feb 26, 2025

On February 26, 2025, Sonnet BioTherapeutics announced the presentation of data at the 2025 AACR IO Conference, highlighting the potential of their drug SON-1010 for treating solid tumors. The presentation showcased the company’s FHAB platform, which improves drug targeting and retention in tumors, potentially enhancing therapeutic outcomes. The data included ongoing trials of SON-1010 as a monotherapy and in combination with other treatments, showing promising results in patients with advanced solid tumors. These developments could significantly impact Sonnet’s positioning in the oncology field by addressing unmet needs and improving patient outcomes.

Product-Related AnnouncementsBusiness Operations and Strategy
Sonnet BioTherapeutics Advances Antibody Drug Conjugate Platform
Positive
Feb 19, 2025

On February 19, 2025, Sonnet BioTherapeutics announced advancements in its proprietary Antibody Drug Conjugate (ADC) platform, designed to address technical challenges in ADC development. The platform, now available for drug discovery partnerships, aims to produce multiple drug candidates. The initial proof-of-concept, SON-5010, demonstrated similar activity to existing treatments in preclinical studies, indicating potential for novel ADCs with flexible payloads and tumor targeting capabilities.

Product-Related AnnouncementsBusiness Operations and Strategy
Sonnet BioTherapeutics Secures EU Patent for FHAB Technology
Positive
Jan 28, 2025

On January 28, 2025, Sonnet BioTherapeutics announced that the European Patent Office granted a patent for its FHAB technology, which includes therapeutic fusion proteins for tumor targeting and extended pharmacokinetics. This EU patent, effective until 2038, significantly expands Sonnet’s global intellectual property portfolio, which now includes coverage in China, Japan, Russia, and New Zealand. The patent strengthens Sonnet’s market position by providing expanded global protection and differentiation from competitors. This development is seen as a milestone that validates the company’s FHAB platform, enhancing its competitive edge in the biotechnology industry.

Product-Related AnnouncementsBusiness Operations and Strategy
Sonnet BioTherapeutics Expands Phase 1 Study for SON-1010
Positive
Jan 21, 2025

On January 21, 2025, Sonnet BioTherapeutics announced the expansion of its Phase 1 SB101 clinical study to evaluate SON-1010 in combination with trabectedin in adult patients with advanced solid tumors, specifically targeting soft-tissue sarcomas. The expansion follows successful monotherapy dose escalation and aims to explore immune-oncology impacts at a maximum tolerated dose. The new cohort will assess the potential for enhanced progression-free survival and improved therapeutic outcomes for soft-tissue sarcoma patients. Enrollment is underway with results expected in late 2025, potentially positioning SON-1010 for a Phase 2 study and establishing a new treatment option for soft-tissue sarcoma.

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.