Sonnet BioTherapeutics Holdings (SONN) AI Stock Analysis

• Market Cap: $4.26M
• Dividend Yield: N/A
• Average Volume (3M): 62.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 674.14%
• EPS Growth: 89.05%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -11.31
• Shares Outstanding: 3,065,701
• 10 Day Avg. Volume: 35,898
• 30 Day Avg. Volume: 62,241
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.26
• Price to Cash Flow (P/CF): -0.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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 Business Overview & Revenue Model

Company Description

Sonnet 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 Money

Sonnet 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

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

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

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.10M	18.63K	147.81K	349.94K	483.63K	0.00
	Gross Profit
-3.48M	18.63K	-11.67M	256.69K	-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 Sheet		Cash, Cash Equivalents and Short-Term Investments
4.86M	149.46K	2.27M	3.05M	27.62M	7.35M
	Total Assets
7.18M	2.77M	5.43M	5.83M	28.99M	7.99M
	Total Debt
110.96K	130.86K	203.91K	255.99K	125.88K	353.25K
	Net Debt
-4.75M	-18.59K	-2.07M	-2.80M	-27.50M	-7.00M
	Total Liabilities
3.15M	3.26M	5.66M	8.37M	6.73M	4.97M
	Stockholders Equity
4.04M	-485.74K	-225.98K	-2.54M	22.26M	3.02M
Cash Flow		Free 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
10.28M	6.49M	21.01M	4.01M	42.83M	23.01M

Sonnet BioTherapeutics Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
CLRB	43 Neutral	$14.41M	―	-474.63%	―	―	50.73%
SONN	38 Underperform	$4.26M	―	-285.35%	―	674.14%	89.05%
ADCT	37 Underperform	$166.31M	―	123.38%	―	-42.30%	-9.33%
CYCC	36 Underperform	$3.52M	―	-807.39%	―	-80.98%	62.27%
MTEM	36 Underperform	$3.29K	―	-192.88%	―	-49.41%	78.46%

Sonnet BioTherapeutics Holdings Corporate Events

Sonnet BioTherapeutics Highlights Promising SON-1010 Data

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.

Sonnet BioTherapeutics Advances Antibody Drug Conjugate Platform

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.

Sonnet BioTherapeutics Secures EU Patent for FHAB Technology

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.

Sonnet BioTherapeutics Expands Phase 1 Study for SON-1010

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.