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ARS Pharmaceuticals (SPRY)
NASDAQ:SPRY
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ARS Pharmaceuticals
(NASDAQ:SPRY)
59Neutral
Positive Factors
Insurance Coverage
ARS has made significant progress on access and insurance coverage, securing favorable decisions from several major plans, including Express Scripts, Cigna Healthcare, OptumRx, Navitus Health Systems, and Tricare.
Market Penetration
Eligible schools could receive neffy 1 mg upon availability, which is a positive sign for market penetration.
Product Launch
Plans to roll out a DTC campaign for neffy as early as May should synergize to enhance market awareness and engagement.
Negative Factors
Adoption Barriers
Two main barriers to near-term adoption of neffy are access and education/awareness, as it requires broad access and low copays to achieve wider adoption.
Logistical Hurdles
Current prior authorization requirements have been a logistical hurdle for some prescribers of neffy.
ARS Pharmaceuticals (SPRY) vs. S&P 500 (SPY)
Market Cap
$1.21B
Dividend YieldN/A
Average Volume (3M)1.60M
Price to Earnings (P/E)161.1
Beta (1Y)2.34
Revenue Growth297063.33%
EPS GrowthN/A
CountryUS
Employees26
SectorHealthcare
Sector Strength76
IndustryBiotechnology
Share Statistics
EPS (TTM)0.08
Shares Outstanding98,119,804
10 Day Avg. Volume2,221,331
30 Day Avg. Volume1,599,261
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)467.76
Price to Cash Flow (P/CF)-20.80
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
$32.50Price Target Upside162.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
ARS Pharmaceuticals Business Overview & Revenue Model
Company DescriptionSilverback Therapeutics Inc is a clinical-stage biopharmaceutical company. The company is focused on leveraging its ImmunoTAC technology platform to develop tissue targeted therapeutics for the treatment of cancer, chronic viral infections, and other serious diseases.
How the Company Makes MoneyARS Pharmaceuticals generates revenue primarily through the sale of its proprietary product, Neffy. The company seeks to capture a share of the allergy treatment market by offering a unique, non-invasive alternative to traditional epinephrine auto-injectors. Revenue is driven by direct sales to healthcare providers, pharmacies, and potentially through partnerships with distributors or other pharmaceutical companies. Additionally, ARS Pharmaceuticals may engage in licensing agreements or strategic collaborations to expand the reach and adoption of their products globally. Their revenue model relies on market penetration, product acceptance among patients and healthcare professionals, and competitive pricing strategies.
ARS Pharmaceuticals Financial Statement Overview
Summary
ARS Pharmaceuticals shows strong revenue growth but struggles with profitability and cash flow. The balance sheet is a strength with low debt, but persistent net losses and cash flow deficits highlight the need for improved operational efficiencies.Income Statement
ARS Pharmaceuticals shows a volatile revenue trajectory with the latest TTM (Trailing-Twelve-Months) revenue growth rate of 8343.33%, indicating a significant revenue increase. However, the company's profitability metrics are concerning, with a negative net profit margin of -1935.59% in the TTM and consistent losses across periods. Despite a positive gross profit margin of 93.98% in the TTM, the substantial negative EBIT and EBITDA margins reflect operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet of ARS Pharmaceuticals is strong in terms of equity with a positive stockholders' equity of $200.98 million as of the latest TTM. The debt-to-equity ratio is low at 0.0005, indicating low leverage. However, the company has experienced a decline in total assets over time, and the ROE is negative due to net losses, signaling poor returns for shareholders.60
Neutral
Cash Flow
ARS Pharmaceuticals shows challenges in cash flow management with negative free cash flows and operating cash flows in the TTM. The free cash flow to net income ratio is positive due to net losses being less negative compared to free cash flow, but the company continues to burn cash, posing sustainability risks. Positive financing cash flow indicates reliance on external funding.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.54M | 30.00K | 1.32M | 5.51M | 17.84M | 0.00 | Gross Profit |
| 2.38M | -43.00K | -16.00M | -14.77M | 3.77M | -1.55M | EBIT |
| -60.51M | -67.52M | -35.52M | -19.45M | -469.00K | -24.07M | EBITDA |
| -60.47M | -67.45M | -35.52M | -19.24M | -463.00K | -22.52M | Net Income Common Stockholders |
| -49.10M | -54.37M | -33.99M | -20.24M | -1.06M | -23.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 374.20M | 228.36M | 274.38M | 60.06M | 24.52M | 9.98M | Total Assets |
| 382.20M | 233.19M | 281.44M | 61.45M | 26.41M | 15.65M | Total Debt |
| 3.48M | 274.00K | 481.00K | 9.03M | 10.02M | 15.62M | Net Debt |
| -370.73M | -70.70M | -210.04M | -51.03M | -14.50M | 5.64M | Total Liabilities |
| 13.65M | 2.43M | 8.55M | 92.72M | 40.46M | 21.25M | Stockholders Equity |
| 368.55M | 230.76M | 272.89M | -31.27M | -14.05M | -5.60M |
| Cash Flow | Free Cash Flow | ||||
| -46.03M | -59.44M | -40.28M | -17.62M | 8.15M | -18.99M | Operating Cash Flow |
| -45.86M | -59.27M | -40.08M | -17.56M | 9.07M | -18.90M | Investing Cash Flow |
| 21.70M | -87.18M | -199.00K | -55.00K | -917.00K | -96.00K | Financing Cash Flow |
| 3.29M | 6.90M | 190.73M | 53.16M | 5.10M | 8.61M |
ARS Pharmaceuticals Technical Analysis
Positive
12.36
Price Trends
12.02
Positive
12.71
Negative
12.28
Positive
Market Momentum
0.21
Negative
54.16
Neutral
59.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRY, the sentiment is Positive. The current price of 12.36 is above the 20-day moving average (MA) of 11.26, above the 50-day MA of 12.02, and above the 200-day MA of 12.28, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRY.
ARS Pharmaceuticals Risk Analysis
ARS Pharmaceuticals disclosed 72 risk factors in its most recent earnings report. ARS Pharmaceuticals 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
ARS Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $360.83M | 20.79 | 531.78% | ― | 53.38% | ― | |
59 Neutral | $1.21B | 161.15 | 3.28% | ― | 297063.33% | ― | |
49 Neutral | $6.95B | 0.67 | -53.43% | 2.47% | 22.78% | 1.44% | |
47 Neutral | $2.03B | ― | -600.68% | ― | -98.62% | -86.21% | |
47 Neutral | $698.14M | ― | -23.34% | ― | 47.92% | 17.84% | |
43 Neutral | $2.71B | ― | -27.85% | ― | ― | -10.19% | |
26 Underperform | $37.77M | ― | 260.68% | ― | -33.81% | 23.02% |
* Healthcare Sector Average
Performance Comparison
SPRY
ARS Pharmaceuticals
12.36
3.23
35.38%
AGEN
Agenus
1.61
-9.56
-85.59%
ARWR
Arrowhead Pharmaceuticals
14.80
-13.09
-46.93%
RIGL
Rigel
20.20
5.80
40.28%
PRTA
Prothena
12.97
-12.43
-48.94%
XENE
Xenon
35.34
-7.36
-17.24%
ARS Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: 6.09% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive trajectory for ARS Pharmaceuticals, highlighted by the successful launch and growing adoption of neffy, substantial payer coverage progress, and strong financial positioning. However, challenges with prior authorizations and delays in some payer formulary additions present obstacles that need addressing. Overall, the company is well-placed for significant growth, with strategies to overcome existing challenges.Highlights
Successful Launch of Neffy
In September, ARS successfully launched neffy 2 milligrams in the United States and secured FDA approval for the 1 milligram dose for children weighing 15 to less than 30 kilograms.
Strong Payer Coverage Progress
As of April 1, over 51% of commercially insured patients can get neffy without prior authorization, with expectations of over 80% coverage by early summer.
Significant Revenue and Growth
Neffy generated $7.3 million in net product revenue since its launch, reflecting strong early adoption and prescribing by thousands of health care providers.
Positive Clinical Feedback
At the 2025 Quad AI meeting, numerous physicians shared successful real-world experiences with neffy, reinforcing its acceptance as the new standard of care.
Strong Financial Position
ARS ended the year with over $314 million in cash and equivalents, allowing for further investment in neffy's commercialization.
Lowlights
Prior Authorization Challenges
The need for prior authorization is a significant barrier, limiting physicians' ability to prescribe neffy, especially given the acute nature of allergic reactions.
Delayed Formulary Additions
Formulary additions for major payers like CVS Caremark and others are not expected until July 1, potentially impacting early market penetration.
Uncertainty in Immediate Revenue Impact
The impact of payer coverage on immediate sales is still uncertain, as the lag between gaining coverage and increased prescribing is not yet well-defined.
Company Guidance
In the recent call, ARS Pharmaceuticals announced significant progress and guidance for the upcoming year. The company reported $7.3 million in net product revenue for neffy since its U.S. launch, with expectations for a strong sales trajectory as they aim for at least 80% commercial coverage by summer 2025. Neffy addresses a $3 billion market opportunity with 6.5 million U.S. patients prescribed epinephrine, and ARS aims to capture additional market segments worth over $7 billion. The recent FDA approval for the 1 mg dose, targeting children weighing 15 to less than 30 kg, is expected to boost market penetration, especially during the back-to-school season. ARS has secured payer agreements with major organizations like Caremark, UnitedHealthcare, and OptumRx, ensuring no prior authorization is needed for 51% of commercially insured patients, with plans to reach 80% by early summer. The company holds a robust cash position of over $314 million, supporting a planned $40-50 million direct-to-consumer campaign to increase awareness and adoption. Global expansion efforts are also underway, with submissions and approvals anticipated in key markets including the EU, UK, Canada, Japan, and China.ARS Pharmaceuticals Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
ARS Pharmaceuticals Highlights Success and Plans for 2025
Positive
Jan 13, 2025
ARS Pharmaceuticals announced preliminary financial results for the fourth quarter of 2024 and outlined its objectives for 2025, emphasizing the success of neffy, their intranasal epinephrine product. The company reported approximately $6.5 million in net product revenue for the quarter, with plans to expand commercial access and consumer awareness, aiming for over 80% insurance coverage by the third quarter of 2025. Notably, neffy has been added to major pharmacy formularies and a direct-to-consumer marketing campaign is set to launch in May 2025 to increase brand recognition and patient engagement.
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.