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Springworks Therapeutics (SWTX)
NASDAQ:SWTX
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Springworks Therapeutics
(NASDAQ:SWTX)
58Neutral
Positive Factors
Financial Performance
SWTX reported preliminary 4Q24 and FY24 net product revenue slightly above consensus, highlighting steady growth for Ogsiveo and a fundamentally positive outlook.
Potential Acquisition
Merck KGaA has confirmed discussions with Springworks on a potential acquisition, increasing investor interest.
Regulatory Approvals
The FDA announced regulatory U.S. approval of mirdametinib for adult and pediatric patients with neurofibromatosis type 1.
Negative Factors
Commercialization Risks
Risks include the inability to successfully commercialize nirogacestat and/or mirdametinib, and the failure to expand usage of both within multiple specialty oncology niches.
Financial Losses
The company recorded a net loss of $3.48 per share, which was wider than the original net loss estimate due to greater-than-anticipated operating expenses.
Operating Expenses
The company recorded a net loss wider than expected due to greater-than-anticipated operating expenses, highlighting financial challenges.
Springworks Therapeutics (SWTX) vs. S&P 500 (SPY)
Market Cap
$3.55B
Dividend YieldN/A
Average Volume (3M)2.25M
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth3417.33%
EPS Growth30.06%
CountryUS
Employees368
SectorHealthcare
Sector Strength71
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.48
Shares Outstanding74,935,850
10 Day Avg. Volume1,551,606
30 Day Avg. Volume2,254,410
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)19.51
Price to Cash Flow (P/CF)-31.70
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
$71.71Price Target Upside51.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Springworks Therapeutics Business Overview & Revenue Model
Company DescriptionSpringworks Therapeutics (SWTX) is a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients suffering from severe rare diseases and cancer. The company operates in the biotechnology and pharmaceutical sectors and is committed to advancing innovative therapies that target genetically defined cancers and other rare conditions. Springworks' core product pipeline includes investigational therapies that are in various stages of clinical development, aiming to address unmet medical needs in oncology and other therapeutic areas.
How the Company Makes MoneySpringworks Therapeutics makes money primarily through the development and commercialization of its investigational therapies. The company's revenue model is centered on advancing its drug candidates through clinical trials and securing regulatory approval to bring these therapies to market. Key revenue streams include potential sales of approved drugs, milestone payments, and royalties from partnerships or collaborations with other pharmaceutical companies. Additionally, Springworks may engage in licensing agreements where they allow other companies to develop or commercialize their products in exchange for financial compensation. Significant partnerships with larger pharmaceutical companies can also contribute to its earnings, providing funding and resources to support its research and development activities.
Springworks Therapeutics Financial Statement Overview
Summary
Springworks Therapeutics shows growth in revenue but faces challenges in achieving profitability. The balance sheet is relatively stable with low leverage, but declining equity ratios and persistent net losses are concerning. Cash flow remains negative, highlighting the need for improved cash management.Income Statement
Springworks Therapeutics has experienced volatile revenue trends, with significant revenue growth from 2023 to 2024. However, persistent negative net income and EBIT margins indicate ongoing profitability challenges. The EBIT and EBITDA margins are deeply negative, reflecting high operating expenses relative to revenue.35
Negative
Balance Sheet
The company's debt-to-equity ratio remains low, indicating minimal leverage. However, the return on equity is negative due to net losses, and the equity ratio has decreased over time, reflecting a weakening asset base relative to equity. The strong cash position suggests liquidity strength, though declining equity ratios highlight potential financial risks.45
Neutral
Cash Flow
Springworks Therapeutics has negative operating cash flow, indicating cash consumption in operations. Despite free cash flow improvement from 2023 to 2024, it remains negative, posing concerns about cash sustainability. The operating cash flow to net income ratio is not favorable, reflecting inefficiencies in converting revenue to cash.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 191.59M | 5.45M | 6.15M | 0.00 | 35.00M | Gross Profit |
| 179.04M | 5.03M | 4.25M | -490.00K | 34.65M | EBIT |
| -278.13M | -343.01M | -280.67M | -173.47M | -46.32M | EBITDA |
| -278.13M | -341.35M | -280.67M | -172.98M | -45.98M | Net Income Common Stockholders |
| -258.13M | -325.10M | -274.16M | -173.21M | -44.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 307.99M | 479.20M | 597.01M | 373.50M | 508.48M | Total Assets |
| 587.28M | 725.79M | 630.24M | 452.49M | 576.19M | Total Debt |
| 7.91M | 7.06M | 5.25M | 1.29M | 2.73M | Net Debt |
| -61.84M | -169.00M | -62.24M | -102.67M | -144.35M | Total Liabilities |
| 106.17M | 99.57M | 72.05M | 30.10M | 19.13M | Stockholders Equity |
| 481.10M | 626.22M | -569.93M | 422.40M | 557.06M |
| Cash Flow | Free Cash Flow | |||
| -180.05M | -230.18M | -171.76M | -129.89M | -32.83M | Operating Cash Flow |
| -175.60M | -222.79M | -161.56M | -127.88M | -32.19M | Investing Cash Flow |
| 64.55M | 34.75M | -215.60M | 83.59M | -418.83M | Financing Cash Flow |
| 4.76M | 296.64M | 340.70M | 1.16M | 270.49M |
Springworks Therapeutics Technical Analysis
Neutral
47.41
Price Trends
47.54
Negative
42.47
Positive
39.15
Positive
Market Momentum
-0.54
Positive
44.48
Neutral
22.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWTX, the sentiment is Neutral. The current price of 47.41 is below the 20-day moving average (MA) of 49.74, below the 50-day MA of 47.54, and above the 200-day MA of 39.15, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWTX.
Springworks Therapeutics Risk Analysis
Springworks Therapeutics disclosed 82 risk factors in its most recent earnings report. Springworks Therapeutics 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
Springworks Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $3.55B | ― | -46.62% | ― | 3417.33% | 30.06% | |
55 Neutral | $1.69B | 21.27 | 7.21% | ― | ― | ― | |
52 Neutral | $5.67B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 19.94% | 1.20% | |
45 Neutral | $569.32M | ― | -42.91% | ― | ― | 2.90% | |
42 Neutral | $31.67M | ― | 60.38% | ― | 5.59% | 83.59% | |
29 Underperform | $74.12M | ― | -155.76% | ― | 25.77% | 32.56% |
* Healthcare Sector Average
Performance Comparison
SWTX
Springworks Therapeutics
47.41
-0.21
-0.44%
FGEN
FibroGen
0.31
-2.05
-86.86%
BPMC
Blueprint Medicines
88.72
-7.70
-7.99%
GLPG
Galapagos
25.46
-7.02
-21.61%
KURA
Kura Oncology
7.05
-14.77
-67.69%
IGMS
IGM Biosciences
1.24
-8.21
-86.88%
Springworks Therapeutics Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -14.93% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call displayed a strong performance for OGSIVEO with significant revenue growth and positive market trends. Expansion efforts into Europe and the promising outlook for mirdametinib contribute to a positive sentiment. However, challenges with the blister pack transition and summer seasonality were noted as short-term hurdles.Highlights
Strong Revenue Growth for OGSIVEO
Generated $49.3 million in net product revenue in Q3, representing a 23% growth quarter-over-quarter, driven by robust demand in the U.S. market.
Positive Market Trends and Physician Adoption
High enthusiasm for OGSIVEO with 90% of prescribers likely to use it as a frontline treatment. 65% of patients transitioned to new blister packs, improving adherence.
Significant Opportunity with Mirdametinib
NDA for mirdametinib granted priority review with a potential for approval in early 2025. Strong efficacy and safety profile reported in pivotal trials.
Expansion into European Markets
EU regulatory reviews for OGSIVEO and mirdametinib underway with anticipated approvals in 2025. European headquarters established and commercial leadership onboarded.
Robust Financial Position
Strong balance sheet with $498 million in cash and marketable securities, expected to fund operations through profitability by the first half of 2026.
Lowlights
Challenges with Blister Pack Transition
Transition to new blister packs caused short-term delays in prescriptions, impacting July's performance due to the need for new prescriptions.
Summer Seasonality Impact
Experienced summer seasonality that impacted new patient starts in July, although demand returned in August and September.
Limited Visibility on Dose Reductions
Incomplete visibility into dose reductions due to ongoing transition to blister packs, with a majority of patients still on the 150 mg dose.
Company Guidance
During the third quarter of 2024 earnings call for SpringWorks Therapeutics, several key metrics were discussed regarding the company's performance and future outlook. Notably, OGSIVEO, a treatment for desmoid tumors, generated $49.3 million in net product revenue, marking a 23% growth quarter-over-quarter. The enthusiasm for OGSIVEO was evident in the increasing demand from both new and existing patients, with over 800 unique patients filling prescriptions in September. The company introduced 150-milligram and 100-milligram strength tablets in blister packaging, which improved patient adherence and convenience. Additionally, the ICD-10 data indicated a desmoid tumor patient population larger than initially estimated, with 10,000 unique patients identified in the U.S. using the new diagnosis code. The company is also preparing for the potential FDA approval of mirdametinib for NF1-PN by its February 28, 2025, PDUFA date, aiming to serve an estimated 40,000 patients in the U.S. These metrics underscore SpringWorks' strong commercial execution and set the stage for continued growth in the upcoming quarters.Springworks Therapeutics Corporate Events
Product-Related Announcements
Springworks Therapeutics Gains FDA Approval for GOMEKLI
Positive
Feb 12, 2025
On February 11, 2025, SpringWorks Therapeutics announced the FDA approval of GOMEKLI™ (mirdametinib), a treatment for neurofibromatosis type 1 with symptomatic plexiform neurofibromas, marking it as the first approved medicine for the condition. Based on Phase 2b trial results, GOMEKLI demonstrated significant tumor volume reduction and a manageable safety profile, offering a new therapeutic option for a condition affecting approximately 40,000 people in the US. This approval also granted SpringWorks a rare pediatric disease priority review voucher, further strengthening its market position in treating severe rare diseases.
Business Operations and StrategyFinancial Disclosures
SpringWorks Therapeutics Reports Strong 2024 Financial Results
Positive
Jan 13, 2025
SpringWorks Therapeutics announced its preliminary financial results for the fourth quarter and full year 2024, reporting U.S. net product revenue for OGSIVEO® (nirogacestat) at $61.5 million and $172.0 million respectively. The company ended 2024 with approximately $462 million in cash and expects its financial position to support operations through to profitability by early 2026. SpringWorks is advancing its robust pipeline, including securing an exclusive global license for a novel therapy targeting PP2A mutations in uterine cancer, and plans further expansions and regulatory approvals in 2025, signaling growth in its market presence and impact on patient care.
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.