Third Harmonic Bio, Inc. (THRD) AI Stock Analysis

• Market Cap: $156.51M
• Dividend Yield: N/A
• Average Volume (3M): 363.19K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: N/A
• EPS Growth: -14.76%
• Country: US
• Employees: 53
• Sector: Healthcare
• Sector Strength: 62
• Industry: Biotechnology
• EPS (TTM): -1.08
• Shares Outstanding: 45,103,897
• 10 Day Avg. Volume: 337,175
• 30 Day Avg. Volume: 363,187
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.80
• 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: $5.63
• Price Target Upside: 67.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Third Harmonic Bio, Inc.'s overall stock score reflects a combination of strong financial stability due to high equity and low debt, countered by significant operational challenges, including lack of revenue and reliance on financing. The technical analysis indicates a bearish trend, and the recent restructuring plan adds to the uncertainty about the company's operational effectiveness and future growth prospects.

Positive Factors

Financial Stability

Third Harmonic ended the fourth quarter of 2024 with $285 million in cash, which is expected to support operations at least through 2026.

Research and Development

THB335 demonstrated strong pharmacokinetics and pharmacodynamics with deep serum tryptase reductions.

Negative Factors

Safety Concerns

Safety concerns from Phase 1 data, including reductions in hemoglobin and neutrophils, likely limit the use of higher doses of THB335.

Stock Downgrade

The stock rating for THRD has been downgraded to Hold due to a lack of clarity on the development path for THB335.

Strategic Uncertainty

There is uncertainty regarding the future development of THB335 and the company's strategic direction.

Third Harmonic Bio, Inc. Business Overview & Revenue Model

Company Description

Third Harmonic Bio, Inc. (THRD) is a biopharmaceutical company focused on the discovery and development of innovative therapies for the treatment of allergic and inflammatory diseases. Leveraging its expertise in immunology and drug development, the company aims to address unmet medical needs by creating targeted therapies that modulate specific pathways involved in allergic and inflammatory responses.

How the Company Makes Money

Third Harmonic Bio, Inc. generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company may engage in collaborations and partnerships with other pharmaceutical firms to co-develop or license its therapies, which can provide milestone payments and royalties based on sales. Additionally, the company might receive funding through grants or research collaborations with academic institutions and government entities. Revenue is typically reinvested into research and development to advance its drug pipeline and bring new treatments to market.

Third Harmonic Bio, Inc. Financial Statement Overview

Summary

Third Harmonic Bio, Inc. shows strong financial stability with high equity and low debt, scoring 75 on the balance sheet. However, the lack of revenue results in a low income statement score of 20, and cash flow challenges are reflected in a score of 30. The company relies heavily on financing rather than operational revenue, which is a concern for long-term sustainability.

Income Statement

The company has consistently reported zero revenue over the years, indicating no operational income. The net income improved from a negative position to a positive $45.5 million in 2024, primarily due to cost management or financing activities rather than operational growth.

Balance Sheet

The company has a robust equity position with $285 million in stockholders' equity in 2024, and a low debt level with a debt-to-equity ratio of 0.011. The equity ratio is very high, indicating strong financial stability. However, the reliance on equity over operational revenue could be a potential risk.

Cash Flow

Operating cash flow remains negative, highlighting operational challenges. However, free cash flow improved significantly in 2024, driven by financing activities. The company relies heavily on financing to sustain operations, which may not be sustainable in the long term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-35.00K	-38.00K	0.00	0.00
	EBIT
58.87M	-43.95M	-37.71M	-19.00M	-11.12M
	EBITDA
58.87M	-30.79M	-35.12M	-10.61M	-1.69M
	Net Income Common Stockholders
45.47M	-30.82M	-37.71M	-29.61M	-12.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
285.06M	269.07M	288.88M	128.28M	8.28M
	Total Assets
294.61M	277.71M	298.68M	129.16M	8.43M
	Total Debt
3.21M	3.95M	4.34M	0.00	0.00
	Net Debt
-281.86M	-265.12M	-284.54M	-128.28M	-8.28M
	Total Liabilities
9.46M	8.63M	9.61M	175.87M	26.79M
	Stockholders Equity
285.15M	269.08M	289.07M	-46.71M	-18.36M
Cash Flow		Free Cash Flow
-34.51M	-20.59M	-34.95M	-15.75M	-9.19M
	Operating Cash Flow
-34.50M	-20.43M	-34.92M	-15.75M	-9.19M
	Investing Cash Flow
-10.00K	-169.00K	-36.00K	0.00	0.00
	Financing Cash Flow
50.51M	799.00K	195.99M	135.75M	10.82M

Third Harmonic Bio, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRD, the sentiment is Neutral. The current price of 3.36 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.97, and below the 200-day MA of 10.08, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 35.93 is Neutral, neither overbought nor oversold. The STOCH value of 38.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THRD.

Third Harmonic Bio, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKRO	60 Neutral	$3.08B	―	-39.22%	―	―	-31.37%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
THRD	43 Neutral	$156.51M	―	-16.41%	―	―	-14.76%
IMVT	43 Neutral	$2.90B	―	-74.17%	―	―	-43.10%
ALXO	38 Underperform	$33.26M	―	-88.91%	―	―	30.37%
IGMS	29 Underperform	$68.74M	―	-155.76%	―	25.77%	32.56%
CABA	28 Underperform	$67.69M	―	-59.64%	―	―	-40.59%

Third Harmonic Bio, Inc. Corporate Events

Third Harmonic Bio Advances THB335 for Inflammatory Diseases

Third Harmonic Bio, Inc. has released a corporate presentation detailing their focus on advancing THB335, a novel treatment for mast cell-mediated inflammatory diseases. The presentation highlights the potential of THB335 to address unmet needs in conditions like chronic spontaneous urticaria, emphasizing its efficacy and convenience over existing treatments. The company is in the early stages of development, with THB335 showing promise in Phase 1 trials, but faces risks typical of early-stage biotech firms, including the need for additional funding and regulatory hurdles.

Third Harmonic Bio, Inc. Announces Restructuring Plan

On February 11, 2025, Third Harmonic Bio, Inc. announced a restructuring plan aimed at reducing operating costs and aligning its workforce with its strategic research and development goals. This plan involves reducing the workforce by approximately 27 employees, or 50%, with severance benefits contingent upon acceptance of a severance agreement, and is expected to incur around $2.3 million in severance and exit costs. After these restructuring costs and other expenses, the company expects to have cash and equivalents of $262 million to $267 million by June 30, 2025.