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Zevra Therapeutics, Inc. (ZVRA)
:ZVRA

Zevra Therapeutics (ZVRA) AI Stock Analysis

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Zevra Therapeutics

(NASDAQ:ZVRA)

56Neutral
Zevra Therapeutics faces significant financial challenges with declining revenue and high leverage. However, the successful launch of MIPLYFFA and strategic financial moves highlight potential for recovery. Technical indicators show moderate upward momentum, although valuation remains a concern due to negative profitability.
Positive Factors
Financial Performance
The company's balance sheet is now in its strongest position, supported by the $148M raised from the PRV sale.
Product Launch
The Miplyffa launch is progressing quickly with 109 patient enrollment forms submitted as well as all the US EAP participants, signaling early adoption.
Sales Performance
Sales of Miplyffa for Niemann-Pick Type C came in higher than expected, indicating strong market performance.
Negative Factors
Market Perception
ZVRA's rare disease-focused strategy is viewed as underappreciated by investors, suggesting potential growth opportunities.
Reimbursement Challenges
A third of Miplyffa patients have been approved for reimbursement, and while many commercial payers have not yet made decisions about a formal policy, the vast majority of patients are able to get reimbursed.

Zevra Therapeutics (ZVRA) vs. S&P 500 (SPY)

Zevra Therapeutics Business Overview & Revenue Model

Company DescriptionKemPharm, Inc. is a clinical-stage specialty pharmaceutical company, which engages in the discovery and development of proprietary prodrugs. It focuses in the treatment of serious medical conditions such as attention deficit hyperactivity disorder, pain, and other central nervous system disorders through its platform technology known as Ligand Activated Therapy. The company was founded by Christal M. M. Mickle and Travis C. Mickle on October 30, 2006 and is headquartered in Coralville, IA.
How the Company Makes MoneyZevra Therapeutics makes money through a revenue model centered on the development and commercialization of its proprietary drug candidates. The company generates revenue primarily through the sale of its approved therapies and milestone payments from collaboration and licensing agreements with other pharmaceutical companies. Additionally, Zevra Therapeutics may receive royalty payments based on sales of its licensed products. Strategic partnerships and collaborations play a significant role in the company's earnings, providing additional funding for research and development, as well as expanding the reach of its products in global markets.

Zevra Therapeutics Financial Statement Overview

Summary
Zevra Therapeutics shows declining revenue and increasing losses, with a high debt-to-equity ratio indicating leverage-related risks. Negative cash flows suggest difficulties in sustaining operations without external financing.
Income Statement
30
Negative
Zevra Therapeutics shows a concerning trend with declining total revenue, decreasing from $27.46M in 2023 to $23.61M in 2024. The gross profit margin is relatively healthy at 68.57% for 2024, but the company is struggling with profitability, as demonstrated by a negative net profit margin of -446.86% and an EBIT margin of -368.23%. Both EBIT and EBITDA margins are negative, indicating operational inefficiencies and high costs relative to revenue.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 1.52 in 2024, signaling significant leverage and potential financial risk. Stockholders' equity has decreased, and the return on equity is negative due to sustained net losses. However, the equity ratio stands at 22.26%, suggesting some asset backing through equity, though it has been declining over the years.
Cash Flow
25
Negative
Zevra Therapeutics reports negative free cash flow of -$69.67M in 2024, showing a deterioration from the previous year. Operating cash flow is also negative, reflecting challenges in generating cash from core operations. The free cash flow to net income ratio is less meaningful due to negative net income. Financial sustainability is currently a concern as the company heavily relies on financing activities to support cash needs.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.61M27.46M10.46M28.65M13.29M
Gross Profit
16.20M24.52M10.12M26.59M11.98M
EBIT
-87.00M-49.60M-24.84M7.73M-4.78M
EBITDA
-76.40M-48.60M-25.53M-7.89M-5.43M
Net Income Common Stockholders
-105.51M-46.05M-41.54M-8.55M-12.76M
Balance SheetCash, Cash Equivalents and Short-Term Investments
69.50M43.05M82.85M112.35M4.21M
Total Assets
178.13M172.33M115.53M132.94M11.21M
Total Debt
60.30M43.77M14.12M1.59M70.35M
Net Debt
26.51M716.00K-51.34M-110.76M66.14M
Total Liabilities
138.46M110.46M29.72M5.82M77.62M
Stockholders Equity
39.67M61.86M85.81M127.12M-66.41M
Cash FlowFree Cash Flow
-69.67M-33.83M-18.81M10.34M-1.97M
Operating Cash Flow
-69.67M-33.53M-18.72M10.44M-1.94M
Investing Cash Flow
-22.16M-17.39M-36.72M-15.52M-33.00K
Financing Cash Flow
82.11M28.46M8.35M113.11M2.74M

Zevra Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.35
Price Trends
50DMA
7.95
Positive
100DMA
8.33
Positive
200DMA
7.39
Positive
Market Momentum
MACD
0.07
Negative
RSI
59.24
Neutral
STOCH
80.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZVRA, the sentiment is Positive. The current price of 8.35 is above the 20-day moving average (MA) of 7.82, above the 50-day MA of 7.95, and above the 200-day MA of 7.39, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZVRA.

Zevra Therapeutics Risk Analysis

Zevra Therapeutics disclosed 65 risk factors in its most recent earnings report. Zevra 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

Zevra 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
79
Outperform
$2.92B12.8738.89%31.85%
68
Neutral
$11.04B33.6514.16%24.81%33.67%
64
Neutral
$129.62B-3.15%11.64%-114.72%
56
Neutral
$449.70M-207.84%-14.02%-72.44%
49
Neutral
$6.86B0.01-55.93%2.48%24.36%-2.88%
47
Neutral
$739.58M-23.34%47.92%17.84%
45
Neutral
$474.63M-63.37%-52.30%27.13%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZVRA
Zevra Therapeutics
8.35
2.39
40.10%
ACAD
ACADIA Pharmaceuticals
17.20
-1.52
-8.12%
NBIX
Neurocrine
111.50
-27.94
-20.04%
VRTX
Vertex Pharmaceuticals
513.76
102.38
24.89%
PRTA
Prothena
13.74
-11.35
-45.24%
SAGE
SAGE Therapeutics
8.02
-11.35
-58.60%

Zevra Therapeutics Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: 3.47% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as the successful launch and FDA approval of MIPLYFFA, along with record revenue and expansion plans. However, there were challenges with the slower than expected OLPRUVA launch and increased net loss. Overall, the positives outweigh the negatives due to the strong start of MIPLYFFA and financial stability.
Highlights
Successful Launch of MIPLYFFA
The launch of MIPLYFFA exceeded expectations with 109 patient enrollment forms received in the fourth quarter, marking a strong demand in the NPC community.
FDA Approval of MIPLYFFA
MIPLYFFA was approved by the FDA, becoming the first product in the U.S. for the treatment of Niemann-Pick Disease Type C (NPC).
Record Revenue
Zevra reported a record quarterly product revenue of $12 million in Q4 2024, with $10.1 million from MIPLYFFA.
Expansion Plans for MIPLYFFA
Plans to expand MIPLYFFA availability outside the U.S., with a focus on submitting a marketing authorization application in Europe during the second half of 2025.
Financial Stability
Zevra entered into an agreement to monetize its priority review voucher for $150 million, providing non-dilutive capital to support future growth.
Lowlights
Slow Progress of OLPRUVA Launch
OLPRUVA's launch progressed slower than expected, with only four new enrollments in Q4 compared to three in Q3.
Increased Net Loss
Net loss for Q4 2024 was $35.7 million, compared to $19.6 million in the same quarter of the previous year.
High Operating Expenses
Operating expenses increased to $24.5 million in Q4 2024, compared to previous quarters, partly due to personnel-related costs and severance expenses.
Company Guidance
During the conference call, Zevra Therapeutics provided a detailed update on their strategic priorities and financial performance for the fourth quarter and full fiscal year 2024. Key metrics included the successful launch of MIPLYFFA, with 109 patient enrollment forms received in Q4, reflecting significant demand within the Niemann-Pick Disease Type C (NPC) community. Zevra reported net revenue of $12 million for Q4, with $10.1 million attributed to MIPLYFFA. The company aims to expand MIPLYFFA's availability outside the U.S., targeting a marketing authorization application in Europe by the second half of 2025, where 1,100 people are estimated to live with NPC. Zevra also highlighted their strategic pillars: commercial excellence, pipeline and innovation, talent and culture, and corporate foundation. They are leveraging infrastructure for both NPC and urea cycle disorders (UCDs), noting four OLPRUVA enrollments in Q4. Additionally, Zevra enrolled eight patients in their Phase 3 DiSCOVER trial for vascular Ehlers-Danlos Syndrome, bringing the total to 27. Financially, Zevra refinanced debt, completed a secondary offering, and plans to monetize a priority review voucher for $150 million, aiming to extend their cash runway into 2029.

Zevra Therapeutics Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Zevra Therapeutics Sells Priority Review Voucher for $150M
Positive
Feb 27, 2025

On February 26, 2025, Zevra Therapeutics entered into an agreement to sell a Rare Pediatric Disease Priority Review Voucher for $150 million. This transaction, expected to close within 30 to 45 days, will provide non-dilutive capital to support Zevra’s strategic priorities, including the commercial launches of MIPLYFFA and OLPRUVA and the advancement of its product pipeline.

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.