AN2 Therapeutics, Inc. (ANTX) AI Stock Analysis

• Market Cap: $38.83M
• Dividend Yield: N/A
• Average Volume (3M): 68.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: 38.98%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -1.72
• Shares Outstanding: 30,098,720
• 10 Day Avg. Volume: 36,781
• 30 Day Avg. Volume: 68,191
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.90
• 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: $2.67
• Price Target Upside: 106.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

AN2 Therapeutics, Inc. exhibits significant financial challenges typical for its stage, including lack of revenue and continuous cash burn, with no profitability in sight. The stable balance sheet provides some cushion, but the absence of revenue growth and reliance on external funding are concerning. Technically, the stock shows neutral trends, with no clear directional momentum. Valuation remains speculative, given the negative P/E ratio and absence of dividends. Overall, while the financial structure is stable, the company's prospects hinge on successful product development and strategic partnerships.

Positive Factors

Drug Efficacy

The efficacy results for epetraborole in MAC NTM are convincing, with expectations of similar positive outcomes in Phase 3.

Financial Stability

AN2 reported results in line with consensus estimates, ending the year with ~$89M in cash and guiding to runway through 2027 under the current operating plans.

Market Opportunity

AN2 Therapeutics anticipates unblinding Phase 3 results for their oral antibiotic candidate, which could lead to a significant market opportunity of over $1 billion.

Negative Factors

Clinical Trial Challenges

The key secondary endpoint of sputum culture conversion was not met; 6-month culture conversion was similar between arms.

Trial Outcomes

The culture conversion results for epetraborole were disappointing, although not unexpected.

AN2 Therapeutics, Inc. Business Overview & Revenue Model

Company Description

AN2 Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing treatments for rare, chronic, and serious infectious diseases. It is developing epetraborole, a once-daily oral treatment for patients with chronic non-tuberculous mycobacterial lung disease. The company was incorporated in 2017 and is headquartered in Menlo Park, California.

How the Company Makes Money

AN2 Therapeutics makes money primarily through the development and eventual commercialization of its proprietary drug candidates. The company's revenue model is based on achieving successful clinical trial results that lead to regulatory approvals, which would then allow for the commercialization and sale of its therapeutic products. Key revenue streams include potential product sales, licensing agreements, and partnerships with other pharmaceutical companies. These partnerships may involve collaboration on research and development or co-marketing arrangements that provide upfront payments, milestone payments, and royalties. Additionally, the company may also secure funding through strategic alliances, grants, and investor funding to support its drug development programs.

AN2 Therapeutics, Inc. Financial Statement Overview

Summary

AN2 Therapeutics, Inc. faces typical challenges for a biotech firm at its stage, including lack of revenue and dependence on external funding. While the balance sheet shows a strong equity position and no debt, persistent negative cash flows and losses underscore the need for successful product development or partnerships to achieve financial sustainability.

Income Statement

AN2 Therapeutics, Inc. shows no revenue generation, which is typical for early-stage biotech companies. The company has consistently reported negative EBIT and net income, indicating operational and net losses. A lack of revenue growth and continuous losses highlight significant challenges in achieving profitability.

Balance Sheet

The company's financial structure is relatively stable with no debt and positive stockholders' equity, providing a solid equity base. However, the absence of revenue raises concerns about the sustainability of this financial position without additional financing.

Cash Flow

Negative operating and free cash flows are consistent, reflecting cash burn typical for R&D-focused biotech firms. The reliance on financing cash flow indicates dependence on external funding to support operations, which poses a risk if future funding is not secured.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	-77.00K	0.00	0.00	0.00
	EBIT
-56.79M	-69.64M	-42.26M	-21.57M	-7.28M	-5.18M
	EBITDA
-36.26M	4.90M	-42.26M	0.00	-6.32M	0.00
	Net Income Common Stockholders
-51.32M	-64.73M	-41.47M	-21.47M	-13.60M	-5.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.21M	107.30M	96.06M	58.55M	4.07M	5.60M
	Total Assets
121.26M	138.74M	102.56M	65.32M	4.23M	5.70M
	Total Debt
0.00	0.00	53.00K	0.00	0.00	728.00K
	Net Debt
-24.69M	-15.65M	-27.17M	-12.10M	-4.07M	-4.87M
	Total Liabilities
10.66M	14.04M	7.19M	112.73M	24.55M	887.00K
	Stockholders Equity
110.60M	124.70M	95.37M	-47.41M	-20.32M	4.81M
Cash Flow		Free Cash Flow
-49.26M	-53.29M	-33.46M	-20.48M	-5.36M	-2.49M
	Operating Cash Flow
-49.26M	-53.29M	-33.46M	-20.48M	-5.36M	-2.49M
	Investing Cash Flow
54.59M	-43.28M	-21.77M	-50.02M	0.00	0.00
	Financing Cash Flow
372.00K	84.99M	70.36M	78.53M	3.84M	8.08M

AN2 Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 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 ANTX, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.29, and below the 200-day MA of 1.36, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANTX.

AN2 Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRO	53 Neutral	$40.53M	10.83	-89.62%	―	-71.68%	-397.61%
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
DYAI	46 Neutral	$35.51M	―	-139.16%	―	20.58%	15.90%
XFOR	43 Neutral	$33.00M	―	-102.26%	―	―	69.37%
ITRM	42 Neutral	$44.96M	―	607.06%	―	―	55.67%
OTLK	38 Underperform	$50.56M	―	<0.01%	―	―	-29.01%
ANTX	34 Underperform	$38.83M	―	-49.69%	―	―	38.98%

AN2 Therapeutics, Inc. Corporate Events

AN2 Therapeutics Promotes Joshua Eizen to Key Roles

AN2 Therapeutics has promoted its Chief Legal Counsel, Joshua Eizen, to the roles of Chief Legal Officer and Chief Operating Officer, effective immediately. Eizen’s new compensation package includes a salary of $450,000, stock options, and restricted stock units that vest over time. This move is part of AN2’s strategic efforts to strengthen its leadership team, appealing to investors looking at executive management changes.