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Assertio Therapeutics Inc (ASRT)
NASDAQ:ASRT
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Assertio Therapeutics
(NASDAQ:ASRT)
49Neutral
Positive Factors
Regulatory Advancements
Assertio plans to submit the data for incorporation into the National Comprehensive Cancer Network (NCCN) guidelines, which can potentially accelerate Rolvedon’s sales growth.
Sales Growth
Rolvedon has helped replace Indocin’s revenue and has shown growth, indicating potential for future sales acceleration.
Negative Factors
Competition
A second indomethacin generic has been approved, potentially putting further pressure on Indocin.
Assertio Therapeutics (ASRT) vs. S&P 500 (SPY)
Market Cap
$74.34M
Dividend YieldN/A
Average Volume (3M)341.79K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-17.83%
EPS Growth94.26%
CountryUS
Employees53
SectorHealthcare
Sector Strength77
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.23
Shares Outstanding95,477,800
10 Day Avg. Volume395,629
30 Day Avg. Volume341,791
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.59
Price to Cash Flow (P/CF)-531.00
P/FCF Ratio25.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.95Price Target Upside309.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Assertio Therapeutics Business Overview & Revenue Model
Company DescriptionAssertio Therapeutics, Inc. engages in the manufacture and distribution of pharmaceutical products to treat pain and other central nervous system conditions. Its brands include Gralise, Zipsor, Lazanda, Cambia, NUCYNTA ER and NUCYNTA. The firm focuses on neurology, orphan and specialty medicines. The company was founded by John W. Shell on August 7, 1995 and is headquartered in Lake Forest, IL.
How the Company Makes MoneyAssertio Therapeutics generates revenue primarily through the sales of its pharmaceutical products. The company's revenue model is centered around the commercialization of both branded and generic medications, which are distributed through various channels including healthcare providers, pharmacies, and wholesalers. Key revenue streams include product sales from their established drug portfolio targeting neurological and inflammatory conditions. Assertio also engages in strategic partnerships and licensing agreements to expand its market reach and optimize its product offerings. These collaborations may involve co-promotion, co-development, and distribution agreements that contribute to its earnings. Additionally, the company focuses on operational efficiency and cost management to enhance profitability.
Assertio Therapeutics Financial Statement Overview
Summary
Assertio Therapeutics faces significant profitability challenges with a declining revenue trend and negative operational margins, despite a high gross profit margin. The balance sheet shows moderate leverage but declining equity, and cash flow metrics raise concerns about future cash generation capabilities. Overall, the financial health presents a mixed outlook with significant challenges in stabilizing revenue and improving profitability.Income Statement
The income statement reveals a declining revenue trend with a significant drop from $152 million in 2023 to $124.9 million in 2024. The company shows negative EBIT and EBITDA margins, indicating operational inefficiencies and challenges in achieving profitability. Despite a high gross profit margin of approximately 68%, the net profit margin remains negative due to high operational costs.45
Neutral
Balance Sheet
Assertio's balance sheet displays moderate stability with a debt-to-equity ratio of 0.32, suggesting manageable leverage. The equity ratio is approximately 42.5%, indicating a decent proportion of assets financed by equity. However, the declining stockholders' equity from $138 million in 2023 to $121 million in 2024 raises concerns about the company's declining net worth.60
Neutral
Cash Flow
The cash flow statement shows a decline in operating cash flow from $49.6 million in 2023 to $26.4 million in 2024, signaling weakening operational cash generation. Despite this, the free cash flow to net income ratio is positive due to the negative net income, but the sustainability of this cash flow is uncertain as it relies on non-recurring items.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 124.96M | 152.07M | 156.23M | 111.01M | 106.28M | Gross Profit |
| 85.73M | 125.05M | 137.49M | 95.18M | 86.40M | EBIT |
| -24.48M | -243.54M | 57.81M | 9.42M | -46.92M | EBITDA |
| -24.48M | -222.45M | 72.53M | 38.78M | -3.20M | Net Income Common Stockholders |
| -21.48M | -331.94M | 109.63M | -1.28M | -28.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.05M | 73.44M | 64.94M | 36.81M | 20.79M | Total Assets |
| 284.73M | 286.42M | 413.91M | 326.55M | 303.27M | Total Debt |
| 38.81M | 40.91M | 66.87M | 73.49M | 84.10M | Net Debt |
| -11.78M | -32.53M | 1.93M | 36.68M | 63.32M | Total Liabilities |
| 163.65M | 148.42M | 188.19M | 224.13M | 247.76M | Stockholders Equity |
| 121.08M | 138.00M | 225.72M | 102.41M | 55.51M |
| Cash Flow | Free Cash Flow | |||
| 26.41M | 48.98M | 78.32M | 5.47M | -65.58M | Operating Cash Flow |
| 26.41M | 49.60M | 78.60M | 5.52M | -65.57M | Investing Cash Flow |
| -48.91M | 3.10M | -42.67M | -18.52M | 512.80M | Financing Cash Flow |
| -350.00K | -44.20M | -7.79M | 29.03M | -468.55M |
Assertio Therapeutics Technical Analysis
Negative
0.72
Price Trends
0.81
Negative
0.89
Negative
1.06
Negative
Market Momentum
-0.02
Positive
34.88
Neutral
32.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASRT, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.81, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 32.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASRT.
Assertio Therapeutics Risk Analysis
Assertio Therapeutics disclosed 41 risk factors in its most recent earnings report. Assertio Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Assertio 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.74B | 23.71 | 7.55% | ― | 8.94% | 5171.26% | |
61 Neutral | $1.02B | ― | -12.08% | ― | 3.85% | -339.15% | |
49 Neutral | $74.34M | ― | -16.66% | ― | -17.83% | 94.26% | |
49 Neutral | $6.87B | 0.03 | -54.93% | 2.50% | 24.65% | -2.90% | |
43 Neutral | $2.70B | ― | -27.85% | ― | ― | -10.19% | |
42 Neutral | $24.83M | ― | -218.51% | ― | -6.53% | 63.71% |
* Healthcare Sector Average
Performance Comparison
ASRT
Assertio Therapeutics
0.72
-0.40
-35.71%
DRRX
Durect
0.86
-0.43
-33.33%
PCRX
Pacira Pharmaceuticals
22.87
-6.54
-22.24%
SUPN
Supernus Pharmaceuticals
31.26
-1.72
-5.22%
EGRX
Eagle Pharmaceuticals
1.30
-4.75
-78.51%
XENE
Xenon
35.32
-8.64
-19.65%
Assertio Therapeutics Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -7.69% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant achievements, particularly in the growth of Rolvedon sales and strategic leadership appointments, which position the company for future growth. However, challenges such as the erosion of Indocin sales, increased legal expenses, and adjusted EBITDA falling below expectations indicate areas of concern. The strategic focus for 2025 aims to address these challenges and achieve transformation.Highlights
Rolvedon Sales Achievement
Rolvedon sales exceeded $60 million, indicating strong growth and successful transition as the lead asset. This was complemented by positive results from the Rolvedon same-day dosing trial.
Financial Performance Highlights
Total product sales reached $120.8 million, at the high end of the guidance range. Full year adjusted EBITDA was $17.1 million, and operating cash flows were $26.4 million, exceeding the high-end cash goal of $100 million.
Strategic Appointments and Leadership Strengthening
Assertio strengthened its leadership team with the appointment of Mary Pietryga as Chief Commercial Officer and Paul Schwichtenberg as Chief Transformation Officer.
Lowlights
Indocin Erosion and Challenges
Indocin sales were impacted by generic competition, resulting in a decline and a $4.2 million write-down for excess inventory. The market remains uncertain and difficult to predict.
Increased SG&A and Legal Expenses
SG&A expenses increased to $21.4 million in Q4, driven by litigation contingencies, which also affected adjusted operating expenses, increasing them by $5.4 million.
Adjusted EBITDA Below Expectations
Full year adjusted EBITDA was $17.1 million, below the $20 million low-end guidance range, mainly due to inventory write-downs and higher litigation contingencies.
Company Guidance
During the Assertio Holdings Full Year 2024 Results Conference Call, the company provided guidance for 2025, emphasizing their year of transformation. The guidance includes expected net sales ranging from $108 million to $123 million and adjusted EBITDA between $10 million and $19 million. The company highlighted a focus on strategic priorities, including simplifying structure and processes, focusing on growth assets like Rolvedon and Sympazan, and reducing legal exposure to lower operating expenses. Additionally, Assertio aims to deploy capital strategically for long-term value generation. The call also mentioned a modest growth expectation for Rolvedon, with double-digit growth for Sympazan anticipated, despite the continued decline of Indocin sales. The company remains engaged in strategic discussions for potential acquisitions, though specific details were not disclosed.Assertio Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Assertio Therapeutics Announces Leadership Changes and Board Addition
Positive
Dec 17, 2024
Assertio Holdings announced key leadership changes, appointing Paul Schwichtenberg as Chief Transformation Officer and Mary Pietryga as Chief Commercial Officer, effective December 2024. These appointments, along with Mark Reisenauer’s addition to the Board, are aimed at driving new revenue strategies and market growth, positioning Assertio for continued success.
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.