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Assertio Therapeutics Inc (ASRT)
NASDAQ:ASRT
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Assertio Therapeutics
(NASDAQ:ASRT)
Rating:49Neutral
Price Target:
$0.50
▼( -29.58% Downside)
Positive Factors
Financial Performance
Assertio reported total revenue that exceeded consensus estimates, showcasing strong performance in certain segments.
Product Development
Rolvedon has helped replace Indocin’s revenue and has shown growth, indicating potential for future sales acceleration.
Negative Factors
Financial Challenges
The company recorded a higher-than-expected net loss for the full year 2024, highlighting financial challenges.
Operating Expenses
Operating expenses of $34.0M exceeded our estimate of $24.8M.
Assertio Therapeutics (ASRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.72M
Dividend YieldN/A
Average Volume (3M)343.17K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth-16.23%
EPS Growth91.83%
CountryUS
Employees58
SectorHealthcare
Sector Strength43
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.14
Shares Outstanding95,780,740
10 Day Avg. Volume305,506
30 Day Avg. Volume343,170
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.48
Price to Sales (P/S)0.00
P/FCF Ratio2.21
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.59
Enterprise Value/Ebitda-0.10
Forecast
1Y Price Target
$2.80Price Target Upside294.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Assertio Therapeutics Business Overview & Revenue Model
Company DescriptionAssertio Holdings, Inc., a specialty pharmaceutical company, provides medicines in the areas of neurology, hospital, and pain and inflammation. Its pharmaceutical products include INDOCIN, an oral solution and a suppository form for the treatment of moderate to severe rheumatoid arthritis, including acute flares of chronic disease; ankylosing spondylitis and osteoarthritis; and acute painful shoulder and gouty arthritis. It also provides CAMBIA, a non-steroidal anti-inflammatory drug (NSAID) for the treatment of migraine, nausea, photophobia, and phonophobia; Zipsor, a NSAID for relief of mild to moderate acute pain; SPRIX, a NSAID for the short term management of moderate to moderately severe pain that requires analgesia at the opioid level; and Otrexup, a single-dose auto-injector containing a prescription medicine and methotrexate that is used to treat adults with severe, active rheumatoid arthritis, and children with active polyarticular juvenile idiopathic arthritis. The company was formerly known as Assertio Therapeutics, Inc. and changed its name to Assertio Holdings, Inc. in May 2020. Assertio Holdings, Inc. was incorporated in 1995 and is headquartered in Lake Forest, Illinois.
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' financial health presents a mixed outlook. The income statement highlights significant profitability challenges with negative net income and operational margins. The balance sheet shows moderate leverage but declining equity, while cash flow metrics raise concerns about future cash generation capabilities. The company faces 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 |
| 39.77M | 40.91M | 66.87M | 73.49M | 84.10M | Net Debt |
| -10.82M | -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
Positive
0.71
Price Trends
0.65
Positive
0.74
Negative
0.91
Negative
Market Momentum
0.01
Negative
61.81
Neutral
72.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASRT, the sentiment is Positive. The current price of 0.71 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.65, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 72.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASRT.
Assertio Therapeutics Risk Analysis
Assertio Therapeutics disclosed 40 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 3 New Risks
1.
If we are not successful in commercializing our other products, our business, financial condition and results of operations will be materially and adversely affected. Q4, 2024
2.
Data breaches and cyberattacks or other failures in our telecommunications or information technology systems, or those of our third-party vendors or other contractors or consultants, could result in information theft, data corruption and significant disruption of our business operations. Q4, 2024
3.
The use of new and evolving technologies, such as AI and ML, in our operations, and the operations of third parties upon which we rely, may result in spending additional resources and present new risks and challenges that can impact our business including by posing security and other risks to our sensitive data, and as a result we may be exposed to reputational harm, other adverse consequences, and liability. Q4, 2024
Assertio Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $75.25M | ― | -11.67% | ― | 5.82% | 59.86% | |
55 Neutral | $36.57M | ― | -2.12% | ― | 12.82% | 96.46% | |
53 Neutral | $5.14B | 3.06 | -43.57% | 2.81% | 16.81% | -0.12% | |
50 Neutral | $97.22M | ― | 75.79% | ― | 10.58% | 34.44% | |
49 Neutral | $65.72M | ― | -25.19% | ― | -16.23% | 91.83% | |
46 Neutral | $18.94M | ― | -203.11% | ― | -41.45% | 40.69% | |
43 Neutral | $30.04M | ― | -43.47% | ― | -98.13% | -129.06% |
* Healthcare Sector Average
Performance Comparison
ASRT
Assertio Therapeutics
0.71
-0.30
-29.70%
DRRX
Durect
0.54
-0.72
-57.14%
RMTI
Rockwell Med
1.00
-0.82
-45.05%
SCYX
SCYNEXIS
0.77
-1.47
-65.63%
CPIX
Cumberland Pharmaceuticals
5.09
3.47
214.20%
OPTN
Optinose
9.60
-7.35
-43.36%
Assertio Therapeutics Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 14.52%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments like slight outperformance in net product sales and strategic legal settlements, but also highlighted challenges such as declines in Rolvedon, Indocin, and Sympazan sales, alongside increased SG&A expenses and reduced adjusted EBITDA.Q1-2025 Updates
Positive Updates
Slightly Ahead of Plan for Net Product Sales
Net product sales in the first quarter came in slightly ahead of plan at $26 million, and the company is tracking to their full-year net product sales and adjusted EBITDA outlook.
Strong Rolvedon Demand and Expanded Payer Coverage
Rolvedon results were impacted by sell-through of initial stocking activity supporting customer and volume expansion, with expectations for increased net sales and expanded payer coverage starting with Cigna.
Sympazan Prescription Growth
Sympazan prescriptions increased by 6.5% year-over-year, indicating a positive trend expected to continue.
Successful Legal Settlements
Settled multiple prior legal matters and reduced legal exposure, including a significant Department of Justice False Claims Act lawsuit and Glumetza antitrust action.
Simplified Corporate Structure
Simplified corporate holding structure by transferring assets to ATIH Industries LLC, thereby reducing legal liabilities, including opioid litigation.
Negative Updates
Decrease in Rolvedon Sales
Rolvedon sales decreased from $14.5 million to $13.1 million year-over-year, driven by lower pricing despite higher volume.
Indocin Sales Decline
Indocin net product sales were $5.5 million, down from $8.7 million due to impacts from generic competition.
Sympazan Sales Decline
Sympazan sales decreased from $2.6 million to $2.2 million, impacted by pricing and volume.
Increased SG&A Expenses
SG&A expenses rose to $22 million from $18.5 million, primarily due to higher legal charges.
Reduced Adjusted EBITDA
Adjusted EBITDA for the first quarter was $0.2 million, down from $7.4 million in the prior year, reflecting lower net sales and gross margin.
Company Guidance
During the Assertio Holdings First Quarter 2025 Results Conference Call, the company maintained its full-year guidance for net product sales and adjusted EBITDA, projecting ranges of $108 million to $123 million for net sales and $10 million to $19 million for adjusted EBITDA. In Q1 2025, Assertio reported net product sales of $26 million, slightly above their plan, with Rolvedon sales at $13.1 million and Sympazan prescriptions increasing by 6.5% year-over-year. Indocin sales were stable, though impacted by generic competition with sales at $5.5 million. The gross margin increased to 70% from 65% the previous year, and the company ended the quarter with cash and investments totaling $87.3 million. Assertio's strategy includes reducing legal exposure, simplifying corporate structure, and divesting non-core assets, which they aim to complete by the end of 2025 as part of their transformation phase.Assertio Therapeutics Corporate Events
Executive/Board ChangesShareholder MeetingsStock SplitBusiness Operations and Strategy
Assertio Therapeutics Approves Key Proposals at Annual Meeting
Positive
May 13, 2025
At its recent Annual Meeting, Assertio Therapeutics‘ stockholders approved several key proposals, including an amendment to the 2014 Omnibus Incentive Plan, increasing the number of shares available for issuance by 8,200,000. Additionally, the stockholders elected seven directors to serve until the 2026 Annual Meeting, approved executive compensation, authorized a potential reverse stock split, and ratified Grant Thornton LLP as the independent auditor for 2025. These decisions reflect strategic moves to enhance the company’s operational flexibility and governance structure.
The most recent analyst rating on (ASRT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Assertio Therapeutics stock, see the ASRT Stock Forecast page.
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.