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Atea Pharmaceuticals (AVIR)
NASDAQ:AVIR
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Atea Pharmaceuticals
(NASDAQ:AVIR)
46Neutral
Positive Factors
Clinical Trials
The combination of bemnifosbuvir and ruzasvir met its primary endpoints of safety and sustained virologic response at 12 weeks post-treatment in subjects with chronic hepatitis C infection.
Cost Savings
A workforce reduction by 25% is planned during the first quarter, which could lead to roughly $15 million in cost savings through 2027.
Negative Factors
Financial Performance
Atea reported a net loss of $33.5 million, or a loss of $0.40 per share.
Atea Pharmaceuticals (AVIR) vs. S&P 500 (SPY)
Market Cap
$249.73M
Dividend YieldN/A
Average Volume (3M)327.52K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue GrowthN/A
EPS Growth-22.66%
CountryUS
Employees75
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.00
Shares Outstanding85,525,180
10 Day Avg. Volume346,588
30 Day Avg. Volume327,519
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-2.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.20Price Target Upside100.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Atea Pharmaceuticals Business Overview & Revenue Model
Company DescriptionAtea Pharmaceuticals Inc is a clinical stage biopharmaceutical company engaged in discovering and developing therapies to address the unmet medical needs of patients with severe viral diseases. Its programs are focused on the development of orally- administered direct acting antivirals for the treatment of patients with COVID-19 in the hospital and community settings, the treatment of patients with chronic hepatitis C infection, the treatment of patients with dengue, and the treatment of high-risk patients with severe respiratory syncytial virus infection. The company's medicinal chemistry, virology, and pharmacology expertise, bolstered by its collective experience in drug development, enables it to pioneer new advancements in antiviral science.
How the Company Makes MoneyAtea Pharmaceuticals generates revenue through partnerships, collaborations, and potential future sales of its antiviral therapeutic products. The company has entered into significant partnerships, such as its collaboration with Roche, to fund development and commercialization of its product candidates. Revenue streams may include milestone payments, royalties, and licensing fees associated with these collaborations. Additionally, upon successful approval and commercialization of its drugs, Atea would earn revenue from direct sales of its antiviral therapies.
Atea Pharmaceuticals Financial Statement Overview
Summary
Atea Pharmaceuticals demonstrates financial resilience with a strong equity position and cash reserves, but the lack of revenue and profitability challenges are significant. Without a clear path to generating revenue, the company faces sustainability risks, impacting its overall financial health.Income Statement
Atea Pharmaceuticals has experienced a significant decline in revenue since 2021, when it last reported substantial revenues. The company has had zero revenue in recent periods, alongside consistently negative net income, EBIT, and EBITDA. This demonstrates a challenging revenue environment and profitability issues.25
Negative
Balance Sheet
The company maintains a strong equity base relative to its liabilities, with a high equity ratio. However, the absence of revenue and profitability pressures highlights potential risks to its financial stability in the long term.45
Neutral
Cash Flow
Atea's cash flow situation is concerning with negative operating and free cash flows over the past two years. While it has substantial cash reserves, the ongoing cash burn raises sustainability questions without revenue generation.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 351.37M | 48.63M | Gross Profit |
| 0.00 | -70.09M | -260.00K | 351.34M | 48.61M | EBIT |
| -192.95M | -164.16M | -130.65M | 138.38M | -11.03M | EBITDA |
| -192.95M | -119.59M | -110.84M | 138.41M | -11.01M | Net Income Common Stockholders |
| -168.38M | -135.96M | -115.91M | 121.19M | -10.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 454.72M | 578.11M | 646.71M | 764.38M | 850.12M | Total Assets |
| 464.67M | 594.97M | 666.71M | 772.89M | 863.63M | Total Debt |
| 1.64M | 2.40M | 3.12M | 197.00K | 0.00 | Net Debt |
| -63.05M | -141.42M | -643.59M | -764.18M | -850.12M | Total Liabilities |
| 25.80M | 39.78M | 26.14M | 62.81M | 315.83M | Stockholders Equity |
| 438.87M | 555.19M | 640.57M | 710.08M | 547.80M |
| Cash Flow | Free Cash Flow | |||
| -135.50M | -85.39M | -122.92M | -87.01M | 296.71M | Operating Cash Flow |
| -135.50M | -85.39M | -120.98M | -87.00M | 296.73M | Investing Cash Flow |
| 56.10M | 40.30M | -455.41M | -4.00K | -26.00K | Financing Cash Flow |
| 267.00K | 257.00K | 370.00K | 1.47M | 531.75M |
Atea Pharmaceuticals Technical Analysis
Neutral
3.10
Price Trends
3.14
Negative
3.22
Negative
3.41
Negative
Market Momentum
-0.04
Negative
53.28
Neutral
43.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVIR, the sentiment is Neutral. The current price of 3.1 is above the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.14, and below the 200-day MA of 3.41, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 43.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVIR.
Atea Pharmaceuticals Risk Analysis
Atea Pharmaceuticals disclosed 81 risk factors in its most recent earnings report. Atea Pharmaceuticals 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
Atea Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $78.51B | 18.73 | 15.95% | 0.12% | 8.27% | 10.35% | |
75 Outperform | $142.50B | 306.43 | 2.28% | 2.70% | 6.16% | -91.54% | |
54 Neutral | $23.61B | ― | -3.38% | ― | -27.64% | -172.62% | |
51 Neutral | $1.00B | ― | -38.09% | ― | -13.90% | 16.56% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
48 Neutral | $13.03B | ― | -28.77% | ― | -52.75% | 25.00% | |
46 Neutral | $249.73M | ― | -33.88% | ― | ― | -22.66% |
* Healthcare Sector Average
Performance Comparison
AVIR
Atea Pharmaceuticals
3.06
-0.79
-20.52%
GILD
Gilead Sciences
113.35
41.32
57.36%
REGN
Regeneron
680.61
-277.20
-28.94%
MRNA
Moderna
34.30
-69.16
-66.85%
BNTX
BioNTech SE
97.46
4.55
4.90%
VIR
Vir Biotechnology
7.00
-3.52
-33.46%
Atea Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 3.33% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook for Atea Pharmaceuticals, driven by successful phase two trial results for the HCV program and a strong financial position. While there were challenges related to workforce reduction and cirrhotic patient recruitment, the company's strategic initiatives and financial health suggest a promising future.Highlights
Successful Phase 2 HCV Trial Results
The global phase two trial for the HCV program demonstrated a 98% cure rate with a short eight-week treatment, indicating strong potential for best-in-class hepatitis C treatment.
Initiation of Phase 3 HCV Program
Following positive phase two results and a successful FDA meeting, the company is initiating a global phase three program for its HCV regimen.
Strong Financial Position
Atea Pharmaceuticals reported $454.7 million in cash, cash equivalents, and marketable securities, providing a cash runway extending into 2028.
Cost-Reduction Measures
The company announced a workforce reduction of 20-25%, expected to save approximately $15 million through 2027.
Lowlights
Workforce Reduction
Atea Pharmaceuticals announced a reduction of its workforce by approximately 20-25% to enhance efficiency and manage infrastructure expenditures.
Challenges in Cirrhotic Patient Recruitment
The company noted challenges in recruiting cirrhotic patients for its phase three trial due to declining numbers globally.
Company Guidance
During Atea Pharmaceuticals' fourth quarter 2024 financial results call, guidance was provided on the company's strategic and financial trajectory. The company highlighted its significant progress in advancing the HCV program with a promising regimen, achieving a 98% cure rate in a phase two trial. The phase three program, set to begin enrollment in April 2025, is considered de-risked with a high likelihood of success, bolstered by robust phase two results and favorable multiscale modeling data. Financially, the company reported a strong position, with $454.7 million in cash and equivalents as of December 31, 2024, anticipated to extend their runway into 2028. Additionally, Atea announced a workforce reduction of approximately 20-25% to optimize expenditure, estimated to save around $15 million through 2027. The company has engaged Evercore to explore strategic partnerships, aiming to enhance shareholder value and capitalize on a multibillion-dollar market opportunity.Atea Pharmaceuticals Corporate Events
Executive/Board Changes
Atea Pharmaceuticals Appoints Arthur Kirsch as Director
Positive
Feb 24, 2025
On February 20, 2025, Atea Pharmaceuticals appointed Arthur Kirsch as a Class I director. Mr. Kirsch brings extensive experience from his roles in investment banking and advisory positions in the healthcare and life sciences sectors, which the company believes will enhance its strategic direction. His compensation includes an annual cash retainer and equity awards, reflecting Atea’s commitment to leveraging his expertise for future growth.
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.