Atea Pharmaceuticals (AVIR) AI Stock Analysis

• Market Cap: $267.43M
• Dividend Yield: N/A
• Average Volume (3M): 313.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: N/A
• EPS Growth: 23.24%
• Country: US
• Employees: 56
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.44
• Shares Outstanding: 79,357,550
• 10 Day Avg. Volume: 256,800
• 30 Day Avg. Volume: 313,008
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.29
• Enterprise Value/Revenue: -185.04
• Enterprise Value/Gross Profit: 740.16
• Enterprise Value/Ebitda: 0.51
• 1Y Price Target: $6.00
• Price Target Upside: 78.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ―

Atea Pharmaceuticals faces significant financial challenges with no current revenue and profitability issues, impacting its sustainability. However, its strong cash position provides a buffer, and the promising HCV program may offer future growth opportunities. Positive strategic moves and a strong financial outlook provide some optimism, but overall risks remain high due to the lack of revenue and technical indicators showing bearish sentiment.

Positive Factors

Clinical Development

Clinical development of their combination regimen of bemnifosbuvir and ruzasvir for the treatment of hepatitis C virus is advancing across Ph3 trials.

Financial Position

Strong financial position with $425.4M in cash, extending runway into 2028.

Market Outlook

Given the negative enterprise value, the risk/reward symmetry is skewed to the upside, leading to a reiteration of the Outperform rating on Atea shares.

Negative Factors

Earnings Report

Atea reported a net loss of $37.2 million, or a loss of $0.44 per share.

Financial Performance

Atea reported a net loss of $33.5 million, or a loss of $0.40 per share.

Workforce Reduction

A workforce reduction by 25% is planned during the first quarter, which could lead to roughly $15 million in cost savings through 2027.

Atea Pharmaceuticals Business Overview & Revenue Model

Company Description

Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focused on discovering, developing, and commercializing antiviral therapeutics for patients suffering from viral infections. Its lead product candidate is AT-527, an antiviral drug candidate that is in Phase II clinical trial for the treatment of patients with COVID-19. The company also develops AT-752, an oral purine nucleoside prodrug product candidate, which has completed Phase Ia clinical trial for the treatment of dengue; AT-777, an NS5A inhibitor; AT-787, a co-formulated, oral, pan-genotypic fixed dose combination of AT-527 and AT-777 for the treatment of hepatitis C virous (HCV); and AT-281, a pharmaceutically acceptable salt for the treatment or prevention of an RNA viral infection, including dengue fever, yellow fever, Zika virus, and coronaviridae viral infection, as well as Ruzasvir, an investigational oral, pan genotypic NS5A inhibitor for the treatment of chronic HCV infection. It has a license agreement with Merck & Co, Inc. for development and commercialization of ruzasvir for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Atea 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	416.00K	0.00	0.00	0.00	351.37M	48.63M
Gross Profit	-104.00K	-416.00K	-70.09M	-260.00K	351.34M	48.61M
EBITDA	-150.80M	-167.04M	-119.59M	-119.24M	138.41M	-11.01M
Net Income	-136.13M	-168.38M	-135.96M	-115.91M	121.19M	-10.95M
Balance Sheet
Total Assets	391.61M	464.67M	594.97M	666.71M	772.89M	863.63M
Cash, Cash Equivalents and Short-Term Investments	379.71M	454.72M	578.11M	646.71M	764.38M	850.12M
Total Debt	1.25M	1.64M	2.40M	3.12M	197.00K	0.00
Total Liabilities	27.19M	25.80M	39.78M	26.14M	62.81M	315.83M
Stockholders Equity	364.42M	438.87M	555.19M	640.57M	710.08M	547.80M
Cash Flow
Free Cash Flow	-116.86M	-135.50M	-85.39M	-122.92M	-87.01M	296.71M
Operating Cash Flow	-116.86M	-135.50M	-85.39M	-120.98M	-87.00M	296.73M
Investing Cash Flow	-24.48M	56.10M	40.30M	-455.41M	-4.00K	-26.00K
Financing Cash Flow	-14.32M	267.00K	257.00K	370.00K	1.47M	531.75M

Atea Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.37 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.56, and above the 200-day MA of 3.19, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVIR.

Atea Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$578.20M	―	-51.84%	―	-100.00%	-25.75%
Sector *	51 Neutral	$7.95B	-0.40	-41.67%	2.21%	22.29%	-1.85%
AVIR	47 Neutral	$267.43M	―	-32.38%	―	―	23.24%
OLMA	46 Neutral	$435.83M	―	-49.72%	―	―	6.82%
ATXS	44 Neutral	$395.04M	―	-38.49%	―	―	11.81%
HUMA	42 Neutral	$231.22M	―	-257.38%	―	―	63.92%
CADL	33 Underperform	$268.71M	―	-55.18%	―	―	60.29%

Atea Pharmaceuticals Corporate Events

Atea Pharmaceuticals Announces Board Changes and Share Buyback

On April 16, 2025, Atea Pharmaceuticals entered into an agreement with Bradley L. Radoff and JEC II Associates, resulting in the appointment of Howard H. Berman, Ph.D., to the Board of Directors and the withdrawal of Radoff’s director nominations. This agreement includes standstill restrictions and voting commitments, impacting board dynamics and shareholder relations. Additionally, Atea announced a $25 million share repurchase program to enhance shareholder value, reflecting its strategic focus on long-term success and flexibility in funding its global Phase 3 HCV program.

Spark’s Take on AVIR Stock

According to Spark, TipRanks’ AI Analyst, AVIR is a Neutral.

Atea Pharmaceuticals faces significant financial challenges with no current revenue and profitability issues, impacting its sustainability. However, its strong cash position provides a buffer, and the promising HCV program may offer future growth opportunities. The technical indicators reflect bearish sentiment, while valuation metrics are constrained by the lack of earnings. Positive strategic moves, such as successful trial results, a strong financial outlook, and new board appointments, provide some optimism, but overall risks remain high.

To see Spark’s full report on AVIR stock, click here.

Atea Pharmaceuticals Appoints Arthur Kirsch as Director

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.