Atea Pharmaceuticals (AVIR) AI Stock Analysis

• Market Cap: $302.35M
• Dividend Yield: N/A
• Average Volume (3M): 424.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: N/A
• EPS Growth: 14.33%
• Country: US
• Employees: 56
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.53
• Shares Outstanding: 78,126,790
• 10 Day Avg. Volume: 455,210
• 30 Day Avg. Volume: 424,396
• PEG Ratio: -0.07
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.08
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -38.43
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: $6.00
• Price Target Upside: 55.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $4.50 ▲(16.28% Upside)

The score is held back primarily by weak financial performance (no revenue, sizable losses, and ongoing cash burn). Offsetting factors include a very low-debt balance sheet, constructive technical momentum, and a positive earnings-call outlook supported by Phase III progress and reported cash runway through 2027.

Positive Factors

Phase III program on track

On-track global Phase III execution materially reduces clinical execution risk over the next 2–6 months. Completed enrollment and defined readout timelines increase the probability of informative data, support de-risking of the lead program, and enhance partner/licensing optionality if results are favorable.

Sizable cash runway

A multi-year cash runway provides durable financial flexibility to fund Phase III trials and early pipeline expansion without immediate equity raises. This reduces short-term dilution risk, supports sustained R&D investment, and gives management time to reach clinical inflection points or secure partnerships.

Potential best-in-class regimen

High modeled cure rates and strong Phase 2 SVR12 suggest a clinically differentiated, shorter-duration HCV regimen. Durable clinical advantages (efficacy, short treatment, low DDI) could translate into sustained market share versus incumbents and stronger commercial or licensing leverage if Phase III confirms results.

Negative Factors

Zero recent revenue and large losses

As a clinical-stage biotech, the absence of recurring product revenue and large ongoing net losses create structural reliance on financing or partnerships. This fundamental revenue gap increases execution risk and the need to convert clinical programs into commercial products to achieve sustainable economics.

Persistent cash burn

Sustained negative operating and free cash flow indicate the company consumes material capital to advance trials. Even with current runway, continued burn raises the likelihood of future financing, partnerships, or cost trade-offs, which can dilute shareholders or constrain strategic options over the medium term.

Eroding equity base

A materially reduced equity base reflects cumulative losses and capital erosion, weakening the balance sheet despite low debt. Over time this can limit capacity for non-dilutive financing, reduce bargaining power in partnerships, and signal lower resilience to adverse trial outcomes or extended development timelines.

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

Overall financials are weak due to zero TTM revenue, sizable net losses (~-$147M), and continued cash burn (TTM FCF ~-$134M) with a declining equity base. The main offset is very low leverage (debt-to-equity ~0.003), which reduces near-term balance sheet risk.

Income Statement

TTM (Trailing-Twelve-Months) shows no revenue and significant losses (net income about -$147M), with deeply negative profitability. Annual results reflect a sharp shift from strong profitability in 2021 (revenue ~$351M, positive net income) to persistent losses from 2022–2024, with revenue falling to zero and losses remaining large. Strength: the company has previously demonstrated it can generate meaningful revenue/profits, but the current trajectory is clearly weak.

Balance Sheet

Leverage is very low (TTM debt-to-equity ~0.003), which reduces financial risk and provides flexibility. However, equity has declined meaningfully from 2021 to TTM (roughly $710M to ~$316M), consistent with ongoing losses and cash burn, and returns on equity are strongly negative in recent periods. Strength: minimal debt burden; weakness: shrinking equity base and continued negative returns.

Cash Flow

Cash generation is weak: TTM operating cash flow and free cash flow are both about -$134M, indicating continued cash burn to fund operations. While free cash flow improved versus the prior period (positive growth in TTM), cash flow has been consistently negative in most recent years (2021–TTM), which increases dependence on existing cash reserves or future financing. Strength: recent burn rate is slightly improving; weakness: still materially negative cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	351.37M	48.63M
Gross Profit	-5.96M	-83.37M	-70.09M	-62.39M	184.16M	10.61M
EBITDA	-155.22M	-131.80M	-119.59M	-110.84M	138.41M	-11.01M
Net Income	-147.03M	-168.38M	-135.96M	-115.91M	121.19M	-10.95M
Balance Sheet
Total Assets	342.96M	464.67M	594.97M	666.71M	772.89M	863.63M
Cash, Cash Equivalents and Short-Term Investments	329.31M	454.72M	578.11M	646.71M	764.38M	850.12M
Total Debt	1.04M	1.64M	2.40M	3.12M	197.00K	0.00
Total Liabilities	27.18M	25.80M	39.78M	26.14M	62.81M	315.83M
Stockholders Equity	315.78M	438.87M	555.19M	640.57M	710.08M	547.80M
Cash Flow
Free Cash Flow	-134.21M	-135.50M	-85.39M	-122.92M	-87.01M	296.71M
Operating Cash Flow	-134.21M	-135.50M	-85.39M	-120.98M	-87.00M	296.73M
Investing Cash Flow	138.83M	56.10M	40.30M	-455.41M	-4.00K	-26.00K
Financing Cash Flow	-25.75M	267.00K	257.00K	370.00K	1.47M	531.75M

Atea Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVIR, the sentiment is Positive. The current price of 3.87 is above the 20-day moving average (MA) of 3.62, above the 50-day MA of 3.36, and above the 200-day MA of 3.25, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVIR.

Atea Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVIR	58 Neutral	$302.35M	-2.20	-37.98%	―	―	14.33%
OABI	55 Neutral	$266.32M	-3.15	-22.37%	―	3.36%	5.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HRTX	48 Neutral	$243.87M	-16.56	―	―	12.60%	58.23%
CDXS	42 Neutral	$116.52M	-1.73	-114.26%	―	-17.87%	14.42%
PRQR	42 Neutral	$170.66M	-3.50	-99.45%	―	-11.99%	-42.04%