Santhera Pharmaceuticals Holding (SANN) AI Stock Analysis

• Market Cap: CHF196.51M
• Dividend Yield: N/A
• Average Volume (3M): 55.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -56.85%
• EPS Growth: -186.55%
• Country: CH
• Employees: 78
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.04
• Shares Outstanding: 14,015,505
• 10 Day Avg. Volume: 57,231
• 30 Day Avg. Volume: 55,851
• PEG Ratio: 0.02
• Price to Book (P/B): 5.68
• Price to Sales (P/S): 4.02
• P/FCF Ratio: -4.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF30.00
• Price Target Upside: 106.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: CHF14.50 ▼(-0.41% Downside)

The score is held down primarily by weak financial performance (profitability, leverage, and cash flow reliance on funding). This is partially offset by constructive technical momentum and a more positive earnings-call outlook driven by raised revenue guidance and AGAMREE adoption, though financing needs and losses remain key risks.

Positive Factors

Strong European market adoption

Sustained ~40% market share in key European markets indicates strong prescriber acceptance and durable competitive positioning versus alternatives. High adoption among steroid-using DMD patients creates recurring demand, supports pricing leverage in orphan segment, and builds a barrier to entry for competitors over a multi-year horizon.

Validated US commercial pathway via partner

Partner-led US sales tracking to $100–110m validates market demand and Santhera's royalty/milestone revenue model. Strong partner uptake both accelerates scale without full in-house commercial expense and creates potential milestone upside, improving durable revenue visibility and lowering go-to-market execution risk in the large US DMD market.

Geographic expansion into China

Early commercial rollout in China with 250+ patients expands the addressable market and diversifies revenue sources. Successful entry into a large epidemiologic market supports multi-region growth, reduces concentration risk, and creates long-term upside as reimbursement, physician awareness, and distribution agreements mature over several years.

Negative Factors

High leverage and weak equity

A debt-to-equity ratio above 1 and a low equity ratio indicate structural financial leverage that limits strategic flexibility. Elevated debt increases refinancing and covenant risk if revenues underperform, raises interest burdens over time, and weakens the company's ability to invest organically or withstand protracted commercial setbacks.

Reliance on external financing

Dependence on a CHF 20m financing to extend runway highlights persistent negative cash generation. Continued fundraising risk can be dilutive or costly, and frequent capital raises create execution risk if market access tightens, making long-term planning and investment in commercial scale more uncertain.

Volatile revenues and operating losses

Sharp 2024 revenue decline and ongoing negative EBIT reflect instability in commercial traction or timing of sales recognition. Persistent operating losses undermine self-funded growth, increase the need for external capital, and weaken the timeline to sustainable profitability even if product adoption improves in specific markets.

Santhera Pharmaceuticals Holding Business Overview & Revenue Model

Company Description

Santhera Pharmaceuticals Holding AG, a specialty pharmaceutical company, together with its subsidiaries, develops and commercializes medicines for rare neuromuscular and pulmonary diseases with high unmet medical need in the European Union and internationally. The company's lead pipeline candidate includes vamorolone, which is being developed as treatments for Duchenne muscular dystrophy (DMD). Its clinical stage pipeline also comprises lonodelestat (POL6014) to treat cystic fibrosis and other neutrophilic pulmonary diseases, as well as omigapil that treats congenital muscular dystrophies. The company also out-licenses outside North America and France rights to its approved product, Raxone (idebenone), for the treatment of Leber's hereditary optic neuropathy. Santhera Pharmaceuticals Holding AG was founded in 2004 and is headquartered in Pratteln, Switzerland.

How the Company Makes Money

Santhera Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products, including sales of approved drugs and potential royalties from partnerships. Key revenue streams include direct sales of Vamorolone and other therapies once they receive regulatory approval. The company may also enter into licensing agreements or collaborations with larger pharmaceutical firms, which can provide upfront payments, milestone payments based on the achievement of certain developmental or sales targets, and royalties on sales. Additionally, funding from grants or governmental support for research and development can contribute to its revenue model, especially for rare disease indications that attract specific interest.

Santhera Pharmaceuticals Holding Financial Statement Overview

Summary

Santhera Pharmaceuticals faces significant financial challenges, including volatile revenue, negative profitability, high leverage, and cash flow difficulties. Despite a strong revenue year in 2023, the company needs operational improvements and financial restructuring for stability.

Income Statement

Santhera Pharmaceuticals has shown a volatile revenue trend with a significant drop in 2024 compared to 2023. The company struggles with profitability as indicated by negative EBIT and net income margins. However, past revenue growth was notable in 2023, suggesting potential for recovery if operational issues are addressed.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio exceeding 1, indicating reliance on debt financing. The equity ratio is low, reflecting weak equity position. Persistent negative stockholders' equity in some years raises concerns about financial stability.

Cash Flow

Cash flow from operations has been negative in recent years, indicating challenges in generating cash internally. Positive financing cash flows highlight reliance on external funding. Free cash flow turned negative, suggesting cash management issues despite periods of positive operating cash flow in the past.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.02M	39.12M	103.41M	7.47M	-1.59M	15.01M
Gross Profit	5.89M	22.96M	100.18M	3.88M	-5.36M	4.58M
EBITDA	-32.52M	-15.89M	79.17M	-46.78M	-34.57M	-53.43M
Net Income	-65.54M	-41.97M	54.78M	-71.08M	-55.53M	-67.66M
Balance Sheet
Total Assets	130.77M	152.49M	109.63M	63.73M	91.12M	88.69M
Cash, Cash Equivalents and Short-Term Investments	18.40M	40.92M	30.37M	1.35M	21.21M	12.41M
Total Debt	76.30M	41.17M	23.03M	44.44M	42.98M	71.17M
Total Liabilities	133.33M	124.79M	49.69M	107.41M	89.79M	95.04M
Stockholders Equity	-2.56M	27.70M	59.94M	-43.69M	1.33M	-6.35M
Cash Flow
Free Cash Flow	-40.92M	-35.68M	23.53M	-33.80M	-37.37M	-43.54M
Operating Cash Flow	-40.84M	-35.53M	47.27M	-29.84M	-37.36M	-43.51M
Investing Cash Flow	-142.00K	-61.00K	-18.04M	-3.93M	69.00K	1.56M
Financing Cash Flow	44.82M	46.08M	-171.00K	13.99M	46.02M	23.15M

Santhera Pharmaceuticals Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SANN, the sentiment is Positive. The current price of 14.56 is above the 20-day moving average (MA) of 12.57, above the 50-day MA of 11.66, and above the 200-day MA of 12.71, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 75.02 is Negative, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SANN.

Santhera Pharmaceuticals Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSLN	73 Outperform	CHF706.50M	9.27	―	―	58.51%	―
NWRN	67 Neutral	CHF608.44M	25.38	―	―	744.64%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SANN	48 Neutral	CHF196.51M	-2.84	-301.13%	―	-56.85%	-186.55%
MOLN	48 Neutral	CHF133.03M	-2.08	-49.86%	―	-100.00%	14.45%
IDIA	46 Neutral	CHF942.57M	-5.53	―	―	229.23%	63.47%