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Centessa Pharmaceuticals (CNTA)
NASDAQ:CNTA

Centessa Pharmaceuticals (CNTA) AI Stock Analysis

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Centessa Pharmaceuticals

(NASDAQ:CNTA)

Rating:33Underperform
Price Target:
Centessa Pharmaceuticals has a low overall stock score due to significant financial challenges, including ongoing losses, negative cash flow, and a bearish technical outlook. The lack of profitability reflected in the negative P/E ratio further contributes to the low score. Investors should be cautious, considering the company's need for additional funding to sustain operations in the capital-intensive biotechnology industry.
Positive Factors
Efficacy and Clinical Profile
The new drug class, including ORX750, has shown to far exceed the efficacy of standard-of-care sodium oxybates/Wakix on both MWT and ESS score reduction.
Financial Position
Management highlights a strong balance sheet with $430M cash to support the advancement of orexin programs.
Negative Factors
Adverse Effects
Management acknowledges that insomnia as an on-target adverse effect could impact patient experience.
Risk Factors
There are clinical, regulatory, and commercial risks associated with pipeline products and financing.

Centessa Pharmaceuticals (CNTA) vs. SPDR S&P 500 ETF (SPY)

Centessa Pharmaceuticals Business Overview & Revenue Model

Company DescriptionCentessa Pharmaceuticals plc, a clinical-stage pharmaceutical company, discovers, develops, and delivers medicines to patients. Its registrational pipeline products include Lixivaptan, a vasopressin V2 receptor small molecule inhibitor that is in Phase III clinical development for the treatment of autosomal dominant polycystic kidney disease; and SerpinPC, an activated protein C inhibitor, which is in Phase IIa clinical development for the treatment of hemophilia A and B. The company also has emerging pipeline products under clinical proof of concept stage comprising LB101, a PD-L1xCD47 LockBody, as well as LB201, a PD-L1xCD3 LockBody, which are designed to selectively drive potent CD47 and CD3 effector function activity while avoiding systemic toxicity; ZF874, a small molecule pharmacological chaperone folding corrector of the Z variant of alpha-1-antitrypsin in Phase I clinical development for the treatment of alpha-1-antitrypsin deficiency; MGX292, a recombinant modified BMP9 replacement protein designed to overcome the deficiency in BMP9 signaling in Pulmonary Arterial Hypertension; and OX2R Agonists that are oral and intranasal selective orexin receptor 2 agonists designed to leverage structural insights and to directly target the underlying pathophysiology of orexin neuron loss in Narcolepsy Type 1. In addition, the company has exploratory pipeline products under clinical proof of concept stage containing CBS001, an anti-LIGHT antibody, which preferentially binds the inflammatory membrane form of LIGHT in inflammatory/fibrotic diseases; and CBS004, a humanized mAb specific to BDCA2, expressed exclusively on plasmacytoid dendritic cells in systemic sclerosis, systemic lupus erythematosus, and other autoimmune diseases. Centessa Pharmaceuticals plc was incorporated in 2020 and is based in Altrincham, the United Kingdom.
How the Company Makes MoneyCentessa Pharmaceuticals generates revenue primarily through the research and development of novel drug candidates, which it aims to bring to market either independently or through strategic partnerships. The company invests in early-stage and clinical development of drug candidates, seeking to advance them through the pipeline to commercialization. Revenue streams are expected to include sales of approved therapies, milestone payments, and royalties from collaborations with larger pharmaceutical companies. Additionally, Centessa may engage in licensing agreements that provide upfront payments and future royalties, contingent upon the success of its drug candidates in clinical trials and eventual market approval.

Centessa Pharmaceuticals Financial Statement Overview

Summary
Centessa Pharmaceuticals faces significant financial challenges, with ongoing losses and negative cash flow. The company has struggled to generate revenue, and its profitability metrics are poor. Despite a relatively strong equity position, the company's increasing debt and negative cash flows pose risks to its financial stability. The biotechnology industry is capital-intensive, and Centessa may need to secure additional funding to sustain operations and achieve growth.
Income Statement
15
Very Negative
Centessa Pharmaceuticals has struggled to generate revenue consistently, with zero revenue in multiple years and a significant decline from 2023 to 2024. The company has consistently recorded negative EBIT and net income, indicating persistent operational challenges. The net profit margin remains negative, reflecting ongoing losses.
Balance Sheet
35
Negative
The company's balance sheet shows a relatively strong equity position with stockholders' equity exceeding liabilities, resulting in a positive equity ratio. However, the debt-to-equity ratio is concerning due to increasing total debt over the years. The company maintains a solid cash and short-term investments position, but overall financial stability is compromised by ongoing losses.
Cash Flow
25
Negative
Centessa Pharmaceuticals exhibits negative operating and free cash flows, highlighting liquidity challenges. Although there was a significant inflow from financing activities, the free cash flow to net income ratio is unfavorable, and cash flow from operations continues to be negative, indicating potential cash management issues.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.006.85M0.000.000.00
Gross Profit
0.006.85M-130.92K-33.99K0.00
EBIT
-201.06M-171.28M-212.26M-139.31M-10.44M
EBITDA
-221.97M-166.07M-212.26M-379.16M-10.43M
Net Income Common Stockholders
-235.76M-151.09M-216.21M-381.85M-11.04M
Balance SheetCash, Cash Equivalents and Short-Term Investments
482.18M256.55M393.64M595.08M7.23M
Total Assets
576.80M360.25M444.31M629.63M11.72M
Total Debt
117.23M84.59M69.80M75.70M5.63M
Net Debt
-266.00M-43.44M-323.84M-519.38M-1.60M
Total Liabilities
175.25M124.00M108.14M138.08M34.14M
Stockholders Equity
401.55M236.24M336.17M491.55M-22.42M
Cash FlowFree Cash Flow
-142.09M-160.51M-201.68M-136.33M-10.63M
Operating Cash Flow
-142.06M-160.34M-200.55M-136.14M-10.63M
Investing Cash Flow
31.27M-127.00M-931.00K63.25M0.00
Financing Cash Flow
364.75M21.12M457.00K660.07M1.36M

Centessa Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.86
Price Trends
50DMA
12.76
Negative
100DMA
14.61
Negative
200DMA
15.30
Negative
Market Momentum
MACD
-0.15
Positive
RSI
39.74
Neutral
STOCH
29.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTA, the sentiment is Negative. The current price of 11.86 is below the 20-day moving average (MA) of 12.72, below the 50-day MA of 12.76, and below the 200-day MA of 15.30, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 29.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTA.

Centessa Pharmaceuticals Risk Analysis

Centessa Pharmaceuticals disclosed 110 risk factors in its most recent earnings report. Centessa Pharmaceuticals 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 1 New Risks
1.
or regulatory review or approval process, and does not increase the likelihood that our product candidates will receive marketing approval. Q1, 2024

Centessa Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$3.10B-32.17%-25.85%-23.89%
61
Neutral
$1.94B3.0460.26%25.96%
55
Neutral
$2.31B-24.67%1436.97%68.03%
54
Neutral
$5.24B3.27-45.39%2.80%16.77%-0.07%
53
Neutral
$1.90B21.22-6.25%
45
Neutral
$1.72B-38.04%-82.38%-164.76%
33
Underperform
$1.67B-74.29%-100.00%-25.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNTA
Centessa Pharmaceuticals
11.92
2.84
31.28%
ARWR
Arrowhead Pharmaceuticals
16.81
-7.70
-31.42%
AGIO
Agios Pharma
34.33
-12.89
-27.30%
GLPG
Galapagos
27.73
1.32
5.00%
BEAM
Beam Therapeutics
18.58
-5.82
-23.85%
KYMR
Kymera Therapeutics
47.62
13.36
39.00%

Centessa Pharmaceuticals Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Centessa Pharmaceuticals Updates on OX2R Agonist Pipeline
Positive
Jan 8, 2025

Centessa Pharmaceuticals announced updates on its OX2R agonist pipeline, including ORX750, ORX142, and ORX489, with significant clinical milestones anticipated in 2025. The company aims to position itself as a leader in the emerging category of OX2R agonist therapeutics, bolstered by a strong balance sheet and an estimated cash runway into mid-2027.

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.