Centessa Pharmaceuticals (CNTA) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 117.83%
• EPS Growth: -14.45%
• Country: US
• Employees: 77
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.38
• Shares Outstanding: 134,073,440
• 10 Day Avg. Volume: 1,058,974
• 30 Day Avg. Volume: 1,110,004
• 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: 0.72
• Enterprise Value/Revenue: 101.80
• Enterprise Value/Gross Profit: 108.20
• Enterprise Value/Ebitda: -7.58
• 1Y Price Target: $33.50
• Price Target Upside: 101.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 33 Underperform
• 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

Drug Development

Management expressed confidence in ORX750's potential to be a best-in-class OX2R agonist for the treatment of narcolepsy type 1, narcolepsy type 2, and idiopathic hypersomnia.

Financial Position

The company reported a strong cash position of $404.1 million, with a cash runway extending into mid-2027.

Strategic Positioning

CNTA is seen as an attractive target for mergers and acquisitions, potentially driving significant upside.

Negative Factors

Clinical Risks

Frequent or severe visual adverse effects or underwhelming efficacy can lead to significant downside for CNTA.

Trial Design Risk

There is a risk that visual disturbances, observed in earlier trials, might be an on-target treatment effect, which could appear in ORX750 trials since its trial design does not include ophthalmic exams.

Centessa Pharmaceuticals Business Overview & Revenue Model

Company Description

Centessa Pharmaceuticals is a biopharmaceutical company focused on discovering and developing innovative medicines for a wide range of diseases. The company operates in the pharmaceuticals sector, with a portfolio encompassing diverse therapeutic areas such as oncology, hematology, and rare diseases. Centessa leverages a unique 'asset-centric' research model that prioritizes the development of high-potential drug candidates through a network of subsidiary companies, each focused on distinct therapeutic areas.

How the Company Makes Money

Centessa 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.95M	0.00	6.85M	0.00	0.00	0.00
Gross Profit	15.01M	-942.40K	6.85M	-131.00K	-33.99K	0.00
EBITDA	-214.24M	-221.97M	-166.07M	-207.81M	-379.16M	-10.29M
Net Income	-230.37M	-235.76M	-151.09M	-216.21M	-10.66M	-10.66M
Balance Sheet
Total Assets	492.13M	576.80M	360.25M	444.31M	629.63M	11.72M
Cash, Cash Equivalents and Short-Term Investments	250.72M	482.18M	256.55M	393.64M	595.08M	7.23M
Total Debt	118.14M	117.23M	84.59M	69.80M	75.70M	5.63M
Total Liabilities	147.21M	175.25M	124.00M	108.14M	138.08M	34.14M
Stockholders Equity	344.92M	401.55M	236.24M	336.17M	491.55M	-22.42M
Cash Flow
Free Cash Flow	-144.05M	-142.09M	-160.51M	-201.68M	-136.33M	-10.63M
Operating Cash Flow	-143.89M	-142.06M	-160.34M	-200.55M	-136.14M	-10.63M
Investing Cash Flow	-192.38M	31.27M	-127.00M	-931.00K	63.25M	0.00
Financing Cash Flow	253.64M	364.75M	21.12M	457.00K	660.07M	1.36M

Centessa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.65
• 50DMA: Positive
• 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 CNTA, the sentiment is Neutral. The current price of 16.65 is below the 20-day moving average (MA) of 17.12, above the 50-day MA of 15.49, and above the 200-day MA of 15.29, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNTA.

Centessa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGIO	65 Neutral	$2.23B	3.56	64.05%	―	30.57%	―
KYMR	60 Neutral	$3.14B	―	-33.26%	―	-49.51%	-44.09%
GLPG	56 Neutral	$2.09B	21.22	-10.10%	―	―	―
ARWR	54 Neutral	$2.93B	―	-34.80%	―	2816.21%	73.33%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
BEAM	41 Neutral	$1.68B	―	-41.94%	―	-82.90%	-155.64%
CNTA	33 Underperform	$2.25B	―	-72.95%	―	117.83%	-14.45%

Centessa Pharmaceuticals Corporate Events

Centessa Pharmaceuticals Updates on OX2R Agonist Pipeline

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.