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Centessa Pharmaceuticals Plc (CNTA)
:CNTA
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Centessa Pharmaceuticals (CNTA) AI Stock Analysis

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CNTA

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
Market Perception
The topline NT1 results from competitor ALKS are seen as encouraging for CNTA's ORX750 because they validate the orexin agonist class and suggest potential for differentiation in efficacy and/or safety.
Product Differentiation
Early safety data suggest ORX750 may offer a convenient once-daily oral drug with a cleaner safety profile.
Negative Factors
Regulatory and Clinical Risks
Risks to the rating and price target include safety, clinical, regulatory, competition, and financing challenges common in development stage biotechs.
Safety Concerns
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 (CNTA) vs. SPDR S&P 500 ETF (SPY)

Centessa Pharmaceuticals Business Overview & Revenue Model

Company DescriptionCentessa 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 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.006.85M0.000.000.00
Gross Profit-942.00K6.85M-131.00K-33.99K0.00
EBITDA-221.97M-166.07M-207.81M-379.16M-10.29M
Net Income-235.76M-151.09M-216.21M-10.66M-10.66M
Balance Sheet
Total Assets576.80M360.25M444.31M629.63M11.72M
Cash, Cash Equivalents and Short-Term Investments482.18M256.55M393.64M595.08M7.23M
Total Debt117.23M84.59M69.80M75.70M5.63M
Total Liabilities175.25M124.00M108.14M138.08M34.14M
Stockholders Equity401.55M236.24M336.17M491.55M-22.42M
Cash Flow
Free 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 Flow31.27M-127.00M-931.00K63.25M0.00
Financing Cash Flow364.75M21.12M457.00K660.07M1.36M

Centessa Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.31
Price Trends
50DMA
14.20
Positive
100DMA
13.75
Positive
200DMA
15.17
Positive
Market Momentum
MACD
0.82
Negative
RSI
65.00
Neutral
STOCH
81.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTA, the sentiment is Positive. The current price of 17.31 is above the 20-day moving average (MA) of 15.96, above the 50-day MA of 14.20, and above the 200-day MA of 15.17, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 65.00 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks

Centessa Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.19B3.3664.05%30.57%
56
Neutral
$2.16B21.22-10.10%
51
Neutral
$7.39B0.36-62.86%2.37%15.48%-2.68%
51
Neutral
$2.27B-24.67%1436.97%68.03%
51
Neutral
$3.01B-32.17%-25.85%-23.89%
50
Neutral
$1.88B-41.94%-82.90%-155.64%
33
Underperform
$2.31B-74.29%-100.00%-25.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNTA
Centessa Pharmaceuticals
17.18
6.14
55.62%
ARWR
Arrowhead Pharmaceuticals
16.06
-7.35
-31.40%
AGIO
Agios Pharma
37.06
-6.64
-15.19%
GLPG
Galapagos
32.88
8.07
32.53%
BEAM
Beam Therapeutics
17.86
-6.60
-26.98%
KYMR
Kymera Therapeutics
40.85
-0.59
-1.42%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 22, 2025