Centessa Pharmaceuticals (CNTA) AI Stock Analysis

• Market Cap: $3.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 117.83%
• EPS Growth: -18.91%
• Country: US
• Employees: 77
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 146,075,740
• 10 Day Avg. Volume: 2,706,605
• 30 Day Avg. Volume: 1,766,821
• PEG Ratio: -0.26
• Price to Book (P/B): 4.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.49
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 208.37
• Enterprise Value/Gross Profit: 211.59
• Enterprise Value/Ebitda: -13.75
• 1Y Price Target: $37.10
• Price Target Upside: 34.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): -1.37
• Revenue Forecast (FY): $15.77M

• 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

Unique Research Model

The 'asset-centric' model allows Centessa to focus on high-potential drug candidates, potentially accelerating development and improving success rates.

Strong Equity Position

A strong equity position provides financial resilience, enabling Centessa to withstand operational challenges and invest in R&D.

Revenue Growth Potential

High revenue growth potential suggests expanding market opportunities and successful drug development, crucial for long-term success.

Negative Factors

Ongoing Losses

Persistent losses indicate operational inefficiencies and challenge the company's ability to achieve profitability in the near term.

Negative Cash Flow

Negative cash flow stresses liquidity, limiting Centessa's ability to fund operations and R&D without additional financing.

Increasing Debt Levels

Rising debt levels can strain financial resources, increasing risk and potentially impacting future investment and growth capabilities.

Centessa Pharmaceuticals Business Overview & Revenue Model

Company Description

Centessa 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 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	15.00M	0.00	6.85M	0.00	0.00	0.00
Gross Profit	14.77M	0.00	6.85M	0.00	0.00	0.00
EBITDA	-227.27M	-221.88M	-165.43M	-209.55M	-139.30M	-10.29M
Net Income	-242.70M	-235.76M	-151.09M	-216.21M	-381.90M	-10.66M
Balance Sheet
Total Assets	448.30M	576.80M	360.25M	444.31M	629.63M	11.72M
Cash, Cash Equivalents and Short-Term Investments	246.21M	482.18M	256.55M	393.64M	595.08M	7.23M
Total Debt	118.26M	117.23M	84.59M	69.80M	75.70M	5.63M
Total Liabilities	146.73M	175.25M	124.00M	108.14M	138.08M	8.62M
Stockholders Equity	301.57M	401.55M	236.24M	336.17M	491.55M	3.10M
Cash Flow
Free Cash Flow	-181.17M	-142.09M	-160.51M	-201.68M	-136.33M	-10.63M
Operating Cash Flow	-180.81M	-142.06M	-160.34M	-200.55M	-136.14M	-10.63M
Investing Cash Flow	-175.40M	31.27M	-127.00M	-931.00K	63.25M	0.00
Financing Cash Flow	11.09M	364.75M	21.12M	457.00K	660.07M	1.36M

Centessa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 27.54 is above the 20-day moving average (MA) of 25.11, above the 50-day MA of 23.83, and above the 200-day MA of 17.13, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNTA.

Centessa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APLS	51 Neutral	$2.46B	65.81	14.10%	―	42.11%	―
RARE	50 Neutral	$3.07B	―	-325.76%	―	20.63%	8.09%
SRRK	50 Neutral	$4.05B	―	-218.04%	―	―	-31.71%
XENE	48 Neutral	$3.14B	―	-45.14%	―	―	-38.30%
IMVT	45 Neutral	$4.06B	―	-95.93%	―	―	-27.70%
CNTA	33 Underperform	$3.76B	―	-60.45%	―	117.83%	-18.91%

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.