Education
About Us
Working with TipRanks
Follow Us
Ensysce Biosciences (ENSC)
NASDAQ:ENSC
Top Page
Ensysce Biosciences
(NASDAQ:ENSC)
Select Model
Select Model
Rating:32Underperform
Price Target:―
Ensysce Biosciences faces significant financial difficulties, with severe declines in revenue and negative profitability, heavily weighing on its overall stock score. The technical analysis indicates bearish momentum, though some indicators suggest a potential for reversal. Valuation remains unattractive due to negative earnings and lack of dividends. The company must address its financial challenges to improve its stock outlook.
Positive Factors
Innovative Technology Platforms
Ensysce's TAAP and MPAR platforms offer innovative solutions for pain management and opioid use disorders, providing a competitive edge in addressing the opioid crisis with safer, abuse-deterrent drugs.
Potential Revenue Streams
Ensysce's revenue strategy through licensing and partnerships with pharmaceutical companies can provide sustainable income streams, leveraging their technology to enhance drug safety and efficacy.
Addressing Public Health Crisis
By targeting the opioid crisis with its proprietary technologies, Ensysce positions itself as a key player in a critical public health area, potentially attracting government support and funding.
Negative Factors
Severe Financial Challenges
Ensysce faces significant financial difficulties, with declining revenues and negative profitability, which could hinder its ability to sustain operations and invest in growth.
High Financial Leverage
The company's high financial leverage and negative equity suggest potential insolvency risks, limiting its financial flexibility and ability to respond to market changes.
Negative Cash Flow
Negative cash flow from operations indicates that Ensysce is not generating enough cash to cover its operational expenses, relying on external funding, which is unsustainable long-term.
Ensysce Biosciences (ENSC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.27M
Dividend YieldN/A
Average Volume (3M)89.63K
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth1.51%
EPS Growth77.64%
CountryUS
Employees7
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.29
Shares Outstanding3,541,262
10 Day Avg. Volume106,568
30 Day Avg. Volume89,627
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)3.83
Price to Sales (P/S)2.73
P/FCF Ratio>-0.01
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit-1.24
Enterprise Value/Ebitda-2.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ensysce Biosciences Business Overview & Revenue Model
Company DescriptionEnsysce Biosciences, Inc., a clinical-stage pharmaceutical company, engages in developing various prescription drugs for severe pain relief in opioid addiction, misuse, abuse, and overdose in the United States. It develops products using Trypsin Activated Abuse Protection platform, an abuse-resistant opioid prodrug technology; and Multi-Pill Abuse Resistance platform, an over-dose protection opioid prodrug technology. The company is developing PF614, a TAAP prodrug candidate of oxycodone, which is in Phase II clinical trial for the treatment of acute or chronic pain; and PF614-MPAR, a combination product of PF614 and nafamostat that is in Phase I clinical trial for overdose protection against excessive oral ingestion, as well as an oral and inhalation drug product of nafamostat for use against coronaviral infections and other pulmonary diseases, such as cystic fibrosis. It is also developing PF329, an extended-release prodrug of hydromorphone that is similar to PF614; PF8001 and PF8026 are extended and immediate-release prodrugs of amphetamine for ADHD medication abuse; and PF26810, an extended-release prodrug of methadone for opioid use disorder. The company is based in La Jolla, California.
How the Company Makes MoneyEnsysce Biosciences makes money primarily through the development and commercialization of its proprietary drug formulations and technologies. The company's revenue model includes licensing agreements and partnerships with pharmaceutical companies interested in incorporating Ensysce's abuse-deterrent technologies into their own products. Additionally, Ensysce seeks to generate revenue through the direct sale of its developed pharmaceutical products once they receive regulatory approval. Significant partnerships with other biotech and pharmaceutical firms, as well as potential government funding or grants for addressing public health crises like the opioid epidemic, also play a role in the company's earnings strategy.
Ensysce Biosciences Earnings Call Summary
Earnings Call Date:Mar 15, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant clinical achievements, including FDA breakthrough designations and successful trial completions, against a backdrop of financial challenges and reduced funding. The company is making progress toward its goals but needs additional funding to maintain momentum.Q4-2023 Updates
Positive Updates
Significant Clinical Progress
2023 marked a year of exceptional clinical progress for Ensysce's next-generation analgesics, moving programs closer to commercialization.
FDA Breakthrough Therapy Designation
PF614-MPAR received breakthrough therapy designation from the FDA in January 2024, an exclusive classification that has been granted to less than 300 drugs.
Positive Phase II Studies
Completed Phase II trials for PF614 demonstrated efficacy in pain relief and provided data supporting Phase III study designs.
Strong Intellectual Property Portfolio
Ensysce has a global intellectual property portfolio of over 100 patents issued in 25 countries, ensuring protection and growth opportunities.
Financial Improvements
The company reduced its net loss from $25.1 million in 2022 to $10.6 million in 2023, indicating better financial management.
Negative Updates
Limited Cash Reserves
The company ended 2023 with $1.1 million in cash and cash equivalents, highlighting the need for additional funding to initiate Phase III trials.
Decreased Government Funding
Federal grants decreased from $2.5 million in 2022 to $2.2 million in 2023 due to the timing of research activities.
R&D Expense Reduction
Research and development expenses declined significantly, potentially impacting the pace of clinical development.
Company Guidance
During Ensysce Biosciences' Q4 2023 earnings call, the company provided detailed guidance on its advancements and future plans. Ensysce reported significant clinical progress with its next-generation opioid analgesics, focusing on the PF614 and PF614-MPAR products. The company completed five clinical trials for PF614, including a human abuse potential study and an analgesic efficacy study. Ensysce plans to initiate Phase III trials for PF614 in the second half of 2024, following FDA feedback. They also received breakthrough therapy designation for PF614-MPAR, highlighting its potential to prevent opioid overdose. Financially, Ensysce ended 2023 with $1.1 million in cash, supplemented by early 2024 warrant exercises and plans to raise additional funds before starting Phase III trials. The company’s R&D expenses decreased in 2023, totaling $7.6 million, with a focus on optimizing manufacturing and preparing for pivotal clinical trials.Ensysce Biosciences Financial Statement Overview
Summary
Overall, Ensysce Biosciences is facing severe financial challenges with declining revenues, negative profitability margins, and a heavily leveraged balance sheet. The company is reliant on external financing to sustain its operations, which poses a significant risk to long-term viability. Immediate strategic financial restructuring is recommended to stabilize the company's finances.Income Statement
Ensysce Biosciences has shown a significant decline in its revenue, with Total Revenue dropping to zero in the most recent fiscal year. The company is experiencing negative EBIT and EBITDA margins, indicating operational losses. The net profit margin is also negative, reflecting substantial losses. Revenue growth has been negative, showing a concerning trend for the business.5
Very Negative
Balance Sheet
The balance sheet reveals high financial leverage with a negative stockholders' equity, suggesting potential insolvency risks. The Debt-to-Equity ratio is unfavorable due to negative equity. However, the company retains a notable amount of cash and short-term investments, providing some liquidity. The equity ratio is negative, showing liabilities exceeding assets.15
Very Negative
Cash Flow
Cash flow from operations is deeply negative, indicating significant cash outflows are not being covered by operational activities. The Free Cash Flow is also negative, yet the company has managed to maintain positive financing cash flow, suggesting reliance on external funding. There is no visible growth in free cash flow, which is a concern for sustainability.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.49M | 5.21M | 2.23M | 2.52M | 3.53M | 3.93M |
| Gross Profit | -4.19M | -2.01M | -5.36M | -17.31M | 3.53M | 3.93M |
| EBITDA | -1.92M | -6.73M | -10.72M | -24.22M | -25.93M | 834.82K |
| Net Income | -10.97M | -7.99M | -10.61M | -24.17M | -29.08M | 56.77K |
Balance Sheet | ||||||
| Total Assets | 3.18M | 5.60M | 2.71M | 5.89M | 16.42M | 351.81K |
| Cash, Cash Equivalents and Short-Term Investments | 1.67M | 3.50M | 1.12M | 3.15M | 12.26M | 194.21K |
| Total Debt | 364.07K | 301.66K | 854.70K | 4.43M | 17.21M | 4.27M |
| Total Liabilities | 2.30M | 2.22M | 3.36M | 9.91M | 24.58M | 7.01M |
| Stockholders Equity | 1.20M | 3.71M | -322.86K | -3.71M | -7.88M | -6.44M |
Cash Flow | ||||||
| Free Cash Flow | -7.17M | -7.50T | -10.78M | -17.89M | -8.24M | -1.25M |
| Operating Cash Flow | -7.04M | -7.50T | -10.78M | -17.89M | -8.24M | -1.25M |
| Investing Cash Flow | -123.64K | 0.00 | 0.00 | 4.50K | 0.00 | 183.40M |
| Financing Cash Flow | 4.69M | 9.88T | 8.76M | 8.77M | 20.31M | 1.10M |
Ensysce Biosciences Technical Analysis
Negative
1.59
Price Trends
2.13
Negative
2.12
Negative
2.51
Negative
Market Momentum
-0.15
Positive
31.37
Neutral
21.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENSC, the sentiment is Negative. The current price of 1.59 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 2.13, and below the 200-day MA of 2.51, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 31.37 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENSC.
Ensysce Biosciences Risk Analysis
Ensysce Biosciences disclosed 48 risk factors in its most recent earnings report. Ensysce Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ensysce Biosciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $6.01M | ― | -24.80% | ― | 1371.65% | 64.13% | |
40 Neutral | $128.53M | ― | -587.58% | ― | -74.73% | 95.81% | |
32 Underperform | $6.27M | ― | -270.54% | ― | 1.51% | 77.64% | |
28 Underperform | $6.52M | -0.22 | -46.34% | ― | ― | 70.71% |
* Healthcare Sector Average
ENSC
Ensysce Biosciences
1.59
-6.00
-79.05%
NBY
NovaBay Pharma
1.06
0.68
178.95%
GLMD
Galmed Pharmaceuticals
1.07
-1.69
-61.23%
CYCN
Cyclerion Therapeutics
1.53
-4.82
-75.91%
SILO
Silo Pharma
0.46
-0.51
-53.09%
ALZN
Alzamend Neuro
2.06
-8.65
-80.77%
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.