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Eton Pharmaceuticals Inc (ETON)
NASDAQ:ETON
Top Page
Eton Pharmaceuticals
(NASDAQ:ETON)
56Neutral
Positive Factors
Market Expansion
If successful in obtaining a label expansion for Increlex, the eligible patient population could grow from approximately 200 to 1,000, significantly boosting potential revenue.
Product Launch
Eton Pharmaceuticals is on track to launch ET-400, a hydrocortisone oral solution, which is expected to address issues with the current granule texture and drive robust adoption.
Revenue Growth
Management projects peak combined revenue of ET-400 and ALKINDI SPRINKLE to exceed $50 million annually.
Strategic Acquisitions
Recent acquisitions of Galzin, Increlex, and Amglidia are expected to be major revenue drivers in the near and long term.
Negative Factors
Operational Challenges
The reaffirmation of Galzin's re-launch strategy and ET-400 guidance suggests continued readiness for the market, minimizing the impact of the launch delay.
Regulatory Challenges
The 3-month PDUFA delay is unrelated to clinical or manufacturing issues, which suggests no significant setbacks for Eton Pharmaceuticals.
Eton Pharmaceuticals (ETON) vs. S&P 500 (SPY)
Market Cap
$348.09M
Dividend YieldN/A
Average Volume (3M)253.80K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth23.29%
EPS Growth-309.12%
CountryUS
Employees31
SectorHealthcare
Sector Strength62
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.15
Shares Outstanding26,817,535
10 Day Avg. Volume260,967
30 Day Avg. Volume253,802
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.78
Price to Cash Flow (P/CF)-124.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.00Price Target Upside111.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Eton Pharmaceuticals Business Overview & Revenue Model
Company DescriptionEton Pharmaceuticals, Inc. is a specialized pharmaceutical company focused on developing and commercializing innovative treatments for rare diseases and niche therapeutic areas. The company operates in the healthcare sector, with a core emphasis on the development and distribution of prescription medications. Eton Pharmaceuticals aims to address unmet medical needs by bringing novel and effective treatments to market, with a portfolio that includes proprietary and licensed products designed to enhance patient outcomes.
How the Company Makes MoneyEton Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's revenue model is centered around the commercialization of its proprietary and licensed drugs, which are often developed for specific patient populations with rare or difficult-to-treat conditions. Eton partners with healthcare providers, pharmacies, and distributors to ensure its products reach the intended market. Additionally, the company may engage in strategic partnerships and licensing agreements with other pharmaceutical companies to expand its product offerings and distribution network. These collaborations can provide upfront payments, milestone payments, and royalties, contributing to the company's overall earnings.
Eton Pharmaceuticals Financial Statement Overview
Summary
Eton Pharmaceuticals shows promising revenue growth but struggles with profitability. Balance sheet stability is supported by low leverage, yet the high liabilities are a risk. Cash flow management has improved, but further efforts are needed to convert earnings into cash. Overall, the financial outlook is mixed, with positive trends in revenue but challenges in profitability and financial flexibility.Income Statement
Eton Pharmaceuticals has shown significant revenue growth, with a notable increase from $21.3 million in 2022 to $39 million in 2024. However, profitability remains a concern as indicated by negative EBIT and net income, which suggests challenges in cost management or market competition.60
Neutral
Balance Sheet
The balance sheet reveals a relatively stable equity base, with stockholders' equity increasing to $24.4 million in 2024. The debt-to-equity ratio is low, indicating low leverage, but the company faces high liabilities compared to assets, which may impact future financial flexibility.55
Neutral
Cash Flow
Positive free cash flow in 2024, at $943,000, marks an improvement compared to previous years, suggesting better cash management. However, the operating cash flow to net income ratio is low, indicating that net income is not translating effectively into cash flow.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 39.01M | 31.64M | 21.25M | 21.83M | 39.00K | Gross Profit |
| 23.41M | 21.06M | 14.32M | 19.21M | -247.00K | EBIT |
| -2.60M | -1.19M | -8.26M | -1.50M | -27.11M | EBITDA |
| -2.60M | -291.00K | -6.49M | -1.12M | -26.46M | Net Income Common Stockholders |
| -3.82M | -936.00K | -9.78M | -2.96M | -28.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 14.94M | 21.39M | 16.30M | 14.41M | 21.30M | Total Assets |
| 76.12M | 31.74M | 25.03M | 27.46M | 26.32M | Total Debt |
| 107.00K | 5.40M | 6.52M | 6.70M | 7.14M | Net Debt |
| -14.83M | -15.99M | -9.78M | -7.71M | -14.15M | Total Liabilities |
| 51.70M | 16.26M | 11.95M | 9.84M | 10.66M | Stockholders Equity |
| 24.43M | 15.48M | 13.08M | 17.63M | 15.66M |
| Cash Flow | Free Cash Flow | |||
| 943.00K | 6.04M | 2.03M | -7.98M | -22.40M | Operating Cash Flow |
| 969.00K | 6.82M | 4.82M | -4.72M | -22.35M | Investing Cash Flow |
| -40.01M | -775.00K | -2.79M | -2.56M | -50.00K | Financing Cash Flow |
| 32.59M | -957.00K | -134.00K | 391.00K | 31.63M |
Eton Pharmaceuticals Technical Analysis
Negative
13.26
Price Trends
15.40
Negative
13.75
Negative
9.43
Positive
Market Momentum
-0.57
Positive
36.21
Neutral
17.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Negative. The current price of 13.26 is below the 20-day moving average (MA) of 14.15, below the 50-day MA of 15.40, and above the 200-day MA of 9.43, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETON.
Eton Pharmaceuticals Risk Analysis
Eton Pharmaceuticals disclosed 45 risk factors in its most recent earnings report. Eton 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
Eton Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $321.42M | ― | 40.36% | ― | 13.57% | 89.73% | |
56 Neutral | $348.09M | ― | -19.16% | ― | 23.29% | -309.12% | |
54 Neutral | $306.44M | ― | -46.85% | ― | -100.00% | 72.73% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
46 Neutral | $349.08M | ― | -58.31% | ― | ― | ― | |
41 Neutral | $305.60M | ― | -58.04% | ― | -20.71% | 22.25% | |
34 Underperform | $314.28M | ― | -42.09% | ― | ― | -343.40% |
* Healthcare Sector Average
Performance Comparison
ETON
Eton Pharmaceuticals
13.26
9.66
268.33%
HRTX
Heron Therapeutics
2.23
-0.34
-13.23%
BNTC
Benitec Biopharma
12.55
7.01
126.53%
TECX
Tectonic Therapeutic
17.89
2.29
14.68%
MREO
Mereo Biopharma Group Plc
2.37
-1.04
-30.50%
ABSI
AbSci
2.48
-2.83
-53.30%
Eton Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: -13.28% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Eton Pharmaceuticals reported strong revenue growth and strategic acquisitions, with a clear path to increasing its market presence. However, challenges remain in managing SG&A expenses and overcoming historical access issues for some products.Highlights
Record-Breaking Revenue Growth
Eton Pharmaceuticals reported its 16th consecutive quarter of sequential product sales growth with Q4 2024 revenue at $11.6 million, marking a 59% year-over-year increase.
Successful Acquisitions
The acquisitions of Acrolex and Galzum are expected to significantly impact 2025 revenue, with immediate integration into the company's growth strategy.
Strong Financial Outlook
Eton Pharmaceuticals expects to reach $100 million in annual revenue in the near term and projects an 80 million dollar annual revenue run rate by the end of 2025.
Pipeline and Product Expansion
The company is preparing for significant launches, including ET400 and other pipeline products, with ET600 passing a pivotal clinical study.
Lowlights
High SG&A Expenses
SG&A expenses increased to $6.7 million in Q4, with expectations of further increases in 2025 due to infrastructure investments and product launches.
Challenges in Manufacturing
Delays in the development of the ZENIO auto-injector due to manufacturing issues, impacting the timeline for NDA submission.
Patient Access and Awareness Issues
Historically low awareness and access issues for products like Increlex and Galzum, requiring significant effort in re-education and patient support improvements.
Company Guidance
During the Eton Pharmaceuticals, Inc. conference call, the company provided robust guidance for 2025, highlighting several key metrics and strategic initiatives. Eton anticipates achieving an annual revenue run rate of approximately $80 million by the end of 2025, driven by the integration of recent acquisitions such as Increlex and Galzum, and the launch of ET400. The company expects a significant improvement in adjusted gross margins, targeting around 70% for 2025, due to the introduction of higher-margin products. SG&A expenses are projected to grow by 30-40% in 2025 to support the new product launches but will increase at a much slower rate than revenue. Eton has maintained a track record of 16 consecutive quarters of revenue growth and aims to reach $100 million in revenue in the near term with a long-term goal of achieving much higher levels as its pipeline progresses.Eton Pharmaceuticals Corporate Events
Other
Eton Pharmaceuticals to Host Virtual Investor Day
Neutral
Mar 18, 2025
Eton Pharmaceuticals has announced that its management will use presentation slides at the Company’s Investor Day, which will be held virtually on March 18, 2025. The information provided in these slides is not considered ‘filed’ under the Securities Exchange Act of 1934 or the Securities Act of 1933, unless specifically referenced in future filings.
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.