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Eton Pharmaceuticals Inc (ETON)
NASDAQ:ETON
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Eton Pharmaceuticals
(NASDAQ:ETON)
Rating:64Neutral
Price Target:
$18.50
▲(16.72%Upside)
Positive Factors
Market Expansion
Increlex has seen a significant increase in patient adoption since its relaunch, with potential for substantial market growth through label expansion.
Product Approval
Khindivi received FDA approval as replacement therapy in pediatric patients 5 years of age and older with adrenal insufficiency.
Revenue Growth
Eton Pharmaceuticals has reported 16 sequential quarters of growth, with a 4Q top-line beat and 12% sequential growth.
Negative Factors
Financial Guidance
Management provided conservative financial guidance of $80M in annual revenue run-rate by year-end 2025, suggesting potential for exceeding current expectations.
Market Challenges
Galzin's relaunch has been supported by resources aimed at increasing access, awareness, and affordability, contributing to patient migration from OTC products.
Product Development
The company is developing ET-700 to offer an extended-release formulation of zinc, targeting a significant patient population with potential for high revenue.
Eton Pharmaceuticals (ETON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$451.61M
Dividend YieldN/A
Average Volume (3M)361.93K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth40.88%
EPS Growth-579.73%
CountryUS
Employees31
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.06
Shares Outstanding26,817,535
10 Day Avg. Volume470,545
30 Day Avg. Volume361,927
Financial Highlights & Ratios
PEG Ratio5.55
Price to Book (P/B)20.82
Price to Sales (P/S)0.00
P/FCF Ratio-693.52
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit17.35
Enterprise Value/Ebitda-40.19
Forecast
1Y Price Target
$29.67Price Target Upside87.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Eton Pharmaceuticals Business Overview & Revenue Model
Company DescriptionEton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products for rare diseases. The company offers Biorphen, a phenylephrine injection for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; and Rezipres, a ready-to-use formulation of a molecule that is indicated for the treatment of clinically important hypotension occurring in the setting of anesthesia. It also offers Alkindi Sprinkle, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; EPRONTIA, a liquid formulation of topiramate; and Alaway Preservative Free, a preservative-free ophthalmic product to treat allergic conjunctivitis. In addition, the company develops Zonisamide Oral Suspension for the treatment of partial on-set seizures; Lamotrigine for Oral Suspension for the treatment of partial on-set seizures; cysteine injection; dehydrated alcohol injection; and Zeneo hydrocortisone autoinjector. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.
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 Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -7.15%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Eton Pharmaceuticals demonstrated strong revenue growth and successful product launches, particularly with Increlex and Galzin. However, the company faces challenges with increased operating expenses and a net loss for the quarter. Despite these lowlights, the overall performance and future prospects indicate a positive trend.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Eton Pharmaceuticals reported a first quarter revenue of $17.3 million, an increase of 117% compared to the first quarter of 2024.
Successful Product Launches
The acquisition and relaunch of Increlex and Galzin have been successful, with Increlex reaching over 90 active patients, reversing a declining trend.
Pipeline Advancements
Eton has advanced its pipeline candidates, with two potential approvals expected in the next 9 months, including ET-400 with a PDUFA date of May 28.
Out-licensing of Increlex International Rights
Eton licensed Increlex's international rights to Esteve Pharmaceuticals for $4.3 million, improving profitability and reinvesting in pipeline opportunities.
Strong Cash Flow
Eton generated $2.1 million of operating cash flow during the quarter and finished with $17.4 million of cash-on-hand.
Negative Updates
Increlex Patient Numbers
The number of Increlex patients had declined to 67 before the acquisition, with a peak of 185 a decade ago.
Tariff Exposure
Potential impact from tariffs on European purchases could affect total company gross margin by less than 100 basis points.
Increased Operating Expenses
R&D expenses increased to $1.2 million from $0.7 million and G&A expenses rose to $9.2 million from $5.2 million in the prior year period.
Net Loss
Eton reported a net loss of $1.6 million for the quarter compared to a net loss of $0.8 million in the prior year period.
Company Guidance
During Eton Pharmaceuticals' first quarter 2025 financial results conference call, CEO Sean Brynjelsen highlighted significant growth and strategic initiatives. Eton reported a 117% year-over-year revenue increase to $17.3 million, driven by product sales and licensing revenue. The company emphasized the potential of its new acquisitions, Increlex and Galzin, which have shown promising results, with Increlex reaching over 90 active patients. Eton aims to expand its product reach by harmonizing U.S. and EU labels, potentially benefiting up to 1,000 U.S. patients. The company is also preparing for the launch of ET-400, targeting a significant market opportunity in adrenal insufficiency, with a PDUFA date set for May 28. Eton's robust pipeline and strategic partnerships position it for continued growth, with expectations to reach a $100 million revenue run rate in the near term. Adjusted gross margins are projected to exceed 75% by 2028.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 48.33M | 39.01M | 31.64M | 21.25M | 21.83M | 39.00K | Gross Profit |
| 28.27M | 23.41M | 21.06M | 14.32M | 19.21M | -247.00K | EBIT |
| -2.27M | -2.60M | -1.19M | -8.26M | -1.50M | -27.11M | EBITDA |
| -1.35M | -1.45M | -291.00K | -6.49M | -1.12M | -26.46M | Net Income Common Stockholders |
| -4.58M | -3.82M | -936.00K | -9.78M | -2.96M | -28.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.42M | 14.94M | 21.39M | 16.30M | 14.41M | 21.30M | Total Assets |
| 84.03M | 76.12M | 31.74M | 25.03M | 27.46M | 26.32M | Total Debt |
| 87.00K | 29.92M | 5.40M | 6.52M | 6.70M | 7.14M | Net Debt |
| -17.33M | 14.98M | -15.99M | -9.78M | -7.71M | -14.15M | Total Liabilities |
| 59.58M | 51.70M | 16.26M | 11.95M | 9.84M | 10.66M | Stockholders Equity |
| 24.45M | 24.43M | 15.48M | 13.08M | 17.63M | 15.66M |
| Cash Flow | Free Cash Flow | ||||
| -732.00K | 943.00K | 6.04M | 2.03M | -7.98M | -22.40M | Operating Cash Flow |
| 5.53M | 969.00K | 6.82M | 4.82M | -4.72M | -22.35M | Investing Cash Flow |
| -36.26M | -40.01M | -775.00K | -2.79M | -2.56M | -50.00K | Financing Cash Flow |
| 33.37M | 32.59M | -957.00K | -134.00K | 391.00K | 31.63M |
Eton Pharmaceuticals Technical Analysis
Neutral
15.85
Price Trends
16.17
Negative
15.85
Positive
12.40
Positive
Market Momentum
0.07
Positive
36.54
Neutral
7.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Neutral. The current price of 15.85 is below the 20-day moving average (MA) of 18.53, below the 50-day MA of 16.17, and above the 200-day MA of 12.40, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 36.54 is Neutral, neither overbought nor oversold. The STOCH value of 7.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $451.61M | ― | -22.95% | ― | 40.88% | -579.73% | |
54 Neutral | $320.38M | ― | 40.36% | ― | 12.43% | 91.67% | |
54 Neutral | $420.01M | ― | -48.57% | ― | -100.00% | 83.98% | |
54 Neutral | $5.31B | 3.26 | -45.10% | 2.79% | 16.76% | 0.02% | |
51 Neutral | $386.50M | ― | -48.98% | ― | -9.95% | 20.78% | |
43 Neutral | $435.66M | ― | -92.00% | ― | ― | ― | |
42 Neutral | $430.59M | ― | -30.10% | ― | ― | -343.40% |
* Healthcare Sector Average
Performance Comparison
ETON
Eton Pharmaceuticals
15.85
12.23
337.85%
HRTX
Heron Therapeutics
2.12
-1.52
-41.76%
BNTC
Benitec Biopharma
16.17
8.67
115.60%
MREO
Mereo Biopharma Group Plc
2.65
-0.87
-24.72%
TECX
Tectonic Therapeutic
24.48
6.60
36.91%
ABSI
AbSci
2.97
-1.54
-34.15%
Eton Pharmaceuticals Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Eton Pharmaceuticals Gains FDA Approval for KHINDIVI
Positive
May 28, 2025
On May 28, 2025, Eton Pharmaceuticals announced the FDA approval of KHINDIVI, the first and only FDA-approved hydrocortisone oral solution for pediatric patients with adrenocortical insufficiency. This approval marks a significant advancement for patients and caregivers, offering a more precise and convenient dosing option. The commercial launch is expected in early June, with projected peak sales of KHINDIVI and ALKINDI SPRINKLE exceeding $50 million annually. The introduction of KHINDIVI is expected to enhance Eton’s market position in the rare disease treatment sector, providing a critical new tool for pediatric endocrinologists and improving treatment outcomes for patients.
The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.
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.