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Eton Pharmaceuticals Inc (ETON)
NASDAQ:ETON
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Eton Pharmaceuticals
(NASDAQ:ETON)
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Rating:56Neutral
Price Target:
$17.50
▲(5.61% Upside)
Eton Pharmaceuticals' overall stock score is primarily influenced by its strong revenue growth and positive earnings call sentiment. However, the stock faces challenges with profitability, technical indicators suggesting bearish momentum, and unattractive valuation metrics. The company's strategic initiatives and product performance provide a positive outlook, but financial and market challenges weigh on the overall score.
Positive Factors
Revenue Growth
Consistent and substantial revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business prospects.
Cash Generation
Strong cash generation supports operational flexibility and investment in growth initiatives, contributing to financial stability and resilience.
Product Portfolio Expansion
Expanding product portfolio enhances competitive positioning and addresses unmet medical needs, driving future revenue streams.
Negative Factors
Profitability Challenges
Ongoing net losses highlight challenges in achieving sustainable profitability, which may impact long-term financial health and investment capacity.
KHINDIVI Label Restriction
Regulatory restrictions on KHINDIVI limit market potential and adoption, affecting revenue growth in key demographic segments.
High Liabilities
High liabilities can constrain financial flexibility and increase risk, potentially limiting the company's ability to invest in growth opportunities.
Eton Pharmaceuticals (ETON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$439.00M
Dividend YieldN/A
Average Volume (3M)263.85K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth102.77%
EPS Growth-17.00%
CountryUS
Employees31
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.04
Shares Outstanding26,817,535
10 Day Avg. Volume243,920
30 Day Avg. Volume263,846
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)14.12
Price to Sales (P/S)8.84
P/FCF Ratio365.77
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue8.22
Enterprise Value/Gross Profit16.01
Enterprise Value/Ebitda436.99
Forecast
1Y Price Target
$30.00Price Target Upside81.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.39
Revenue Forecast (FY)$81.24M
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 commercialization of its pharmaceutical products. The company earns income by selling its developed medications directly to healthcare providers, pharmacies, and hospitals. Additionally, Eton may receive milestone payments and royalties from licensing agreements with larger pharmaceutical companies, which partner with Eton to develop and distribute specific products. These partnerships often involve shared responsibilities in development and marketing, allowing Eton to leverage the resources and networks of its partners. Furthermore, the company may benefit from government contracts and grants aimed at supporting the development of pediatric formulations, contributing to its overall revenue stream.
Eton Pharmaceuticals Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
Eton Pharmaceuticals experienced substantial revenue growth and strong performance from key products, leading to positive cash flow generation and profitability. However, the company faced challenges with net income, patient count for INCRELEX, and FDA restrictions on KHINDIVI. Despite these challenges, the overall outlook remains positive with strategic initiatives underway.Q3-2025 Updates
Positive Updates
Record Revenue Growth
Eton Pharmaceuticals reported third-quarter product revenue of $22.5 million, representing an increase of 129% year-over-year and 19% from the second quarter. This marks the 19th consecutive quarter of sequential product revenue growth.
Strong Performance of Key Products
ALKINDI SPRINKLE and Carglumic Acid contributed significantly to revenue growth, with new patient additions boosting sales. INCRELEX and GALZIN, recently acquired products, are also performing ahead of projections.
Cash Generation and Profitability
Eton Pharmaceuticals generated $12 million in cash from operations and reported an adjusted EBITDA of $2.9 million. Operating expenses were controlled, resulting in a reduction in adjusted SG&A expense from the second to the third quarter.
Successful Product Launches and Developments
The company successfully launched three high-value commercial products and submitted an NDA for ET-600. Eton also plans to expand the market for INCRELEX through harmonization of labels in the U.S. and EU.
Negative Updates
Net Loss Reported
Eton Pharmaceuticals reported a net loss of $1.9 million for the quarter, compared to net income of $0.6 million in the prior year period.
INCRELEX Patient Count Challenges
While INCRELEX revenue and patient count exceeded projections, the net active patient count remained flat due to a high number of patients aging out of treatment.
KHINDIVI Label Restriction
The FDA restricted KHINDIVI for patients under 5 years old due to limited safety data on certain inactive ingredients, affecting adoption rates among the largest unmet need demographic.
Lower Revenue Per INCRELEX Patient
The third quarter saw a less favorable payer mix for INCRELEX, resulting in lower revenue per patient compared to the second quarter.
Company Guidance
During the Eton Pharmaceuticals Third Quarter 2025 Financial Results Conference Call, the company reported a robust 129% year-over-year increase in third-quarter product revenue to $22.5 million, marking their 19th consecutive quarter of sequential revenue growth. Key growth drivers included ALKINDI SPRINKLE and Carglumic Acid, alongside newly acquired products INCRELEX and GALZIN. The company also generated $12 million in cash from operations during the quarter. They reported an adjusted EBITDA of $2.9 million, influenced by nonrecurring costs related to INCRELEX's ex-U.S. transition. Eton Pharmaceuticals aims for significant margin expansion, with expectations to achieve a 70% adjusted gross margin in the upcoming quarter. The CEO highlighted ongoing efforts to expand their market reach, including initiatives to harmonize the INCRELEX label between the U.S. and the EU and plans to conduct a bioequivalency study for KHINDIVI to potentially expand its label. The company also emphasized their commitment to business development, exploring opportunities to acquire additional products in strategically aligned ultra-rare disease markets.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 | 70.32M | 39.01M | 31.64M | 21.25M | 21.83M | 39.00K |
| Gross Profit | 36.12M | 23.41M | 21.06M | 14.32M | 19.21M | -247.00K |
| EBITDA | 1.32M | -1.45M | -291.00K | -6.49M | -1.03M | -26.46M |
| Net Income | -6.68M | -3.82M | -936.00K | -9.02M | -1.96M | -27.97M |
Balance Sheet | ||||||
| Total Assets | 104.51M | 76.12M | 31.74M | 25.03M | 27.46M | 26.32M |
| Cash, Cash Equivalents and Short-Term Investments | 37.12M | 14.94M | 21.39M | 16.30M | 14.41M | 21.30M |
| Total Debt | 3.26M | 29.92M | 5.40M | 6.52M | 6.70M | 7.14M |
| Total Liabilities | 81.38M | 51.70M | 16.26M | 11.95M | 9.84M | 10.66M |
| Stockholders Equity | 23.13M | 24.43M | 15.48M | 13.08M | 17.63M | 15.66M |
Cash Flow | ||||||
| Free Cash Flow | 21.01M | 943.00K | 6.04M | 2.03M | -7.98M | -22.40M |
| Operating Cash Flow | 21.31M | 969.00K | 6.82M | 4.82M | -4.72M | -22.35M |
| Investing Cash Flow | -38.42M | -40.01M | -775.00K | -2.79M | -2.56M | -50.00K |
| Financing Cash Flow | 33.97M | 32.59M | -957.00K | -134.00K | 391.00K | 31.63M |
Eton Pharmaceuticals Technical Analysis
Positive
16.57
Price Trends
17.25
Negative
17.63
Negative
16.48
Positive
Market Momentum
-0.26
Negative
49.85
Neutral
39.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Positive. The current price of 16.57 is above the 20-day moving average (MA) of 16.21, below the 50-day MA of 17.25, and above the 200-day MA of 16.48, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 39.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $439.00M | -66.52 | -34.17% | ― | 102.77% | -17.00% | |
54 Neutral | $738.59M | -4.29 | -76.88% | ― | 91.30% | 30.69% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | ― | ― | ― | ― | -100.00% | -61.86% | |
49 Neutral | $508.26M | -4.06 | -55.68% | ― | -33.09% | 3.38% | |
42 Neutral | $366.09M | -5.56 | -32.21% | ― | ― | 60.40% | |
38 Underperform | $1.37B | -14.54 | -24.43% | ― | ― | -44.79% |
* Healthcare Sector Average
ETON
Eton Pharmaceuticals
16.57
3.91
30.88%
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Eton Pharmaceuticals Corporate Events
Business Operations and Strategy
Eton Pharmaceuticals Joins Piper Sandler Healthcare Conference
Neutral
Dec 4, 2025
On December 4, 2025, Eton Pharmaceuticals, Inc. management will attend the Piper Sandler Annual Healthcare Conference in New York, presenting their corporate slide presentation. This participation is part of their engagement with investors and stakeholders, potentially impacting their market presence and investor relations.
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.