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Eton Pharmaceuticals (ETON)
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Eton Pharmaceuticals (ETON) AI Stock Analysis

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ETON

Eton Pharmaceuticals

(NASDAQ:ETON)

Rating:60Neutral
Price Target:
$16.00
▲(4.10%Upside)
Eton Pharmaceuticals earns a score of 60, reflecting strong revenue growth and promising product pipeline developments. However, the company faces profitability challenges and a rich valuation. Positive corporate events and strategic initiatives offset some risks, positioning the company for potential future success.
Positive Factors
Commercial Execution
Expect a smooth launch due to the management’s strength in commercial execution.
Drug Approval
ET-600, if approved, will be the only FDA-approved oral liquid formulation of desmopressin.
Product Launch
Khindivi could potentially become the hydrocortisone formulation of choice for patients with adrenal insufficiency and gain adoption rapidly among caregivers and physicians.
Revenue Growth
Eton Pharmaceuticals has reported 16 sequential quarters of growth, with a 4Q top-line beat and 12% sequential growth.
Negative Factors
Competition
The company faces competition which is a risk factor for its Buy rating.
Risks and Challenges
Risks to the Buy rating include clinical, commercial, collaboration, dilution, legal and intellectual property, and competition.

Eton Pharmaceuticals (ETON) vs. SPDR S&P 500 ETF (SPY)

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 through the sale of its pharmaceutical products, which are distributed to hospitals, clinics, and healthcare providers. Key revenue streams include sales from its portfolio of FDA-approved drugs, licensing agreements with other pharmaceutical companies, and collaborative partnerships that may include milestone payments and royalties from marketed products. The company strategically focuses on niche markets with limited competition, allowing it to establish a strong presence and command premium pricing for its unique therapies. Significant partnerships with research institutions and biotech firms also contribute to its earnings by expanding its product pipeline and enhancing development capabilities.

Eton Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: -9.96%|
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 has demonstrated substantial revenue growth, doubling from 2022 to 2024. However, persistent profitability issues due to negative EBIT and net income indicate challenges in cost management. The balance sheet shows low leverage, but high liabilities pose a risk to financial flexibility. Improved cash flow management is evident, yet the conversion of earnings into cash remains inadequate.
Income Statement
60
Neutral
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.
Balance Sheet
55
Neutral
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.
Cash Flow
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue39.01M31.64M21.25M21.83M39.00K
Gross Profit23.41M21.06M14.32M19.21M-247.00K
EBITDA-1.45M-291.00K-6.49M-1.12M-26.46M
Net Income-3.82M-936.00K-9.78M-2.96M-28.83M
Balance Sheet
Total Assets76.12M31.74M25.03M27.46M26.32M
Cash, Cash Equivalents and Short-Term Investments14.94M21.39M16.30M14.41M21.30M
Total Debt29.92M5.40M6.52M6.70M7.14M
Total Liabilities51.70M16.26M11.95M9.84M10.66M
Stockholders Equity24.43M15.48M13.08M17.63M15.66M
Cash Flow
Free Cash Flow943.00K6.04M2.03M-7.98M-22.40M
Operating Cash Flow969.00K6.82M4.82M-4.72M-22.35M
Investing Cash Flow-40.01M-775.00K-2.79M-2.56M-50.00K
Financing Cash Flow32.59M-957.00K-134.00K391.00K31.63M

Eton Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.37
Price Trends
50DMA
16.02
Negative
100DMA
15.33
Positive
200DMA
13.84
Positive
Market Momentum
MACD
-0.12
Negative
RSI
54.53
Neutral
STOCH
68.81
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 15.37 is above the 20-day moving average (MA) of 14.63, below the 50-day MA of 16.02, and above the 200-day MA of 13.84, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 68.81 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$412.19M-22.95%40.88%-579.73%
57
Neutral
£4.95B7.05-62.36%104.54%34.03%6.31%
54
Neutral
$460.05M-47.44%80.70%46.66%
50
Neutral
$447.73M-48.98%-9.95%20.78%
49
Neutral
$388.48M-23.68%14.60%
42
Neutral
$416.02M-30.10%-343.40%
38
Underperform
$435.52M-48.22%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ETON
Eton Pharmaceuticals
15.40
11.82
330.17%
RGNX
RegenXBio
8.96
-5.37
-37.47%
TECX
Tectonic Therapeutic
22.32
4.68
26.53%
ITOS
iTeos Therapeutics
10.17
-7.04
-40.91%
ABSI
AbSci
2.89
-1.59
-35.49%
MBX
MBX Biosciences, Inc.
14.57
-7.08
-32.70%

Eton Pharmaceuticals Corporate Events

Product-Related Announcements
Eton Pharmaceuticals’ New Drug Application Accepted by FDA
Positive
Jul 8, 2025

On July 8, 2025, Eton Pharmaceuticals announced that its New Drug Application for ET-600, a patented desmopressin oral solution, was accepted for review by the FDA, with a target action date set for February 25, 2026. If approved, ET-600 will be the only oral liquid option for treating central diabetes insipidus in pediatric patients, addressing a significant unmet need and representing a potential high-value product launch for Eton in early 2026.

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.

Delistings and Listing Changes
Eton Pharmaceuticals Joins Russell 3000 and 2000 Indexes
Positive
Jun 27, 2025

On June 27, 2025, Eton Pharmaceuticals announced its inclusion in the Russell 3000® and Russell 2000® Indexes, effective after the U.S. market close on the same day. This milestone highlights the company’s significant shareholder value generation over the past year and is expected to enhance its visibility among investors, potentially impacting its market positioning positively.

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.

Executive/Board ChangesShareholder Meetings
Eton Pharmaceuticals Holds Annual Stockholders Meeting
Positive
Jun 10, 2025

On June 10, 2025, Eton Pharmaceuticals, Inc. held its Annual Meeting of Stockholders virtually. During the meeting, stockholders elected Paul V. Maier as a director for a three-year term and ratified Crowe LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight positively.

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.

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.

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.Date of analysis: Jul 19, 2025