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Disc Medicine, Inc. (IRON)
:IRON
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Disc Medicine (IRON) AI Stock Analysis

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IRON

Disc Medicine

(NASDAQ:IRON)

Rating:43Neutral
Price Target:
Disc Medicine's stock score reflects the challenges faced by biotechnology firms in early stages, with significant cash burn and negative earnings. However, a strong cash position and low leverage provide some financial stability. Technical indicators suggest mixed signals with short-term consolidation but potential longer-term weakness. Valuation metrics indicate current unprofitability, a common trait for growth-focused biotech companies.
Positive Factors
Commercial Potential
IRON's streamlined regulatory path in EPP is expected to substantially accelerate time to commercialization while unlocking meaningful value for IRON shares.
Regulatory Approval
IRON announced positive feedback from the FDA following a pre-NDA meeting for lead asset bitopertin in erythropoietic protoporphyria.
Safety and Efficacy
Management emphasized the remarkable safety profile of bitopertin, with only mild adverse effects reported after 2+ years of exposure.
Negative Factors
Competitive and Financial Challenges
Risks to the stock rating and price target include safety, clinical, regulatory, competition, and financing challenges inherent to all development.
Development Risks
Disc Medicine's DISC-0974 is still under evaluation for safety and efficacy, which poses inherent risks in its development for myelofibrosis patients with anemia.
Regulatory Risks
Some risk will continue to be priced in for bitopertin, as full approval and marketing authorization outside the US depend on the ongoing confirmatory trial's positive outcome.

Disc Medicine (IRON) vs. SPDR S&P 500 ETF (SPY)

Disc Medicine Business Overview & Revenue Model

Company DescriptionDisc Medicine (IRON) is a biopharmaceutical company focused on the discovery, development, and commercialization of novel therapies for the treatment of hematologic diseases. The company's core products are designed to address conditions related to iron homeostasis, such as anemia and iron overload disorders. Disc Medicine aims to innovate within the hematology sector by developing drugs that can provide effective solutions for patients with unmet medical needs.
How the Company Makes MoneyDisc Medicine generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in research and development activities to bring new therapies to market, which involve clinical trials and regulatory approval processes. Once a drug is approved, Disc Medicine can earn revenue through direct sales, licensing agreements, and partnerships with other pharmaceutical companies. These collaborations can include milestone payments, royalties, and co-promotion deals. Additionally, the company may receive funding from grants or investment partnerships that support its research initiatives.

Disc Medicine Financial Statement Overview

Summary
Disc Medicine's financials reflect a biotechnology company in its growth phase, focused on research and development with no current revenue streams. While the company has a solid cash position and low leverage, the ongoing losses and cash burn are significant risks. Investors should weigh the potential for future profitability against current financial challenges.
Income Statement
15
Very Negative
The company has shown consistent negative net income and lacks revenue generation, which is typical for early-stage biotechnology firms. The EBIT and EBITDA margins are negative and have worsened over time, indicating increasing operational costs without revenue offset.
Balance Sheet
45
Neutral
The company has a strong cash position relative to its debt, reflected in a negative net debt. However, the stockholders' equity is significantly high compared to total assets, indicating a favorable equity ratio. The debt-to-equity ratio is low, showing limited leverage risk, but the company has negative earnings, impacting return on equity.
Cash Flow
35
Negative
The operating cash flow is negative, and the free cash flow has decreased, indicating continued cash burn. However, the company maintains a solid cash buffer from previous financing activities, which offsets immediate liquidity concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-156.00K-100.00K-300.00K-192.00K-322.00K
EBITDA-108.27M-91.03M-46.53M-35.78M-33.69M
Net Income-109.36M-76.43M-46.09M-41.01M-47.66M
Balance Sheet
Total Assets496.77M368.00M200.21M92.41M122.09M
Cash, Cash Equivalents and Short-Term Investments489.88M360.38M194.61M88.04M1.21M
Total Debt30.00M2.10M1.33M1.65M21.64M
Total Liabilities53.19M22.88M23.61M156.61M4.82M
Stockholders Equity443.59M345.12M176.60M-64.20M117.27M
Cash Flow
Free Cash Flow-94.43M-73.55M-42.40M-27.60M-32.73M
Operating Cash Flow-93.93M-73.46M-42.25M-27.53M-32.71M
Investing Cash Flow-292.33M-89.00K-151.00K-68.00K-22.00K
Financing Cash Flow218.31M239.38M148.98M89.93M34.25M

Disc Medicine Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.58
Price Trends
50DMA
52.18
Positive
100DMA
49.96
Positive
200DMA
53.80
Positive
Market Momentum
MACD
2.38
Negative
RSI
66.86
Neutral
STOCH
80.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRON, the sentiment is Positive. The current price of 60.58 is above the 20-day moving average (MA) of 56.32, above the 50-day MA of 52.18, and above the 200-day MA of 53.80, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 66.86 is Neutral, neither overbought nor oversold. The STOCH value of 80.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRON.

Disc Medicine Risk Analysis

Disc Medicine disclosed 82 risk factors in its most recent earnings report. Disc Medicine 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

Disc Medicine Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$2.35B3.5960.26%25.96%
64
Neutral
$1.77B-5.78%25.50%64.63%
60
Neutral
HK$17.07B6.10-7.44%2.88%11.55%-28.15%
56
Neutral
$2.23B-38.04%-82.38%-164.76%
54
Neutral
$1.79B-70.58%100.03%64.22%
48
Neutral
$1.79B18.68%41.67%75.79%
43
Neutral
$2.11B-23.34%-14.19%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRON
Disc Medicine
60.58
14.91
32.65%
BCRX
BioCryst
8.55
0.70
8.92%
AGIO
Agios Pharma
39.65
-8.40
-17.48%
ARQT
Arcutis Biotherapeutics
15.02
4.95
49.16%
BEAM
Beam Therapeutics
20.95
-12.19
-36.78%
IMCR
Immunocore Holdings
35.27
-4.86
-12.11%

Disc Medicine Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Disc Medicine Advances Bitopertin Trial for EPP
Positive
Jan 21, 2025

On January 21, 2025, Disc Medicine announced positive feedback from the FDA regarding their APOLLO post-marketing confirmatory trial for bitopertin, a treatment for erythropoietic protoporphyria (EPP) and X-linked protoporphyria (XLP). The meeting resulted in alignment on the trial design, which includes key features such as co-primary endpoints and a double-blind, placebo-controlled study. The company plans to initiate the trial by mid-2025 and anticipates submitting a New Drug Application in the second half of 2025 under the Accelerated Approval Program. This development marks a significant step forward in potentially providing a life-changing therapy for EPP patients, enhancing Disc Medicine’s position in the biopharmaceutical industry.

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: May 01, 2025