Iterum Therapeutics (ITRM) AI Stock Analysis

• Market Cap: $30.29M
• Dividend Yield: N/A
• Average Volume (3M): 939.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: N/A
• EPS Growth: 57.08%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 52
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 44,656,906
• 10 Day Avg. Volume: 638,199
• 30 Day Avg. Volume: 939,868
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -46.41
• Enterprise Value/Ebitda: -2.91
• 1Y Price Target: $7.00
• Price Target Upside: 929.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 35 Underperform
• Price Target: ―

Iterum Therapeutics faces significant financial challenges with ongoing net losses and cash flow issues, despite positive developments such as FDA approval of ORLYNVAH. The technical indicators suggest weak market momentum, and valuation metrics reflect poor investment attractiveness. The potential market for ORLYNVAH and improved financial performance are notable positives, but strategic uncertainties and financial obligations weigh heavily on the stock's outlook.

Positive Factors

Market Need

ORLYNVAH is positioned to address a significant unmet need in the UTI space for safe and effective antibiotics.

Product Launch

The commercial launch of ORLYNVAH is set to take place by the end of August, with support from a partnership with EVERSANA for sales and commercial operations in the US.

Product Superiority

ORLYNVAH has demonstrated superiority to conventional antibiotics in late-stage clinical trials, providing a strong competitive edge.

Negative Factors

Financial Performance

Iterum reported 1Q25 results with a net loss of ($4.9M) and ended the period with $12.7M in cash, excluding additional financing.

Market Competition

A key challenge for Iterum may have been the overhang of the impending approval of Glaxo's gepotidacin, which could impact market dynamics.

Iterum Therapeutics Business Overview & Revenue Model

Company Description

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and IV formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Iterum Therapeutics makes money through the development and potential commercialization of its primary product candidate, sulopenem. The company's revenue model is expected to include income from the sale of sulopenem upon receiving regulatory approval, which would allow the company to market the drug to healthcare providers and institutions. Additionally, Iterum may pursue licensing agreements, strategic partnerships, and collaborations with other pharmaceutical companies to enhance distribution and commercialization efforts. These partnerships could provide upfront payments, milestone payments, and royalties based on sales, contributing significantly to the company's earnings. As a clinical-stage company, Iterum may also rely on funding from investors, grants, and other financial instruments to support its research and development activities until its products reach the market.

Iterum Therapeutics Financial Statement Overview

Summary

Iterum Therapeutics is struggling financially with consistent net losses, negative cash flows, and a weak balance sheet. The lack of revenue and profitability, coupled with financial instability, underlines significant challenges the company must address. Strategic realignment and operational improvements are essential to achieve a turnaround and create long-term value.

Income Statement

Iterum Therapeutics demonstrates significant financial challenges, evidenced by consistent net losses and negative EBIT over the past years. The absence of revenue and gross profit undermines the potential for profitability. The company faces difficulty in generating income, with no visible growth trajectory in revenue, indicating a need for strategic changes to reverse the negative trend.

Balance Sheet

The balance sheet reveals a precarious financial position with negative stockholders' equity and a high level of liabilities relative to assets. Although the company has managed to reduce net debt, the negative equity indicates financial instability and potential risk for stakeholders. This situation demands a comprehensive approach to improve financial health and sustain operations.

Cash Flow

Iterum Therapeutics exhibits negative operating and free cash flows, highlighting the challenge of maintaining liquidity without external financing. The reliance on financing activities for cash inflows suggests an unsustainable cash flow model. Improving cash generation from operations is crucial to stabilize cash flow and reduce dependency on external capital.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-1.28M	-254.00K	-1.75M	-1.80M	-2.10M	-161.00K
EBITDA	-20.38M	-18.70M	-34.58M	-39.97M	-83.20M	-36.01M
Net Income	-24.08M	-24.77M	-38.37M	-44.43M	-91.56M	-52.01M
Balance Sheet
Total Assets	34.01M	44.59M	26.26M	66.83M	91.51M	32.79M
Cash, Cash Equivalents and Short-Term Investments	13.03M	24.13M	23.93M	60.84M	81.34M	14.51M
Total Debt	32.56M	45.53M	18.96M	28.47M	24.90M	35.85M
Total Liabilities	37.90M	48.68M	32.66M	38.83M	41.27M	83.35M
Stockholders Equity	-3.89M	-4.08M	-6.40M	28.00M	50.23M	-50.56M
Cash Flow
Free Cash Flow	-15.04M	-26.77M	-39.34M	-18.54M	-15.90M	-54.54M
Operating Cash Flow	-15.04M	-26.77M	-39.33M	-18.47M	-15.84M	-54.53M
Investing Cash Flow	6.80M	18.21M	23.34M	13.96M	-54.59M	-11.00K
Financing Cash Flow	15.91M	26.69M	1.03M	-1.82M	83.13M	64.47M

Iterum Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITRM, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.83, and below the 200-day MA of 1.26, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 23.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITRM.

Iterum Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLNN	58 Neutral	$60.24M	―	-1738.36%	―	-35.29%	45.18%
XLO	54 Neutral	$36.27M	―	-277.74%	―	536.44%	63.68%
Sector *	51 Neutral	$7.95B	-0.40	-42.50%	2.21%	22.29%	-1.85%
ITRM	35 Underperform	$30.29M	―	607.06%	―	―	57.08%
CVM	27 Underperform	$83.85M	―	-328.04%	―	―	42.29%
CAMP	―	$30.64M	―		―	―	―
RADX	―	$43.49M	―	-100.72%	―	―	―

Iterum Therapeutics Corporate Events

Iterum Therapeutics Appoints New Board Members

On March 7, 2025, Iterum Therapeutics plc announced the appointment of Joseph J. Whalen to its Board of Directors, effective March 10, 2025. Mr. Whalen, with over 30 years of experience in the bio-pharmaceutical industry, will serve as a Class III director and join both the audit and compensation committees. His appointment ensures the company’s compliance with Nasdaq’s audit committee requirements. Additionally, David Kelly was appointed as Chairman of the Board, following the resignation of Ronald M. Hunt.