Kronos Bio (KRON) AI Stock Analysis

• Market Cap: $41.16M
• Dividend Yield: N/A
• Average Volume (3M): 789.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 21.15%
• EPS Growth: 46.44%
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 60,969,215
• 10 Day Avg. Volume: 803,452
• 30 Day Avg. Volume: 789,863
• PEG Ratio: N/A
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.67
• Enterprise Value/Market Cap: -0.38
• Enterprise Value/Revenue: -0.44
• Enterprise Value/Gross Profit: -2.02
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $1.00
• Price Target Upside: 49.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ―

Kronos Bio faces significant challenges with ongoing unprofitability and a weak valuation. Financial performance is hindered by high operational costs and declining equity. Technical indicators suggest a bearish trend, further impacting the stock's outlook. However, recent corporate events, including a merger and lease termination, provide some positive strategic direction, slightly mitigating the overall negative sentiment.

Positive Factors

New Development Candidate

Kronos announced the nomination of KB-9798 as a development candidate for Sjogren's disease, initiating IND-enabling studies.

Preclinical Developments

Kronos is conducting IND-enabling studies for KB-9558 and expects to be IND-ready by the end of 2024, with potential therapeutic roles in HPV-driven cancers.

Strategic Planning

Kronos plans to implement significant expense reduction strategies while it explores potential avenues to maximize stakeholder value including acquisitions, mergers, or sales of assets.

Negative Factors

Clinical Development

Kronos is discontinuing development of istisociclib (KB-0742) due to CNS AEs in ovarian cancer patients.

Safety Concerns

Out of 7 enrolled PROC patients, 5 exhibited neurological events ranging from Grade 1-3 in severity, with 3 discontinuing treatment.

Kronos Bio Business Overview & Revenue Model

Company Description

Kronos Bio, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel cancer therapeutics. The company's product engine focuses on dysregulated transcription factors and the transcriptional regulatory networks that drive oncogenic activity. Its lead product candidate is entospletinib (ENTO), is an orally administered, selective spleen tyrosine kinase inhibitor for acute myeloid leukemia patients. The company planned registrational phase 3 clinical trial of ENTO in combination with induction chemotherapy in acute myeloid leukemia patients with NPM1 mutations. It is also developing KB-0742, an orally bioavailable inhibitor of cyclin dependent kinase 9 for the treatment of MYC-amplified solid tumors, which is in phase 1/2 clinical trial. The company was incorporated in 2017 and is headquartered in San Mateo, California.

How the Company Makes Money

Kronos Bio makes money through the research and development of its proprietary drug candidates, which are intended to be commercialized upon successful clinical trials and regulatory approval. The company's revenue model is primarily based on potential future product sales, licensing agreements, and partnerships with other pharmaceutical companies. Significant partnerships and collaborations may also provide upfront payments, milestone payments, and royalties upon successful commercialization of its therapies. As a clinical-stage company, Kronos Bio currently does not have any marketed products and thus relies on funding through investments, grants, and collaborations to sustain its operations and advance its drug development pipeline.

Kronos Bio Financial Statement Overview

Summary

Kronos Bio shows significant revenue growth of 56.6%, but remains unprofitable with a negative net profit margin of -874.0%. The balance sheet indicates some leverage with a debt-to-equity ratio of 0.28 and reduced financial stability. Despite liquidity strength, the negative operating cash flow underscores ongoing challenges in achieving profitability.

Income Statement

Kronos Bio has shown a significant increase in revenue from 2023 to 2024, with a revenue growth rate of approximately 56.6%. However, the company remains unprofitable with a negative net profit margin of -874.0% in 2024, indicating high operational costs relative to revenue. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges and high expenses.

Balance Sheet

The company's balance sheet reveals a challenging financial position with a debt-to-equity ratio of 0.28 in 2024, indicating some leverage but not excessive. However, the equity ratio decreased from 74.6% in 2023 to 70.4% in 2024, suggesting a decline in financial stability. The high level of cash and cash equivalents suggests strong liquidity, although there is an overall decrease in equity.

Cash Flow

Kronos Bio reports a 17.5% improvement in free cash flow from 2023 to 2024, indicating better cash management. The operating cash flow remains negative, highlighting ongoing challenges in generating cash from operations. The free cash flow to net income ratio is negative, reflecting substantial cash burn relative to earnings losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.85M	6.29M	0.00	0.00	0.00
	Gross Profit
5.59M	6.29M	-4.46M	-4.08M	-4.87M
	EBIT
-92.89M	-121.83M	-137.12M	-151.40M	-58.04M
	EBITDA
-61.72M	-119.69M	-128.74M	-147.00M	-79.69M
	Net Income Common Stockholders
-86.08M	-112.67M	-129.29M	-149.10M	-64.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.42M	173.00M	247.95M	339.51M	462.06M
	Total Assets
124.36M	213.28M	294.94M	391.48M	511.96M
	Total Debt
24.90M	28.27M	31.09M	33.76M	32.06M
	Net Debt
-59.67M	-36.05M	-44.88M	-305.75M	-430.00M
	Total Liabilities
36.78M	54.20M	50.44M	46.38M	46.45M
	Stockholders Equity
87.58M	159.08M	244.50M	345.10M	465.52M
Cash Flow		Free Cash Flow
-65.44M	-79.26M	-91.50M	-122.18M	-47.48M
	Operating Cash Flow
-65.44M	-78.58M	-90.93M	-117.92M	-37.91M
	Investing Cash Flow
85.44M	66.37M	-32.22M	63.72M	-160.24M
	Financing Cash Flow
245.00K	567.00K	851.00K	4.46M	415.61M

Kronos Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 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 KRON, the sentiment is Negative. The current price of 0.67 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.81, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRON.

Kronos Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%
KRON	46 Neutral	$41.16M	―	-59.49%	―	21.15%	46.44%
GANX	46 Neutral	$56.46M	―	-290.21%	―	-100.00%	44.28%
STRO	43 Neutral	$74.18M	―	-679.15%	―	-56.88%	-57.57%
PMVP	40 Underperform	$48.36M	―	-32.66%	―	―	21.33%
VRCA	38 Underperform	$59.48M	―	-1546.58%	―	-19.45%	31.22%
SER	38 Underperform	$56.91M	―	45.59%	―	34.04%	55.34%

Kronos Bio Corporate Events

Kronos Bio Announces Merger with Concentra Biosciences

On May 1, 2025, Kronos Bio announced a merger agreement with Concentra Biosciences, where Concentra will acquire Kronos Bio for $0.57 per share in cash plus a contingent value right (CVR). The merger, deemed beneficial by Kronos Bio’s Board of Directors, is expected to close mid-2025, subject to certain conditions including a tender offer for Kronos Bio’s outstanding shares and the availability of $40 million in net cash. The transaction aims to provide value to shareholders through potential proceeds from product dispositions and cost savings, with implications for Kronos Bio’s operational focus and shareholder returns.

Kronos Bio Announces Lease Termination Agreement

On April 8, 2025, Kronos Bio, Inc. announced a Lease Termination Agreement with MPVCA San Mateo LLC, ending their office lease at 1300 South El Camino Real, San Mateo, California, effective April 30, 2025. The agreement allows Kronos Bio to save on future rent obligations, paying $1.4 million instead of the $1.6 million due until the original lease expiration in August 2026, potentially impacting their financial operations positively.