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Lenz Therapeutics, Inc. (LENZ)
:LENZ
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LENZ Therapeutics
(NASDAQ:LENZ)
46Neutral
Positive Factors
Clinical Trials
The Phase 3 CLARITY program achieved primary and key secondary endpoints with statistically significant ≥3-line BCVA near vision improvement without losing 1-line or more from distance visual acuity.
Market Potential
The company has proactively built its supply chain and has begun commercial-scale manufacturing of bulk product.
Product Launch Strategy
Lenz plans to use targeted advertising on streaming platforms and social media, unlike previous unsuccessful campaigns focused on linear TV.
Negative Factors
Approval Uncertainty
NDA review of LNZ100 continues as planned with no known or anticipated impacts from recent FDA disruptions.
Financials
The company ended the quarter with $209M in cash, which management believes should be enough to fund operations to post-launch positive operating cash flow.
LENZ Therapeutics (LENZ) vs. S&P 500 (SPY)
Market Cap
$795.49M
Dividend YieldN/A
Average Volume (3M)295.96K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue GrowthN/A
EPS Growth68.93%
CountryUS
Employees6
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.76
Shares Outstanding27,544,520
10 Day Avg. Volume279,724
30 Day Avg. Volume295,963
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.74
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-243.44
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$49.00Price Target Upside71.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
LENZ Therapeutics Business Overview & Revenue Model
Company DescriptionLENZ Therapeutics (LENZ) is a biopharmaceutical company focused on developing innovative treatments for eye diseases. The company operates in the healthcare sector, specifically targeting ophthalmology, with a primary emphasis on developing therapies for presbyopia and other vision-related disorders. LENZ leverages cutting-edge science and technology to create novel therapeutics that address unmet medical needs in the field of eye care.
How the Company Makes MoneyLENZ Therapeutics makes money primarily through the development and commercialization of its pharmaceutical products designed to treat eye diseases. The company generates revenue by advancing its drug candidates through clinical trials, obtaining regulatory approvals, and subsequently marketing these drugs to healthcare providers and patients. Additionally, LENZ may engage in strategic partnerships or licensing agreements with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. These collaborations can significantly contribute to the company's earnings, allowing LENZ to leverage external resources and market reach while focusing on its core research and development activities.
LENZ Therapeutics Financial Statement Overview
Summary
LENZ Therapeutics exhibits significant financial challenges, reflected in persistent losses and negative cash flows. Despite a strong equity position and minimal leverage, the firm's operational difficulties are evident in its income and cash flow statements. The biotechnology industry is inherently high-risk, and LENZ's current financial trajectory highlights the need for strategic pivots to achieve profitability and sustainable growth. Investors should be cautious, considering the ongoing financial instability and liquidity risks.Income Statement
The income statement reflects a challenging financial landscape for LENZ Therapeutics, as evidenced by consistent net losses and negative EBIT and EBITDA over multiple reporting periods. The absence of total revenue in recent periods signifies a lack of operational income, while net income remains negative, indicating sustained unprofitability. The firm's gross profit margin is also negative, further highlighting financial difficulties. These factors collectively illustrate significant financial hurdles.20
Very Negative
Balance Sheet
LENZ Therapeutics shows a strong equity position, with stockholders' equity accounting for a significant portion of its total assets, resulting in a healthy equity ratio. The debt-to-equity ratio is low, indicating minimal leverage and financial risk. While the company maintains substantial cash reserves, the consistent negative net income affects the return on equity. Overall, the balance sheet displays financial stability but is challenged by profitability concerns.50
Neutral
Cash Flow
The cash flow statement reveals significant cash outflows from operating activities, indicating operational challenges. Although financing activities have provided cash inflows, these are not yet translating into positive free cash flow or net income. The negative free cash flow growth rate suggests ongoing operational cash demands, while the operating cash flow to net income ratio reflects insufficient cash generation relative to net losses. These factors underscore liquidity concerns and the need for improved cash management.30
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 15.00M | 0.00 | 0.00 | 0.00 | Gross Profit |
| -2.41M | 6.65M | -734.00K | -121.00K | 0.00 | EBIT |
| -73.11M | -105.64M | -60.44M | -13.50M | -29.00K | EBITDA |
| -122.24M | -97.29M | -70.03M | -68.21M | -29.00K | Net Income Common Stockholders |
| -124.65M | -101.05M | -70.76M | -68.37M | -109.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 185.86M | 268.23M | 376.98M | 19.82M | 6.00K | Total Assets |
| 188.46M | 321.90M | 401.99M | 22.56M | 6.00K | Total Debt |
| 362.00K | 5.79M | 0.00 | 0.00 | 2.21M | Net Debt |
| -185.50M | -41.94M | -376.98M | -19.82M | 2.20M | Total Liabilities |
| 4.87M | 25.61M | 12.14M | 32.36M | 2.22M | Stockholders Equity |
| 183.58M | 296.29M | 389.84M | -9.80M | -2.22M |
| Cash Flow | Free Cash Flow | |||
| -100.86M | -94.57M | -58.59M | -10.27M | -19.00K | Operating Cash Flow |
| -90.01M | -87.98M | -52.85M | -8.72M | -19.00K | Investing Cash Flow |
| 226.35M | -241.86M | -5.74M | -1.54M | 0.00 | Financing Cash Flow |
| 190.00K | 597.00K | 417.47M | 30.08M | 0.00 |
LENZ Therapeutics Technical Analysis
Positive
28.52
Price Trends
24.00
Positive
25.90
Positive
25.92
Positive
Market Momentum
1.04
Negative
62.09
Neutral
80.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LENZ, the sentiment is Positive. The current price of 28.52 is above the 20-day moving average (MA) of 23.78, above the 50-day MA of 24.00, and above the 200-day MA of 25.92, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LENZ.
LENZ Therapeutics Risk Analysis
LENZ Therapeutics disclosed 64 risk factors in its most recent earnings report. LENZ Therapeutics 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
LENZ Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.28B | 3.75 | -42.72% | 2.86% | 17.70% | 2.03% | |
49 Neutral | $469.37M | ― | -23.34% | ― | 47.92% | 17.84% | |
49 Neutral | $764.83M | ― | -194.63% | ― | -35.50% | 3.81% | |
48 Neutral | $802.23M | ― | 34.94% | ― | ― | ― | |
46 Neutral | $795.49M | ― | -25.68% | ― | ― | 68.93% | |
42 Neutral | $742.42M | ― | -50.50% | ― | ― | 4.28% | |
40 Underperform | $813.58M | ― | -54.14% | ― | ― | 6.99% |
* Healthcare Sector Average
Performance Comparison
LENZ
LENZ Therapeutics
28.88
12.47
75.99%
PRTA
Prothena
8.72
-13.32
-60.44%
RCKT
Rocket Pharmaceuticals
7.86
-14.91
-65.48%
REPL
Replimune Group
9.64
3.08
46.95%
IMNM
Immunome
8.86
-6.11
-40.81%
BCAX
Bicara Therapeutics Inc.
14.71
-10.70
-42.11%
LENZ Therapeutics Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: 11.76%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant achievements in regulatory progress, financial health, and commercial preparation. Despite some challenges such as increased expenses and delayed market availability post-approval, the overall outlook remains optimistic with strong consumer interest and strategic positioning in the presbyopia market.Q4-2024 Updates
Positive Updates
Successful Year and Financial Position
LENZ Therapeutics reported a successful year in 2024, transitioning to a pre-commercial company with a strong financial position, ending with over $209 million in cash.
Regulatory Progress and Manufacturing Readiness
Made encouraging progress with the FDA on NDA review with no significant issues noted and manufacturing readiness achieved with initial commercial production started in February.
Medical Engagement and Intellectual Property
Engaged over 1,000 eye care professionals (ECPs) and strengthened patent estate with seven granted patents in the U.S., aiming for protection until at least 2044.
Pre-launch Commercial Strategy
Finalized the hiring of sales force leadership, attracted over 1,300 applications within 24 hours for 88 territory sales roles, and launched an unbranded campaign reaching over 30,000 ECPs with 2 million digital impressions.
Strong Consumer Interest
Phase 3 CLARITY study showed 90% of participants noticed vision improvement, with 75% indicating they would continue using LNZ100, highlighting significant consumer interest.
Negative Updates
Delayed Product Availability Post-Approval
Product availability in the market is expected in Q4 2025 despite anticipated FDA approval in August 2025, due to the time required for final labeling and packaging.
Increased Operating Expenses
Sales, general, and administrative expenses increased by 44% quarter-over-quarter, driven by increased commercial headcount and pre-launch activities.
Competitive Challenges
Acknowledgement of competition from other presbyopia treatments, though LENZ positions LNZ100 as a category of one.
Company Guidance
In the recent call, LENZ Therapeutics provided a detailed overview of its 2024 progress and outlined key metrics guiding its future outlook. The company concluded 2024 with a robust cash position of over $209 million, ensuring a solid financial runway towards the anticipated launch of LNZ100. Key milestones included the completion of the Phase 3 CLARITY study, a $30 million financing deal, and the acceptance of their NDA in October. Looking ahead, LENZ is targeting an August 2025 FDA approval, with commercial launch activities planned for Q4 2025. The company has made significant strides in regulatory processes, manufacturing readiness, and pre-launch commercial planning, having hired their sales force and conducted over 1,000 engagements with eye care professionals. With a market opportunity estimated at over $3 billion in the U.S. alone, LENZ aims to leverage its innovative LNZ100 product to capture a substantial share of the presbyopia treatment market.LENZ Therapeutics Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
LENZ Therapeutics Hosts Commercial Day for LNZ100
Neutral
Apr 15, 2025
LENZ Therapeutics is hosting a Commercial Day on April 15, 2025, to provide updates on the potential approval and launch of LNZ100. The event will cover commercialization strategies, supply chain readiness, and insights from Key Opinion Leaders and Eye Care Professionals.
Spark’s Take on LENZ Stock
According to Spark, TipRanks’ AI Analyst, LENZ is a Underperform.
LENZ Therapeutics faces significant financial challenges with persistent losses and negative cash flows, despite a strong equity position. The negative P/E ratio and lack of dividend suggest a high-risk valuation. Technical indicators further highlight bearish sentiment. However, positive strides in regulatory progress and a promising future outlook from the earnings call provide some optimism. Investors should weigh these risks against potential long-term rewards.
To see Spark’s full report on LENZ stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.