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LENZ Therapeutics (LENZ)
NASDAQ:LENZ
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LENZ Therapeutics
(NASDAQ:LENZ)
Rating:46Neutral
Price Target:―
Positive Factors
Market Opportunity
Analysts see a blockbuster opportunity for the product given the strong profile, large market, and lack of competitors.
Product Efficacy
The Phase II INSIGHT study and Phase III CLARITY studies of LNZ100 (aceclidine 1.75%) showed impressive efficacy with response rates of 71%-73% within a half hour of dosing and daylong durability.
Regulatory Progress
FDA regulatory interactions suggest LNZ100 approval is on track.
Negative Factors
Financial Concerns
The company ended 1Q25 with ~$185M in cash, which management believes should fund operations to post-launch positive operating cash flow.
Sales Strategy Challenges
Lenz is targeting optometrists for LNZ100 instead of ophthalmologists, learning from past launch failures in the industry.
LENZ Therapeutics (LENZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$793.02M
Dividend YieldN/A
Average Volume (3M)223.99K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue GrowthN/A
EPS Growth68.93%
CountryUS
Employees6
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.53
Shares Outstanding28,146,154
10 Day Avg. Volume138,440
30 Day Avg. Volume223,990
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)3.41
Price to Sales (P/S)0.00
P/FCF Ratio-11.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$47.43Price Target Upside68.31% 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 | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 0.00 | 0.00 | 15.00M | 0.00 | 0.00 | 0.00 | Gross Profit |
| -33.00K | -2.41M | 6.65M | -734.00K | -121.00K | 0.00 | EBIT |
| -58.61M | -73.11M | -105.64M | -60.44M | -13.50M | -29.00K | EBITDA |
| -58.55M | -122.24M | -97.29M | -70.03M | -68.21M | -29.00K | Net Income Common Stockholders |
| -49.77M | -124.65M | -101.05M | -70.76M | -68.37M | -109.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.82M | 185.86M | 268.23M | 376.98M | 19.82M | 6.00K | Total Assets |
| 22.56M | 188.46M | 321.90M | 401.99M | 22.56M | 6.00K | Total Debt |
| 0.00 | 362.00K | 5.79M | 0.00 | 0.00 | 2.21M | Net Debt |
| -19.82M | -185.50M | -41.94M | -376.98M | -19.82M | 2.20M | Total Liabilities |
| 32.36M | 4.87M | 25.61M | 12.14M | 32.36M | 2.22M | Stockholders Equity |
| -9.80M | 183.58M | 296.29M | 389.84M | -9.80M | -2.22M |
| Cash Flow | Free Cash Flow | ||||
| -59.86M | -100.86M | -94.57M | -58.59M | -10.27M | -19.00K | Operating Cash Flow |
| -59.39M | -90.01M | -87.98M | -52.85M | -8.72M | -19.00K | Investing Cash Flow |
| -154.48M | 226.35M | -241.86M | -5.74M | -1.54M | 0.00 | Financing Cash Flow |
| 199.00M | 190.00K | 597.00K | 417.47M | 30.08M | 0.00 |
LENZ Therapeutics Technical Analysis
Positive
28.18
Price Trends
25.66
Positive
25.11
Positive
26.31
Positive
Market Momentum
0.78
Positive
55.12
Neutral
59.04
Neutral
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 28.18 is above the 20-day moving average (MA) of 27.76, above the 50-day MA of 25.66, and above the 200-day MA of 26.31, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.04 is Neutral, 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 3 New Risks
1.
An active trading market for our common stock may never develop or be sustained. Q3, 2024
2.
If equity research analysts do not publish research or reports, or publish unfavorable research or reports, about us, our business, or our market, our stock price and trading volume could decline. Q3, 2024
3.
Our board of directors is authorized to issue and designate shares of our convertible preferred stock in additional series without stockholder approval. Q3, 2024
LENZ Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $5.14B | 3.03 | -44.09% | 2.83% | 16.75% | -0.06% | |
48 Neutral | $505.55M | ― | 34.94% | ― | ― | ― | |
46 Neutral | $793.02M | ― | -24.47% | ― | ― | 68.93% | |
45 Neutral | $738.73M | ― | -69.21% | ― | -13.76% | 57.73% | |
43 Neutral | $354.18M | ― | -23.46% | ― | 54.55% | 36.41% | |
42 Neutral | $643.67M | ― | -62.58% | ― | ― | 4.28% | |
40 Underperform | $675.52M | ― | -60.45% | ― | ― | 6.99% |
* Healthcare Sector Average
Performance Comparison
LENZ
LENZ Therapeutics
28.18
12.79
83.11%
PRTA
Prothena
6.58
-13.37
-67.02%
RCKT
Rocket Pharmaceuticals
6.27
-14.67
-70.06%
REPL
Replimune Group
8.35
3.17
61.20%
IMNM
Immunome
8.49
-6.13
-41.93%
BCAX
Bicara Therapeutics Inc.
9.27
-16.14
-63.52%
LENZ Therapeutics Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 11.21%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call presents a strong and positive outlook for LENZ Therapeutics, with significant progress in financial strength, pre-launch activities, and commercial readiness. Despite potential regulatory and economic challenges, the company appears well-prepared for the upcoming launch of LNZ100.Q1-2025 Updates
Positive Updates
Strong Financial Position
LENZ Therapeutics ended Q1 2025 with approximately $194.1 million in cash, cash equivalents, and marketable securities. They received net proceeds of $16.3 million from a block trade, further strengthening their financial position.
High Engagement in Pre-Launch Campaigns
The unbranded EYEAMSELECTIVE campaign generated strong engagement with over 2 million impressions and reached over 12,000 eye care professionals (ECPs).
Positive Feedback from Commercial Day
The Commercial Day at the NASDAQ market site received extremely positive feedback, with many investors and analysts attending. The event demonstrated the strength of LENZ’s commercial strategy.
Sales Force and Commercial Readiness
LENZ has hired over 40% of its sales force, with 97% having prior eye care or pharma experience. The goal is to have the full field team in place by July 1st.
Strong Clinical Data
Phase III CLARITY study showed 90% of participants noticed an improvement in near vision, and 75% indicated they would continue using LNZ100.
Negative Updates
Regulatory and Market Challenges
Potential challenges include tariffs and navigating the regulatory environment, although they have received favorable rulings regarding country of origin and duty-free status for LNZ100.
Economic Concerns
Concerns about potential recession impacts on discretionary spending, although management believes the product category is somewhat insulated.
Company Guidance
During the LENZ Therapeutics First Quarter 2025 Financial Results Conference Call, the management shared several key metrics and strategic updates. The company is preparing for the potential launch of LNZ100, with a PDUFA target action date set for August 8, 2025. LENZ has a strong financial footing with approximately $194.1 million in cash, cash equivalents, and marketable securities as of the end of Q1 2025, and expects to have over $185 million at PDUFA. The commercial strategy is structured around three pillars: enabling doctors to recommend LNZ100, empowering patients to request it by name, and ensuring a seamless path to access. The unbranded EYEAMSELECTIVE campaign has generated over 2 million online impressions and engaged more than 12,000 eye care professionals (ECPs). The sales force build-out is on track, with over 40% of offers accepted for the 88 sales territories. The company aims to have the full sales team in place by July 1, 2025. LENZ's Phase III CLARITY study showed that 90% of participants noticed an improvement in near vision, and 75% indicated they would continue using LNZ100 post-study. The company is targeting a $3 billion-plus market opportunity with an estimated 128 million Americans affected by presbyopia.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.