LAVA Therapeutics (LVTX) AI Stock Analysis

• Market Cap: $33.41M
• Dividend Yield: N/A
• Average Volume (3M): 800.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -18.89%
• EPS Growth: 46.31%
• Country: US
• Employees: 37
• Sector: Healthcare
• Sector Strength: 62
• Industry: Biotechnology
• EPS (TTM): -1.03
• Shares Outstanding: 26,305,296
• 10 Day Avg. Volume: 49,120
• 30 Day Avg. Volume: 800,447
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.05
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.25
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 3

LAVA Therapeutics faces significant financial hurdles, including persistent losses and declining equity, which weigh heavily on the stock score. The company's proactive restructuring plan offers a potential path to stability but underscores current financial stress. On the technical side, the stock shows moderate momentum, providing some support. Valuation remains a concern due to ongoing losses. The overall score reflects a cautious outlook.

Positive Factors

Financial Performance

The company reported license revenue of $5M and a net loss of $0.14 per share, better than the consensus estimate of revenue of $2.5M and a net loss of 0.30 per share.

Partnerships

A $5MM milestone payment was received from a partnership with JNJ, following the revelation of CD33 as the target for its partnered asset.

Strategic Review

Lava's ongoing strategic review may conclude in a value-accretive outcome for the company.

Negative Factors

Clinical Data

The company's sole remaining wholly-owned clinical asset, LAVA-1266, lacks supportive clinical data.

Program Risks

There is a great risk for LAVA-1266 to be de-prioritized to accommodate development of new programs in the event of acquiring new assets or undergoing a reverse merger.

Uncertainties

Uncertainties are generated regarding the company’s only clinical asset, LAVA-1266 for hematological malignancies, as it depends on the outcome of the strategic review.

LAVA Therapeutics Business Overview & Revenue Model

Company Description

LAVA Therapeutics N.V. is a clinical-stage biotechnology company focused on developing innovative therapies for cancer treatment. The company specializes in bispecific antibodies that activate gamma-delta T cells, a type of immune cell, to target and eliminate cancer cells. LAVA Therapeutics operates primarily in the healthcare sector, dedicating its efforts to advancing immuno-oncology treatments.

How the Company Makes Money

LAVA Therapeutics generates revenue through a combination of research and development collaborations, licensing agreements, and potential milestone payments associated with its proprietary bispecific gamma-delta T cell engaging antibody platform. The company enters partnerships with larger pharmaceutical companies to co-develop and commercialize its therapeutic candidates, which often includes upfront payments, research funding, and royalties on net sales if the products reach the market. Additionally, LAVA may receive government grants or other funding to support its research endeavors.

LAVA Therapeutics Financial Statement Overview

Summary

LAVA Therapeutics is facing significant financial challenges typical of many biotechnology firms in their growth phase. The company needs to address its cost structure and improve revenue generation to achieve profitability. While leverage remains low, the declining equity and persistent losses are concerns that need strategic focus.

Income Statement

LAVA Therapeutics has shown erratic revenue growth, with a drop from 2022 to 2023 followed by a recovery in 2024. However, the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges. Despite a gross profit margin that is positive, the firm struggles to control costs and generate profit.

Balance Sheet

The debt-to-equity ratio has been relatively low, indicating conservative use of debt. However, the stockholders' equity has been declining, and the equity ratio is decreasing, suggesting weakening financial stability. The return on equity remains negative, reflecting the company's inability to generate profit from shareholders' funds.

Cash Flow

Operating cash flow has been negative, though there was a slight improvement in 2024. Free cash flow remains negative, indicating that the company is struggling to generate cash from operations after capital expenditures. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting revenue into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.34M	11.98M	6.77M	19.39M	5.35M	3.75M
	Gross Profit
6.96M	11.98M	3.29M	19.39M	5.35M	-11.95M
	EBIT
-28.04M	-29.69M	-43.25M	-34.84M	-43.61M	-14.67M
	EBITDA
-27.38M	0.00	-40.42M	-30.88M	-41.02M	-14.65M
	Net Income Common Stockholders
-27.64M	-25.11M	-41.97M	-31.91M	-42.35M	-15.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.54M	76.58M	95.57M	132.87M	151.01M	19.43M
	Total Assets
0.00	80.83M	101.71M	143.43M	157.87M	25.16M
	Total Debt
0.00	395.00K	6.31M	5.45M	5.52M	5.01M
	Net Debt
6.54M	-34.62M	-37.92M	-94.88M	-145.50M	-14.42M
	Total Liabilities
0.00	53.09M	50.53M	57.38M	23.67M	15.80M
	Stockholders Equity
5.21M	27.75M	51.18M	86.04M	134.19M	9.36M
Cash Flow		Free Cash Flow
-18.16M	-19.57M	-39.70M	3.46M	-33.34M	-13.42M
	Operating Cash Flow
-28.26M	-19.54M	-38.97M	4.04M	-32.48M	-12.77M
	Investing Cash Flow
-7.18M	12.47M	-17.64M	9.35M	-49.37M	―
	Financing Cash Flow
-543.00K	-569.00K	-571.00K	283.00K	171.37M	24.20M

LAVA Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVTX, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.15, and below the 200-day MA of 1.53, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LVTX.

LAVA Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
IOVA	48 Neutral	$1.09B	―	-57.48%	―	13698.99%	31.46%
LVTX	47 Neutral	$33.41M	―	-63.12%	―	-18.89%	46.31%
ADAP	46 Neutral	$50.42M	―	-273.36%	―	194.23%	45.50%
IMTX	45 Neutral	$486.20M	51.74	3.73%	―	188.64%	―
FATE	42 Neutral	$90.54M	―	-54.21%	―	-78.55%	-0.92%
AFMD	42 Neutral	$11.01M	―	-151.46%	―	-95.23%	-325.89%

LAVA Therapeutics Corporate Events

LAVA Therapeutics Announces Restructuring Plan for 2025

On February 20, 2025, LAVA Therapeutics announced a restructuring plan to extend its capital resources and evaluate strategic alternatives, including a 30% workforce reduction expected to be completed by July 31, 2025. The company aims to maximize shareholder value by exploring various strategic options such as in-licensing, sales, or mergers, while continuing its clinical study of LAVA-1266 and maintaining partnerships with Pfizer and Johnson & Johnson.

LAVA Therapeutics to Transition to U.S. Domestic Issuer

LAVA Therapeutics announced that, effective January 1, 2025, it will transition from filing as a foreign private issuer to a U.S. domestic issuer with the U.S. Securities and Exchange Commission. This change will require the company to adhere to more detailed and prompt reporting standards, potentially impacting its operations and investor communications.