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Molecular Partners (MOLN)
NASDAQ:MOLN
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Molecular Partners
(NASDAQ:MOLN)
Rating:47Neutral
Price Target:
$4.00
▲(4.17%Upside)
Positive Factors
Financial Outlook
MOLN has CHF 131M cash and cash equivalents, which will be sufficient to fund its runway well into the future.
Partnerships
MOLN has the added advantage of a marquee partner in Orano Med, providing nearly unlimited supply of alpha emitter lead-212.
Regulatory Progress
MOLN announced that the previously planned Phase 0 imaging study for MP0712 is no longer necessary following discussions with the FDA, allowing the company to proceed directly into a Phase I dose escalation study.
Negative Factors
Safety Concerns
3 investigator-assessed DLTs were recorded (2 in DR7 and 1 in DR8), and 1 DLT (fatal pulmonary hemorrhage in context of disseminated intravascular coagulation) in DR8 was confirmed by the Dose Escalation Review Committee, resulting in a TD decrease for subsequent patients in DR8.
Workforce Reduction
MOLN announced that the company intends to reduce its current workforce by no more than 40 positions, representing up to ~24% of all headcounts.
Molecular Partners (MOLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$154.80M
Dividend YieldN/A
Average Volume (3M)2.63K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-67.23%
EPS Growth4.11%
CountryUS
Employees158
SectorHealthcare
Sector Strength59
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.36
Shares Outstanding40,374,640
10 Day Avg. Volume2,278
30 Day Avg. Volume2,634
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.84
Price to Sales (P/S)0.00
P/FCF Ratio1.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.38Price Target Upside118.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Molecular Partners Business Overview & Revenue Model
Company DescriptionMolecular Partners (MOLN) is a clinical-stage biopharmaceutical company specializing in the development of a novel class of therapeutics known as DARPin therapeutics. These are protein-based therapies designed to address unmet medical needs across various therapeutic areas, including oncology and infectious diseases. The company's innovative approach leverages the unique properties of DARPins to create potent and versatile treatment options.
How the Company Makes MoneyMolecular Partners makes money primarily through collaborations and licensing agreements with larger pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties based on the successful development and commercialization of DARPin-based therapies. Additionally, the company may receive funding from grants and research collaborations to advance its pipeline of therapeutic candidates. As its products progress through clinical trials, Molecular Partners aims to generate significant revenue from successful market launches and sales of approved therapies.
Molecular Partners Earnings Call Summary
Earnings Call Date:Mar 06, 2025
(Q4-2024)
| % Change Since: -21.63%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in Molecular Partners' programs, particularly in the radio DARPin franchise and the improved efficacy of the 533-DARPIn program. The expansion of the Orano Med collaboration and strong financial position further bolster the company's outlook. However, the discontinuation of the Novartis collaboration and initial challenges with the T Cell Engager program were noted as setbacks. Overall, the highlights significantly outweigh the lowlights.Q4-2024 Updates
Positive Updates
Successful Year of Execution
Molecular Partners successfully executed their plans in 2024, advancing programs toward clinical readouts and expanding their collaboration with Orano Med.
Lead DARPin Program Progress
The radio DARPin franchise showed significant progress with the lead compound DLL3 targeting 712 passing all IND-enabling studies and ready to enter clinical trials.
Strategic Collaboration with Orano Med
Molecular Partners expanded their collaboration with Orano Med to secure isotope supply for 10 products, enhancing their radio DARPin franchise.
Strong Financial Position
Ending the year with CHF149 million in cash, the company is well-capitalized with a runway into 2027, ensuring continued investment in their pipeline.
Improved Efficacy in T Cell Engager Program
The 533-DARPIn program for AML showed promising results with three complete responses out of eight patients after adjustments in dosing regimen.
Negative Updates
Discontinuation of Novartis Collaboration
The collaboration with Novartis was discontinued after three years due to lack of strategic interest in the research targets.
Challenges with Initial T Cell Engager Results
The 533-DARPIn program initially faced underwhelming results due to target-mediated drug disposition problems, requiring adjustments in dosing.
Company Guidance
During the Molecular Partners Fourth Quarter and Full Year 2024 Results Call, several key metrics and strategic developments were highlighted. The company reported operating expenses of CHF 66 million for the year, which was within their guidance range of CHF 65 million to CHF 70 million. They ended the year with a cash balance of CHF 149 million, having raised CHF 20 million in a financing round in October, and reported a cash burn of approximately CHF 54 million for the year. This funding positions them well financially, with a runway extending into 2027. Revenue for 2024 was CHF 5 million, primarily from their collaboration with Novartis, which has now concluded. The company is advancing its radio DARPin program, with their lead candidate MP0712 set to begin clinical trials and dosimetry studies in 2025. The expansion of their collaboration with Orano Med was also a significant milestone, securing access to 10 product slots for the promising isotope Lead-212. Additionally, Molecular Partners is continuing to refine its T cell engager platform, with plans to densify dosing schedules and further investigate premedication strategies in upcoming trials.Molecular Partners Financial Statement Overview
Summary
Molecular Partners is experiencing significant financial challenges, with declining revenue, negative profitability margins, and ongoing net losses. Despite having a strong equity base and low leverage, the company struggles with profitability and sustainability due to negative free cash flow and operational inefficiencies.Income Statement
The company has experienced a decline in revenue over the past year, with a negative revenue growth rate of approximately -29.37% from 2023 to 2024. Gross profit margin is high at 100% in 2024 due to low total revenue, but net profit margin is negative due to substantial net losses, indicating challenges in controlling operational costs. EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.30
Negative
Balance Sheet
The balance sheet shows a relatively low debt-to-equity ratio of 0.02 in 2024, suggesting low leverage and financial risk. However, the equity ratio is high at 89.34%, indicating strong equity financing. Return on equity is negative due to net losses, which is a concern for profitability. Overall, the company has a solid equity base but struggles with profitability.45
Neutral
Cash Flow
The company reports negative free cash flow, which has slightly increased from the previous year's negative free cash flow. The operating cash flow to net income ratio is close to 1, indicating that cash flow performance aligns with net income losses. However, negative free cash flow is a concern for long-term sustainability.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.97M | 7.04M | 189.56M | 9.33M | 9.34M | Gross Profit |
| 4.97M | -40.81M | 138.81M | -46.39M | -46.73M | EBIT |
| -61.22M | -61.11M | 116.61M | -63.42M | -58.33M | EBITDA |
| -51.65M | -59.52M | 117.50M | -60.66M | -59.58M | Net Income Common Stockholders |
| -54.04M | -61.98M | 117.85M | -63.78M | -62.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 149.44M | 186.89M | 249.14M | 132.81M | 173.72M | Total Assets |
| 158.53M | 198.35M | 262.26M | 172.67M | 187.55M | Total Debt |
| 2.44M | 3.65M | 4.85M | 6.04M | 7.22M | Net Debt |
| -61.43M | -63.66M | -83.10M | -65.77M | -126.50M | Total Liabilities |
| 16.89M | 21.92M | 27.09M | 65.38M | 80.33M | Stockholders Equity |
| 141.64M | 176.43M | 235.17M | 107.29M | 107.22M |
| Cash Flow | Free Cash Flow | |||
| -59.97M | -59.81M | 117.15M | -92.26M | -30.67M | Operating Cash Flow |
| -59.25M | -59.01M | 118.57M | -90.95M | -28.98M | Investing Cash Flow |
| 40.49M | 44.64M | -101.12M | -22.24M | -21.75M | Financing Cash Flow |
| 14.43M | -1.17M | -1.57M | 50.58M | 113.20M |
Molecular Partners Technical Analysis
Neutral
3.84
Price Trends
3.87
Negative
4.29
Negative
4.87
Negative
Market Momentum
-0.05
Negative
49.91
Neutral
52.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOLN, the sentiment is Neutral. The current price of 3.84 is above the 20-day moving average (MA) of 3.82, below the 50-day MA of 3.87, and below the 200-day MA of 4.87, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 52.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MOLN.
Molecular Partners Risk Analysis
Molecular Partners disclosed 100 risk factors in its most recent earnings report. Molecular Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Molecular Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $5.38B | 3.27 | -45.10% | 3.30% | 16.81% | 0.02% | |
49 Neutral | $244.14M | ― | -19.94% | ― | ― | -14.76% | |
47 Neutral | $154.80M | ― | -40.40% | ― | -67.23% | 4.11% | |
47 Neutral | $221.97M | ― | -22.59% | ― | ― | 26.63% | |
43 Neutral | $123.44M | ― | -262.12% | ― | 239.92% | 79.41% | |
41 Neutral | $179.97M | ― | -160.99% | ― | -75.67% | -552.37% | |
38 Underperform | $273.19M | ― | -66.13% | ― | ― | 43.21% |
* Healthcare Sector Average
Performance Comparison
MOLN
Molecular Partners
3.84
-3.45
-47.33%
SGMO
Sangamo Biosciences
0.49
0.08
19.51%
ANNX
Annexon Biosciences
2.49
-2.87
-53.54%
IPHA
Innate Pharma
1.90
-0.20
-9.52%
DSGN
Design Therapeutics
3.84
0.02
0.52%
THRD
Third Harmonic Bio, Inc.
5.43
-7.52
-58.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.