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PTC Therapeutics (PTCT)
NASDAQ:PTCT
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PTC Therapeutics
(NASDAQ:PTCT)56Neutral
Positive Factors
Financial Performance
Q3 revenue was $197MM beating consensus of $172MM driven by strong protection of Emflaza sales.
Partnership
PTC signed an exclusive global license agreement with NVS for PTC518 in Huntington's disease in exchange for $1B upfront, up to $1.9B in development, regulatory and sales milestones, a 40/60 profit share in the U.S., and double-digit tiered royalties ex-U.S.
Negative Factors
Regulatory Risk
Translarna's negative opinion from CHMP poses a risk, and remaining on the EU market appears tenuous.
PTC Therapeutics (PTCT) vs. S&P 500 (SPY)
Market Cap
$4.09B
Dividend YieldN/A
Average Volume (3M)771.95K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-13.97%
EPS Growth43.51%
CountryUS
Employees995
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.73
Shares Outstanding78,869,370
10 Day Avg. Volume809,399
30 Day Avg. Volume771,952
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.17
Price to Cash Flow (P/CF)-34.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.60Price Target Upside22.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
PTC Therapeutics Business Overview & Revenue Model
Company DescriptionPTC Therapeutics, Inc. is a biopharmaceutical company, which engages in the discovery and commercialization of clinically-differentiated medicines. It focuses on the development of new treatments for multiple therapeutic areas, including rare diseases and oncology. The company was founded by Allan Steven Jacobson and Stuart W. Peltz on March 31, 1998 and is headquartered in South Plainfield, NJ.
How the Company Makes MoneyPTC Therapeutics generates revenue primarily through the sale of its commercialized products, such as Translarna (ataluren) and Evrysdi (risdiplam), which are approved treatments for specific genetic disorders. Additionally, the company earns income from collaboration and licensing agreements with other pharmaceutical companies. These partnerships often involve milestone payments and royalties based on the successful development and commercialization of jointly developed therapies. PTC Therapeutics also invests in research and development to expand its pipeline of potential treatments, which could lead to future revenue streams upon regulatory approval and market launch.
PTC Therapeutics Financial Statement Overview
Summary
PTC Therapeutics is experiencing revenue growth but faces significant challenges in achieving profitability and maintaining financial stability. The company operates with high leverage and negative equity, indicating substantial risks despite growth potential.Income Statement
PTC Therapeutics has shown revenue growth in recent years, with a significant increase from 2020 to 2023. However, profitability remains a concern as the company consistently reports negative net income and negative EBIT and EBITDA margins. The net profit margin is deeply negative, indicating substantial losses.45
Neutral
Balance Sheet
The company's balance sheet reveals high leverage with a negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, which poses a risk. The negative return on equity further emphasizes the lack of profitability and potential challenges in generating shareholder value.30
Negative
Cash Flow
PTC Therapeutics has negative operating and free cash flows, reflecting challenges in generating cash from operations. The free cash flow to net income ratio and operating cash flow to net income ratio are negative, highlighting ongoing cash flow issues. Although there was some improvement in the free cash flow in 2024, it remains negative overall.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 806.78M | 937.82M | 698.80M | 538.59M | 380.77M | Gross Profit |
| 806.78M | 872.34M | 654.12M | 506.26M | 361.82M | EBIT |
| -302.57M | -349.40M | -439.93M | -374.94M | -397.88M | EBITDA |
| -120.46M | -330.34M | -367.78M | -374.44M | -297.00M | Net Income Common Stockholders |
| -363.30M | -626.60M | -559.02M | -523.90M | -438.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.14B | 876.74M | 410.70M | 773.38M | 1.10B | Total Assets |
| 1.71B | 1.90B | 1.71B | 1.94B | 2.21B | Total Debt |
| 389.30M | 2.23B | 703.63M | 431.43M | 420.44M | Net Debt |
| -390.41M | 1.64B | 292.92M | -341.94M | 211.63M | Total Liabilities |
| 2.80B | 2.71B | 2.05B | 1.94B | 1.73B | Stockholders Equity |
| -1.10B | -818.55M | -347.09M | 1.44M | 481.98M |
| Cash Flow | Free Cash Flow | |||
| -114.19M | -279.04M | -509.11M | -336.66M | -250.05M | Operating Cash Flow |
| -107.69M | -158.42M | -356.65M | -251.33M | -194.07M | Investing Cash Flow |
| 44.18M | -176.74M | 290.18M | 219.18M | -561.55M | Financing Cash Flow |
| 255.87M | 646.40M | 167.95M | 20.88M | 668.72M |
PTC Therapeutics Technical Analysis
Positive
51.93
Price Trends
47.50
Positive
45.31
Positive
39.90
Positive
Market Momentum
1.40
Negative
57.27
Neutral
69.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTCT, the sentiment is Positive. The current price of 51.93 is above the 20-day moving average (MA) of 50.64, above the 50-day MA of 47.50, and above the 200-day MA of 39.90, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 69.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTCT.
PTC Therapeutics Risk Analysis
PTC Therapeutics disclosed 52 risk factors in its most recent earnings report. PTC 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
PTC Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.45B | 32.37 | 8.05% | ― | 17.35% | 151.40% | |
69 Neutral | $9.98B | 45.17 | 19.71% | ― | 52.97% | ― | |
68 Neutral | $11.28B | 34.59 | 14.16% | ― | 24.81% | 33.67% | |
56 Neutral | $4.09B | ― | 33.08% | ― | -13.97% | 43.51% | |
50 Neutral | $31.45B | ― | -414.62% | ― | 22.97% | 38.54% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $5.24B | ― | -93.03% | ― | -10.48% | -18.79% |
* Healthcare Sector Average
Performance Comparison
PTCT
PTC Therapeutics
51.93
21.17
68.82%
ALNY
Alnylam Pharma
249.23
99.37
66.31%
BMRN
BioMarin Pharmaceutical
71.19
-14.70
-17.11%
IONS
Ionis Pharmaceuticals
33.75
-10.92
-24.45%
NBIX
Neurocrine
113.85
-21.48
-15.87%
SRPT
Sarepta Therapeutics
107.67
-13.11
-10.85%
PTC Therapeutics Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 2.69% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
PTC Therapeutics had a strong 2024 with notable financial performance, successful regulatory achievements, and strategic partnerships. However, there are challenges and uncertainties in regulatory approvals and market conditions that may impact future performance.Highlights
Strong Financial Performance
Fourth quarter revenue totaled $213 million, and full year 2024 revenue was $807 million, exceeding guidance. The company ended 2024 with over $1.1 billion in cash and received an additional $1 billion in January from the Novartis transaction.
Successful Regulatory Milestones
PTC submitted four approval applications to the FDA, all accepted for review, including KEBILIDI, Sepiapterin, Translarna, and Vatiquinone. KEBILIDI was approved in November.
Strategic Partnership with Novartis
PTC announced a collaboration with Novartis for the PTC518 Huntington's disease program, receiving $1 billion upfront and is eligible for up to $1.9 billion in development and sales milestones.
Exciting Prospects for 2025
PTC anticipates global launch of Sepiapterin, potential launch of Vatiquinone, and 12-month results from PIVOT-HD study.
Lowlights
Challenges in DMD Franchise
Though the DMD franchise continued strong performance, there were significant challenges for both Translarna and Emflaza with potential brand erosion from future generic entries.
Regulatory Uncertainty for Translarna in the EU
Translarna remains on the market in the EU, but the European Commission has not yet acted on the CHMP opinion, leading to uncertainty in future revenue.
Potential Revenue Impact
Initial 2025 revenue guidance of $600 million to $800 million, with uncertainty due to regulatory decisions and market dynamics.
Company Guidance
During the PTC Therapeutics fourth quarter and full-year 2024 earnings call, the company reported exceeding its revenue guidance with a total of $807 million in revenue for the year, including $213 million in the fourth quarter. The company ended the year with over $1.1 billion in cash, bolstered by an additional $1 billion received in January 2025 from the Novartis PTC-518 transaction. Looking ahead to 2025, PTC anticipates several key milestones, including multiple potential commercial launches and regulatory decisions in the US and globally. They have set a revenue guidance range of $600 million to $800 million for 2025. The company also highlighted successful clinical and regulatory achievements in 2024, with FDA approval of KEBILIDI for AADC deficiency and several other submissions under review. Additionally, PTC announced a collaboration with Novartis for the PTC518 Huntington's disease program, which includes up to $1.9 billion in potential development and sales milestones.PTC Therapeutics Corporate Events
Business Operations and StrategyFinancial Disclosures
PTC Therapeutics Exceeds 2024 Revenue Guidance
Positive
Feb 27, 2025
PTC Therapeutics announced its financial results for the fourth quarter and full year 2024, reporting a total revenue of $807 million for the year, exceeding its guidance. The company achieved all its clinical and regulatory milestones on schedule, including four NDA submissions accepted for filing, and closed a license and collaboration agreement with Novartis for its Huntington’s disease program. Despite a decrease in total revenue compared to 2023, PTC’s commercial team delivered strong performance, and the company ended the year with over $2 billion in cash, providing a solid foundation for future growth.
Business Operations and StrategyFinancial Disclosures
PTC Therapeutics Surpasses Revenue Guidance for 2024
Positive
Jan 13, 2025
PTC Therapeutics announced its financial performance and strategic milestones for 2024, showcasing unaudited revenues of approximately $814 million, surpassing guidance. Key achievements include successful regulatory applications, a significant license agreement with Novartis for the PTC518 program, and strong cash reserves to drive future growth. The company expects 2025 revenues between $600 million and $800 million, with specific plans for product launches and royalty revenues. PTC’s strategic moves position it for sustained growth in the rare disorders market, with several regulatory and clinical milestones anticipated in 2025.
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.