PTC Therapeutics (PTCT) AI Stock Analysis

• Market Cap: $3.69B
• Dividend Yield: N/A
• Average Volume (3M): 955.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: -13.97%
• EPS Growth: 43.51%
• Country: US
• Employees: 939
• Sector: Healthcare
• Sector Strength: 76
• Industry: Biotechnology
• EPS (TTM): -4.73
• Shares Outstanding: 78,869,370
• 10 Day Avg. Volume: 1,195,897
• 30 Day Avg. Volume: 955,599
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.59
• Price to Cash Flow (P/CF): -37.60
• 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: $66.70
• Price Target Upside: 54.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

PTC Therapeutics faces significant financial challenges with negative profitability and high leverage, which are major concerns for its financial health. Despite positive developments such as exceeding revenue guidance and strategic partnerships, uncertainties in regulatory approvals and market conditions could impact future performance. The technical indicators suggest potential bearish momentum, though valuation remains a concern due to negative earnings.

Positive Factors

International Markets

The company remains focused on continuing to expand Translarna’s commercial footprint in growth markets, including further expansion into South America, North Africa, and the Middle East, and emergence into new Asia-Pacific markets like Japan.

Pipeline Developments

Focus remains on the potential approvals of sepiapterin in PKU and additional data for PTC518 in Huntington's disease, suggesting promising developments in the pipeline.

Negative Factors

Market Competition

Emflaza faces pressure from generics and new competitive entrants.

Market Uncertainty

The US opportunity for Translarna currently sits outside of the model, indicating uncertainty in the market potential there.

Regulatory Decisions

The European Commission has adopted the final negative opinion from the Committee for Medicinal Products for Human Use, effectively removing Translarna's conditional marketing authorization in the EU.

PTC Therapeutics Business Overview & Revenue Model

Company Description

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines to patients with rare disorders. Its portfolio pipeline includes commercial products and product candidates in various stages of development, including clinical, pre-clinical and research and discovery stages, focuses on the development of treatments for multiple therapeutic areas, such as rare diseases. The company offers Translarna and Emflaza for the treatment of Duchenne muscular dystrophy in the European Economic Area and the United States, as well as to treat nonsense mutation Duchenne muscular dystrophy in Brazil and Russia; commercializes Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean; and markets Evrysdi for the treatment of spinal muscular atrophy in adults and children two months and older in Brazil. The company's splicing platform includes PTC518, which is being developed for the treatment of Huntington's disease. PTC Therapeutics, Inc. has collaborations with F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., as well as the Spinal Muscular Atrophy Foundation to advance drug discovery and development research in regenerative medicine; and Akcea Therapeutics, Inc. to commercialize Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean. PTC Therapeutics, Inc. was incorporated in 1998 and is headquartered in South Plainfield, New Jersey.

How the Company Makes Money

PTC 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 shows revenue growth but faces significant profitability challenges, with negative net income, high leverage, and negative equity. The company's financial instability and cash flow issues present considerable 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 43.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTCT, the sentiment is Negative. The current price of 43.24 is below the 20-day moving average (MA) of 53.15, below the 50-day MA of 51.11, and above the 200-day MA of 41.69, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 31.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PTCT.

PTC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRN	78 Outperform	$12.87B	27.40	8.05%	―	17.35%	151.40%
NBIX	68 Neutral	$10.26B	29.06	14.16%	―	24.81%	33.67%
SRPT	68 Neutral	$5.69B	22.84	19.71%	―	52.97%	―
ALNY	55 Neutral	$34.10B	―	-414.62%	―	22.97%	38.54%
IONS	49 Neutral	$4.53B	―	-93.03%	―	-10.48%	-18.79%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%
PTCT	48 Neutral	$3.69B	―	33.08%	―	-13.97%	43.51%

PTC Therapeutics Corporate Events

PTC Therapeutics Faces EU Setback on Translarna

On March 28, 2025, PTC Therapeutics announced that the European Commission adopted the negative opinion of the Committee for Medicinal Products for Human Use, deciding not to renew the conditional marketing authorization for Translarna (ataluren) in the European Economic Area. Despite this setback, the European Commission noted that individual EU member states could still allow the continued use of Translarna, highlighting its safety and benefits for patients with nonsense mutation Duchenne muscular dystrophy, a rare and severe genetic disorder.

PTC Therapeutics Exceeds 2024 Revenue Guidance

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.

PTC Therapeutics Surpasses Revenue Guidance for 2024

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.