PTC Therapeutics (PTCT) AI Stock Analysis

• Market Cap: $6.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.18
• Revenue Growth: 97.54%
• EPS Growth: N/A
• Country: US
• Employees: 939
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.20
• Shares Outstanding: 80,288,310
• 10 Day Avg. Volume: 1,556,179
• 30 Day Avg. Volume: 1,956,890
• PEG Ratio: 0.22
• Price to Book (P/B): -3.16
• Price to Sales (P/S): 4.30
• P/FCF Ratio: -30.38
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: 4.46
• 1Y Price Target: $77.20
• Price Target Upside: 2.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 9.31
• Revenue Forecast (FY): $1.80B

• Rating: 72 Outperform
• Price Target: $86.00 ▲(13.70% Upside)

PTC Therapeutics' strong earnings call and undervalued stock position are significant positives. However, financial risks due to high leverage and declining free cash flow growth temper the overall score. The technical outlook is stable, supporting a positive but cautious investment stance.

Positive Factors

Revenue Growth

The company's significant revenue growth rate of 80.6% indicates robust market demand and successful product adoption, supporting long-term business expansion.

Strong Product Launch

The successful launch of Sephience highlights PTC's ability to innovate and penetrate markets, reinforcing its competitive position in the biopharmaceutical sector.

Cash Position

A strong cash position provides PTC with the financial flexibility to invest in R&D and strategic growth initiatives, ensuring long-term sustainability.

Negative Factors

High Leverage

High leverage and negative equity can limit financial flexibility and increase risk, potentially impacting the company's ability to fund future growth.

Free Cash Flow Decline

Declining free cash flow growth suggests challenges in sustaining cash generation, which could affect the company's ability to invest in new opportunities.

Regulatory Challenges

Delays in government payer policy finalizations could impact revenue realization and create uncertainty in financial projections, affecting long-term planning.

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 pharmaceutical products, which include both commercially available drugs and those in various stages of clinical trials. The company's key revenue streams come from product sales, licensing agreements, and collaborations with other pharmaceutical companies. PTC has established significant partnerships with organizations such as the SMA Foundation and other biotech firms to enhance its research capabilities and expand its product pipeline. Additionally, the company benefits from grants and funding aimed at supporting its research in rare diseases, which further contributes to its overall earnings.

PTC Therapeutics Financial Statement Overview

Summary

PTC Therapeutics shows strong revenue growth and profitability turnaround, but high leverage and negative equity pose financial risks. Cash flow is efficient, though declining free cash flow growth is concerning.

Income Statement

PTC Therapeutics shows a strong TTM performance with a significant revenue growth rate of 80.6% and high profitability margins, including a gross profit margin of 99.66% and a net profit margin of 42.25%. The company has successfully turned around from previous annual losses to a positive net income, indicating a robust recovery and growth trajectory.

Balance Sheet

The balance sheet reveals high leverage with a negative stockholders' equity, resulting in a concerning debt-to-equity ratio of -2.63. Despite the negative equity, the company has managed to improve its asset base, but the high leverage poses a potential risk to financial stability.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio of 0.83 and a free cash flow to net income ratio of 0.98, indicating efficient cash generation relative to net income. However, the free cash flow growth rate is negative at -6.27%, suggesting challenges in sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78B	806.78M	937.82M	698.80M	538.59M	380.77M
Gross Profit	1.62B	749.38M	872.34M	654.12M	506.26M	361.82M
EBITDA	911.78M	-120.46M	-330.34M	-367.78M	-368.18M	-303.09M
Net Income	751.72M	-363.30M	-626.60M	-559.02M	-523.90M	-438.16M
Balance Sheet
Total Assets	2.64B	1.71B	1.90B	1.71B	1.94B	2.21B
Cash, Cash Equivalents and Short-Term Investments	1.71B	1.14B	876.74M	410.70M	773.38M	1.10B
Total Debt	2.49B	2.47B	2.23B	1.46B	1.27B	420.44M
Total Liabilities	2.80B	2.80B	2.71B	2.05B	1.94B	1.73B
Stockholders Equity	-155.76M	-1.10B	-818.55M	-347.09M	1.44M	481.98M
Cash Flow
Free Cash Flow	699.00M	-181.94M	-279.04M	-509.11M	-336.66M	-250.05M
Operating Cash Flow	715.47M	-107.69M	-158.42M	-356.65M	-251.33M	-194.07M
Investing Cash Flow	-628.28M	44.18M	-176.74M	290.18M	219.18M	-561.55M
Financing Cash Flow	55.06M	255.87M	646.40M	167.95M	20.88M	668.72M

PTC Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.64
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 75.64 is below the 20-day moving average (MA) of 77.86, above the 50-day MA of 72.06, and above the 200-day MA of 56.00, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 21.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTCT.

PTC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	72 Outperform	$6.06B	8.84	―	―	97.54%	―
TGTX	65 Neutral	$5.08B	11.29	111.96%	―	100.88%	―
MRUS	52 Neutral	$7.33B	―	-51.57%	―	57.54%	-36.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PCVX	50 Neutral	$5.84B	―	-20.83%	―	―	-5.21%
CRSP	40 Underperform	$5.54B	―	-25.33%	―	-81.10%	-99.21%
ACLX	40 Underperform	$4.20B	―	-47.18%	―	-76.96%	-425.41%

PTC Therapeutics Corporate Events

PTC Therapeutics Reports Strong Q3 2025 Financial Results

On November 4, 2025, PTC Therapeutics announced its financial results for the third quarter of 2025, highlighting the successful global launch of Sephience™ (sepiapterin) in the US and EU, which generated $19.6 million in revenue. The company’s total revenue for the quarter was $211 million, with strong contributions from its Duchenne muscular dystrophy franchise. The launch of Sephience is anticipated to establish it as the standard of care for PKU, supporting PTC’s growth and market positioning. PTC also narrowed its full-year 2025 revenue guidance to $750-$800 million, reflecting its strategic focus on expanding its product portfolio and enhancing shareholder value.