PTC Therapeutics (PTCT) AI Stock Analysis

• Market Cap: $3.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.49
• Revenue Growth: 91.12%
• EPS Growth: N/A
• Country: US
• Employees: 939
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): 10.04
• Shares Outstanding: 79,257,020
• 10 Day Avg. Volume: 1,205,049
• 30 Day Avg. Volume: 1,076,383
• PEG Ratio: -1.01
• Price to Book (P/B): -7.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.38
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 6.47
• 1Y Price Target: $60.33
• Price Target Upside: 21.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: $54.00 ▲(8.98%Upside)

PTC Therapeutics exhibits strong growth potential with robust revenue performance and strategic planning highlighted in the earnings call. However, the negative equity position and mixed technical indicators present risks that slightly temper the overall outlook.

Positive Factors

Investor Confidence

A strong balance sheet with approximately $20 per share in net cash appears to be resonating with investors.

Market Potential

The approval comes with a broad label inclusive of all ages and disease severities, enhancing market potential.

Sales Potential

Meaningful upside to consensus based on survey results suggests higher sales potential for Sephience.

Negative Factors

Market Competition

There is a high unmet need with clear differentiation for sepiapterin, as current treatments like Kuvan and Palynziq have significant limitations.

Regulatory Risks

Safety, clinical, regulatory, competition and financing are all risks inherent in commercial stage biotech including PTCT.

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 proprietary pharmaceutical products. The company's key revenue streams include product sales, particularly from its flagship drugs designed to treat rare genetic disorders such as Duchenne muscular dystrophy and spinal muscular atrophy. Additionally, PTC Therapeutics engages in strategic collaborations and partnerships with other pharmaceutical companies, which can provide milestone payments, royalties, and licensing fees, further contributing to its earnings. The company's revenue is also supported by government grants and incentives for developing treatments for rare diseases.

PTC Therapeutics Financial Statement Overview

Summary

PTC Therapeutics shows a promising trajectory in terms of revenue growth and cash flow generation, with a strong gross profit margin and positive net income margin. However, the negative equity position and history of profitability issues are concerns for financial stability.

Income Statement

PTC Therapeutics has demonstrated substantial revenue growth, with the most recent TTM showing a significant increase in total revenue compared to previous periods. The gross profit margin is robust at approximately 96.5% in the TTM, indicating strong cost management. However, the company has historically struggled with profitability, as past net income figures have been negative, although the TTM shows a notable turnaround with a positive net income margin of 33.5%.

Balance Sheet

The balance sheet presents a mixed picture, with a concerning negative stockholders' equity in the TTM, indicating potential financial instability. The debt-to-equity ratio is not applicable due to negative equity, which is a risk factor. Despite this, the company has maintained a strong cash position, with cash and equivalents exceeding total debt, suggesting liquidity is not an immediate concern.

Cash Flow

PTC Therapeutics has shown strong cash flow performance, with positive operating cash flow in the TTM and a significant free cash flow, reflecting effective cash management and operational improvements. The free cash flow to net income ratio is favorable, indicating strong cash generation relative to reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	806.78M	937.82M	698.80M	538.59M	380.77M
Gross Profit	1.71B	749.38M	872.34M	654.12M	506.26M	361.82M
EBITDA	833.62M	-120.46M	-330.34M	-367.78M	-374.44M	-297.00M
Net Income	594.84M	-363.30M	-626.60M	-559.02M	-523.90M	-438.16M
Balance Sheet
Total Assets	2.66B	1.71B	1.90B	1.71B	1.94B	2.21B
Cash, Cash Equivalents and Short-Term Investments	2.03B	1.14B	876.74M	410.70M	773.38M	1.10B
Total Debt	389.62M	389.30M	2.23B	703.63M	431.43M	420.44M
Total Liabilities	2.84B	2.80B	2.71B	2.05B	1.94B	1.73B
Stockholders Equity	-185.76M	-1.10B	-818.55M	-347.09M	1.44M	481.98M
Cash Flow
Free Cash Flow	744.24M	-114.19M	-279.04M	-509.11M	-336.66M	-250.05M
Operating Cash Flow	691.65M	-107.69M	-158.42M	-356.65M	-251.33M	-194.07M
Investing Cash Flow	-25.25M	44.18M	-176.74M	290.18M	219.18M	-561.55M
Financing Cash Flow	264.74M	255.87M	646.40M	167.95M	20.88M	668.72M

PTC Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.55
• 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 Neutral. The current price of 49.55 is below the 20-day moving average (MA) of 50.47, above the 50-day MA of 48.12, and above the 200-day MA of 45.70, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 30.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTCT.

PTC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	69 Neutral	$3.87B	7.61	33.08%	―	91.12%	―
RYTM	65 Neutral	$3.96B	―	-418.97%	―	48.88%	39.30%
SWTX	61 Neutral	$3.54B	―	-51.57%	―	730.42%	31.63%
ACLX	58 Neutral	$3.53B	―	-35.56%	―	-41.66%	-180.15%
RNA	54 Neutral	$3.60B	―	-34.19%	―	-17.87%	-1.89%
Sector *	51 Neutral	$7.41B	0.32	-61.11%	2.34%	16.99%	1.69%
RARE	47 Neutral	$3.54B	―	-386.33%	―	33.46%	26.72%

PTC Therapeutics Corporate Events

PTC Therapeutics Elects Directors at Annual Meeting

PTC Therapeutics held its Annual Meeting on June 17, 2025, where stockholders elected three Class III directors to serve until the 2028 annual meeting. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. The stockholders also approved a non-binding advisory proposal on named executive officer compensation.

The most recent analyst rating on (PTCT) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on PTC Therapeutics stock, see the PTCT Stock Forecast page.

PTC Therapeutics Reports Strong Q1 2025 Financial Results

PTC Therapeutics reported strong financial results for the first quarter of 2025, with a total net product and royalty revenue of $190 million. The company highlighted a positive CHMP opinion for Sephience, which is expected to enhance its global market launch. PTC’s cash position of over $2 billion supports its commercial and R&D activities, aiming for cashflow breakeven without additional capital. The company also updated its full-year 2025 financial guidance, anticipating revenue between $650 million and $800 million, driven by existing and potential new product launches.

PTC Therapeutics Reports Positive Phase 2 Study Results

PTC Therapeutics announced positive results from its Phase 2 PIVOT-HD study of PTC518 for Huntington’s disease, achieving the primary endpoint of reducing blood Huntingtin protein levels. The study showed favorable safety and tolerability, with dose-dependent clinical benefits observed over 12 and 24 months, potentially positioning PTC518 as a disease-modifying therapy for Huntington’s disease.

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.