Q32 Bio (QTTB) AI Stock Analysis

• Market Cap: $20.86M
• Dividend Yield: N/A
• Average Volume (3M): 188.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -100.00%
• EPS Growth: 91.45%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -10.37
• Shares Outstanding: 12,197,615
• 10 Day Avg. Volume: 101,996
• 30 Day Avg. Volume: 188,711
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 21.84
• Price to Cash Flow (P/CF): -0.60
• 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: $11.25
• Price Target Upside: 557.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Q32 Bio's overall stock score reflects significant financial challenges, including negative revenue and high leverage. However, recent corporate events indicate potential growth opportunities through advancements in clinical trials, which could provide a positive outlook if successfully executed. The technical analysis and valuation highlight the current bearish sentiment and financial risks associated with the stock.

Positive Factors

Management Confidence

The decision to focus on bempikibart development seems to signal confidence in the drug.

Patient Satisfaction

Bempi is well tolerated and patients are satisfied with outcomes, indicating potential positive feedback from ongoing studies.

Negative Factors

Clinical Performance

Comparison with Pfizer's JAK inhibitor shows a significantly lower response rate for bempikibart, affecting its valuation.

Financial Challenges

QTTB will likely need to raise cash to move bempi forward in alopecia areata, indicating financial challenges ahead.

Stock Valuation

The data is not supportive of bempikibart valuation beyond current assumptions, with a 15% probability of achieving peak sales.

Q32 Bio Business Overview & Revenue Model

Company Description

Q32 Bio (QTTB) is a biotechnology company focused on developing therapies for patients with severe autoimmune and inflammatory diseases. The company operates in the biopharmaceutical sector, leveraging its expertise in immunology to create innovative treatments. Q32 Bio's core products and services involve research and development of monoclonal antibodies and other biologics designed to modulate the immune system and address underlying disease mechanisms.

How the Company Makes Money

Q32 Bio makes money primarily through the development and commercialization of its therapeutic products. The company's revenue model includes partnerships and collaborations with larger pharmaceutical companies, which may involve upfront payments, milestone-based payments, and royalties from the sales of developed drugs. Additionally, Q32 Bio may receive funding from grants and research collaborations, which contribute to its operational and developmental expenses. The company's earnings are significantly influenced by the success of its clinical trials and the subsequent approval and commercialization of its therapies.

Q32 Bio Financial Statement Overview

Summary

Q32 Bio's financial performance is weak, with declining revenues, persistent losses, and a negative cash flow situation. While there is a slight improvement in equity levels and reduced liabilities, the company faces significant operational and cash flow challenges, raising concerns about its ability to sustain operations.

Income Statement

Q32 Bio has demonstrated a concerning trend in its income statement metrics. The company has shown a significant decline in revenue over the years, from $33.97M in 2021 to $0 in the latest TTM period. Gross profit and net profit margins are negative, reflecting an inability to cover operational costs with existing revenues. The EBIT and EBITDA margins have also been consistently negative, indicating operational inefficiencies and a lack of profitability.

Balance Sheet

The balance sheet displays a mixed picture. The debt-to-equity ratio improved in the latest TTM period due to reduced liabilities and equity levels, but remains a concern given the company's negative equity in previous years. The equity ratio has been severely impacted by negative equity in past periods, although there is some recovery in the TTM period. The overall financial stability is questionable due to historical high leverage and negative equity.

Cash Flow

Cash flow metrics highlight significant challenges in cash management. The company had negative operating and free cash flows in recent periods, indicating a continuous drain on cash reserves. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash. Despite a high financing cash flow in the TTM period, reliance on external financing is not sustainable long-term without improving operational cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	1.16M	6.65M	33.97M	2.70M	1.67M
	Gross Profit
-244.00K	578.00K	4.05M	24.43M	2.70M	1.67M
	EBIT
-60.99M	-92.10M	-39.23M	-36.69M	-130.26M	-109.94M
	EBITDA
-53.36M	-86.50M	-38.85M	-86.22M	-121.36M	-103.63M
	Net Income Common Stockholders
-49.66M	-112.96M	-42.81M	-37.56M	-128.69M	-103.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
256.13M	82.65M	43.89M	32.25M	217.43M	262.39M
	Total Assets
310.96M	306.12M	61.77M	35.15M	263.74M	310.57M
	Total Debt
23.98M	1.32M	44.73M	4.97M	15.44M	0.00
	Net Debt
-224.14M	-37.95M	838.00K	-27.27M	-201.99M	-53.77M
	Total Liabilities
44.70M	233.13M	192.49M	124.36M	67.74M	52.06M
	Stockholders Equity
266.25M	72.99M	-130.71M	-89.21M	196.00M	258.51M
Cash Flow		Free Cash Flow
-77.94M	-96.46M	-13.44M	-33.14M	-98.06M	-113.19M
	Operating Cash Flow
-77.86M	-96.23M	-10.96M	-32.98M	-94.33M	-91.36M
	Investing Cash Flow
51.64M	101.33M	-2.47M	-157.00K	204.90M	-51.80M
	Financing Cash Flow
94.83M	184.00K	30.07M	20.11M	53.09M	158.21M

Q32 Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QTTB, the sentiment is Negative. The current price of 1.71 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.59, and below the 200-day MA of 23.79, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 28.59 is Positive, neither overbought nor oversold. The STOCH value of 12.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QTTB.

Q32 Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRTX	64 Neutral	$129.05B	―	-3.15%	―	11.64%	-114.72%
ALNY	59 Neutral	$34.92B	―	-414.62%	―	22.97%	38.54%
Sector *	49 Neutral	$6.85B	0.81	-52.75%	2.49%	20.08%	1.28%
CRSP	46 Neutral	$3.26B	―	-19.20%	―	-89.95%	-123.71%
QTTB	41 Neutral	$20.86M	―	-121.36%	―	-100.00%	91.45%
EDIT	39 Underperform	$107.87M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$835.39M	―	-54.00%	―	59.55%	3.09%

Q32 Bio Corporate Events

Q32 Bio Restructures to Focus on Bempikibart Development

On February 10, 2025, Q32 Bio announced a strategic restructuring plan to focus on advancing its bempikibart clinical development program for alopecia areata. This involves discontinuing the Phase 2 renal basket trial of ADX-097 and evaluating strategic options for its tissue-targeted complement inhibitor platform. The restructuring includes a reduction in workforce and is expected to extend cash runway to the second half of 2026, while incurring approximately $1.1 million in severance charges. The company plans to initiate an open-label extension and SIGNAL-AA Part B dosing in 2025, with topline data expected in the first half of 2026. These changes aim to maximize the potential of bempikibart in transforming treatment for alopecia areata and potentially other autoimmune conditions.

Q32 Bio Advances Clinical Trials for Growth Opportunities

Q32 Bio announced updates to its corporate presentation, highlighting the progress in clinical trials for its lead products. The company is advancing its bempikibart program, demonstrating potential in treating alopecia areata with durable effects and favorable safety, and plans to initiate a Phase 2a Part B trial. Additionally, ADX-097 is being tested in a Phase 2 renal basket trial, with multiple data readouts expected in 2025, positioning Q32 for significant growth opportunities.