Repare Therapeutics (RPTX) AI Stock Analysis

• Market Cap: $44.64M
• Dividend Yield: N/A
• Average Volume (3M): 195.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: 4.58%
• EPS Growth: 10.59%
• Country: US
• Employees: 129
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -2.00
• Shares Outstanding: 42,510,708
• 10 Day Avg. Volume: 224,807
• 30 Day Avg. Volume: 195,034
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.89
• Price to Cash Flow (P/CF): -0.40
• 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: $4.67
• Price Target Upside: 344.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Repare Therapeutics is facing significant financial challenges with ongoing losses and revenue volatility. While the balance sheet remains relatively stable, the technical analysis suggests bearish momentum. The valuation is unattractive due to negative earnings, but corporate restructuring and positive trial results could provide long-term potential. Overall, the stock presents high risk with uncertain prospects.

Positive Factors

Analyst Recommendation

Analyst's recommendation remains at Buy despite the net losses reported.

Financial Stability

RPTX provided updated guidance on their cash runway, now extended to late-2027, which shows improved financial stability.

Research and Development

RP-3467 shows potential for significant tumor volume reductions, including clearance, in combination with PARP inhibitors.

Negative Factors

Funding Risks

Failure to drive support for RP-3467/RP-1664 could heighten funding risk for the company.

Leadership Instability

The departure of Chief Medical Officer Maria Koehler suggests potential instability in the company's leadership.

Operational Efficiency

The board's formal approval of a 75% workforce reduction indicates significant organizational changes.

Repare Therapeutics Business Overview & Revenue Model

Company Description

Repare Therapeutics (RPTX) is a precision oncology company focused on developing novel therapeutics by targeting specific vulnerabilities in cancer cells. The company leverages its proprietary SNIPRx platform to design and develop innovative treatments aimed at synthetic lethality, a process that targets cancer cells by exploiting genetic interactions. Repare's pipeline includes several candidates in clinical and preclinical stages, aimed at addressing unmet needs in cancer treatment.

How the Company Makes Money

Repare Therapeutics generates revenue primarily through strategic partnerships and collaborations with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments, and potential royalties based on the successful development and commercialization of therapeutic candidates. Additionally, the company may generate revenue from licensing agreements, where it licenses its proprietary technology and intellectual property to other companies in exchange for fees and royalties. As Repare's drug candidates progress through clinical trials and potentially reach commercialization, product sales will become a direct source of revenue.

Repare Therapeutics Financial Statement Overview

Summary

Repare Therapeutics is grappling with significant financial challenges, marked by ongoing losses and revenue volatility. Despite these issues, the balance sheet shows relative stability with a strong cash position and low leverage, offering some buffer to continue operations.

Income Statement

Repare Therapeutics has shown significant revenue volatility over the years, with revenue dropping to zero in the most recent period from $51.13 million the previous year and $131.83 million two years prior. The company has consistently incurred operating losses, and negative net income, indicating ongoing profitability challenges. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies. However, the company showed a brief revenue surge in 2022, which might indicate potential for recovery.

Balance Sheet

The company maintains a strong equity base relative to its liabilities, reflected in a low Debt-to-Equity ratio, which suggests stability. Despite consistent net losses, Repare's cash position remains robust, indicating prudent cash management. However, the Return on Equity is negative due to sustained net losses, which impacts overall shareholder returns negatively. The equity ratio has shown some decline but remains relatively healthy.

Cash Flow

Repare Therapeutics has faced challenges with negative free cash flow, although the cash flow from investing activities has been positive, largely due to asset management. The operating cash flow remains negative, indicating that the company is not generating enough cash from core operations to cover expenses. However, the company has managed to sustain cash reserves, which provides liquidity to continue operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.48M	51.13M	131.83M	7.60M	135.00K
	Gross Profit
53.48M	-80.07M	127.65M	4.26M	-1.65M
	EBIT
-93.52M	-116.22M	-19.80M	-108.66M	-54.30M
	EBITDA
-90.22M	-114.27M	-17.82M	-107.19M	-53.41M
	Net Income Common Stockholders
-84.69M	-93.80M	-29.05M	-106.91M	-53.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.79M	223.63M	343.94M	341.87M	333.71M
	Total Assets
176.51M	253.90M	364.07M	368.71M	357.09M
	Total Debt
1.93M	3.41M	5.43M	7.31M	4.00M
	Net Debt
-82.78M	-107.86M	-154.09M	-327.11M	-322.18M
	Total Liabilities
25.38M	41.82M	84.56M	80.29M	70.26M
	Stockholders Equity
151.13M	212.08M	279.52M	288.42M	286.83M
Cash Flow		Free Cash Flow
-76.44M	-129.10M	-280.00K	-87.49M	-8.32M
	Operating Cash Flow
-76.44M	-127.16M	322.00K	-85.80M	-6.08M
	Investing Cash Flow
49.47M	78.04M	-175.78M	-1.68M	-9.76M
	Financing Cash Flow
542.00K	842.00K	880.00K	95.56M	247.84M

Repare Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPTX, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.19, and below the 200-day MA of 2.60, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 32.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPTX.

Repare Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	80 Outperform	$10.27B	20.71	23.13%	―	18.49%	176.71%
ARGX	68 Neutral	$36.51B	42.41	17.33%	―	78.01%	―
BPMC	52 Neutral	$5.67B	―	-31.26%	―	104.04%	87.80%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	17.48%	1.17%
RPTX	46 Neutral	$44.64M	―	-46.63%	―	4.58%	10.59%
KPTI	40 Underperform	$35.01M	―	41.08%	―	-0.55%	49.85%
NERV	26 Underperform	$12.66M	9.52	>-0.01%	―	―	―

Repare Therapeutics Corporate Events

Repare Therapeutics Announces Major Reorganization in 2025

In January 2025, Repare Therapeutics announced a significant reorganization, including a 75% workforce reduction, to prioritize its Phase 1 clinical programs. This reorganization, approved on February 23, 2025, is expected to incur one-time costs of approximately $7.3 million for severance and $1.4 million for retention, with anticipated annual savings of $21 million. The departure of Chief Medical Officer Dr. Maria Koehler, effective March 31, 2025, is part of this restructuring, with severance benefits outlined. Retention bonuses are also being provided to key executives.

Repare Therapeutics Shifts Focus to Phase 1 Programs

Repare Therapeutics announced a strategic shift to prioritize the advancement of its Phase 1 clinical programs, RP-1664 and RP-3467, along with exploring partnerships for other assets like Lunre+Camo. This re-alignment, coupled with cost and headcount reductions, is projected to extend the company’s cash runway to mid-2027, potentially enhancing its market position and creating value. Repare aims to achieve significant milestones in 2025, with initial clinical readouts for its prioritized programs and plans contingent on securing strategic partners for further developments.