Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $487.32M
• Dividend Yield: N/A
• Average Volume (3M): 232.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.76
• Revenue Growth: -13.37%
• EPS Growth: -1025.90%
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 87
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 44,585,136
• 10 Day Avg. Volume: 261,263
• 30 Day Avg. Volume: 232,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 227.05
• Enterprise Value/Gross Profit: 227.05
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $22.00
• Price Target Upside: 98.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $12.00 ▲(8.21% Upside)

Septerna, Inc. shows potential with strong revenue growth and strategic partnerships, but significant operational inefficiencies and financial risks weigh heavily on its overall score. The technical indicators suggest a bearish trend, and the negative valuation metrics further dampen the stock's attractiveness.

Positive Factors

Clinical Trial Progress

The initiation of dosing for SEP-631 is considered a meaningful value inflection point for Septerna.

Financial Position

Septerna has approximately $421M in cash, providing sufficient financing into early 2028.

Strategic Partnerships

The up to $2.2B collaboration with Novo provides important validation of SEPN's GPCR Native Complex platform in a very synergistic way with a global leader in obesity.

Negative Factors

Clinical Program Setback

SEP-786 was discontinued due to unexpected, off-target toxicity in 2 MAD patients, but the adverse effect was reversible and did not lead to liver injury.

Uncertainty in Development

SEP-631 (MRGPRX2 NAM) is now initiating a Ph1 healthy volunteer study, but the outcome remains uncertain as it assesses safety, tolerability, pharmacokinetics, and pharmacodynamics.

Septerna, Inc. Business Overview & Revenue Model

Company Description

Septerna, Inc. (SEPN) is a biotechnology company focused on discovering and developing small-molecule medicines targeting G protein-coupled receptors (GPCRs). These receptors play a crucial role in human physiology and are implicated in a wide range of diseases. Septerna leverages its proprietary technology platform to identify and advance novel drug candidates, with the goal of addressing unmet medical needs across various therapeutic areas.

How the Company Makes Money

Septerna, Inc. makes money primarily through the development and commercialization of its proprietary drug candidates targeting GPCRs. The company's revenue streams include milestone payments and royalties from licensing agreements with pharmaceutical partners, as well as potential revenue from the eventual approval and sale of its own therapeutic products. Strategic partnerships and collaborations with other biotech and pharmaceutical companies are significant factors contributing to its earnings, enabling Septerna to leverage external expertise and resources to accelerate drug development and commercialization.

Septerna, Inc. Financial Statement Overview

Summary

Septerna, Inc. shows robust revenue growth, but faces significant operational challenges and losses. The strong equity base and low leverage are positives, but negative cash flows indicate financial risk.

Income Statement

Septerna, Inc. showed a significant revenue increase from $151,000 in 2023 to $1,075,000 in 2024, indicating strong revenue growth. However, net income turned negative in 2024 with a substantial loss of $71.8 million compared to a profit in 2023, demonstrating volatility. The EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company has a strong equity base with stockholders' equity at $420 million in 2024, and a high equity ratio of approximately 92%. However, the company carries debt, with a debt-to-equity ratio of 0.06, which is relatively low, indicating low financial leverage. The improvement in equity is a positive sign, but past equity deficits highlight potential financial instability.

Cash Flow

Free cash flow remains negative at $69.57 million in 2024, showing no improvement from 2023. Operating cash flow is also negative, suggesting inefficiency in generating cash from operations. The reliance on financing activities to fund operations could be a risk if external funding becomes limited.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	726.00K	1.07M	151.00K	0.00
Gross Profit	726.00K	1.07M	151.00K	0.00
EBITDA	-100.60M	-79.42M	-44.70M	-27.39M
Net Income	-87.50M	-71.80M	4.18M	-27.68M
Balance Sheet
Total Assets	415.23M	456.55M	130.87M	36.12M
Cash, Cash Equivalents and Short-Term Investments	326.56M	350.92M	88.48M	30.61M
Total Debt	24.57M	25.48M	12.57M	710.00K
Total Liabilities	37.67M	36.51M	169.24M	80.32M
Stockholders Equity	377.56M	420.05M	-38.37M	-44.20M
Cash Flow
Free Cash Flow	-83.03M	-69.57M	-41.60M	-24.59M
Operating Cash Flow	-81.40M	-67.47M	-38.72M	-23.30M
Investing Cash Flow	-163.69M	-160.60M	22.12M	-1.29M
Financing Cash Flow	303.23M	377.78M	74.52M	30.05M

Septerna, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEPN, the sentiment is Positive. The current price of 11.09 is below the 20-day moving average (MA) of 11.97, below the 50-day MA of 11.59, and below the 200-day MA of 13.10, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 42.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEPN.

Septerna, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	£509.23M	27.17	-2.10%	2.79%	3.87%	-14.52%
CMPX	60 Neutral	$466.68M	―	-51.84%	―	-100.00%	-25.75%
SEPN	54 Neutral	$487.32M	―	-32.78%	―	-13.37%	-1025.90%
OABI	53 Neutral	$247.86M	―	-22.84%	―	6.05%	2.24%
GLUE	52 Neutral	$271.74M	12.91	9.81%	―	2990.57%	―
VNDA	48 Neutral	$267.67M	―	-13.01%	―	11.78%	-504.50%
AVIR	47 Neutral	$276.96M	―	-32.38%	―	―	23.24%

Septerna, Inc. Corporate Events

Septerna Begins Phase 1 Trial for SEP-631

On August 21, 2025, Septerna, Inc. announced the dosing of the first participants in a Phase 1 clinical trial for SEP-631, an oral small molecule targeting MRGPRX2 for treating mast cell-driven diseases like chronic spontaneous urticaria. The trial aims to evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamics of SEP-631 in healthy volunteers, potentially offering a new oral treatment option for patients with significant unmet medical needs.

Septerna Appoints Liz Bhatt as New President

On July 30, 2025, Septerna, Inc. announced the appointment of Liz Bhatt as the company’s new President, effective August 1, 2025. Bhatt, who has been the Chief Operating Officer since June 2022, will continue in this role while assuming the presidency from Jeffrey Finer, who remains the CEO. This leadership change signifies a strategic move for Septerna, as Bhatt’s dual role is expected to enhance operational efficiency and leadership continuity.

Septerna Announces Collaboration with Novo Nordisk

On July 1, 2025, Septerna, Inc. announced the effectiveness of its Collaboration and License Agreement with Novo Nordisk A/S, following the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. This agreement, initially announced on May 13, 2025, marks a significant step in Septerna’s strategic partnerships, potentially enhancing its market position and operational capabilities.

Septerna, Inc. Holds Virtual Annual Stockholders Meeting

On June 17, 2025, Septerna, Inc. conducted its Annual Meeting of Stockholders virtually, with a quorum established by 34,278,489 shares present. During the meeting, stockholders elected Abraham Bassan and Alan Ezekowitz as Class I directors for three-year terms and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.