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Septerna, Inc. (SEPN)
NASDAQ:SEPN
US Market

Septerna, Inc. (SEPN) AI Stock Analysis

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Septerna, Inc.

(NASDAQ:SEPN)

Rating:61Neutral
Price Target:
$12.00
▲(5.54%Upside)
Septerna's strong technical momentum and strategic partnership with Novo Nordisk are major positives, enhancing its industry position and potential for future growth. However, financial instability, significant losses, and unattractive valuation present substantial risks. Investors should weigh these factors carefully.
Positive Factors
Collaboration with Novo Nordisk
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.
Financial Outlook
Septerna has approximately $421M in cash, providing sufficient financing into early 2028.
Pipeline Progress
SEP-631 (MRGPRX2 NAM) remains on track to enter the clinic, indicating progress in the company's pipeline.
Negative Factors
Development Uncertainty
In vivo tox findings for Incyte's MRGPRX2 antagonist EP262 led Incyte to pause Ph2 CSU trial, creating uncertainty for the SEP-631 development path.
Lack of Catalysts
The company is essentially a preclinical stage biotech with the lack of catalysts in the next 12-18 months.
Program Discontinuation
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.

Septerna, Inc. (SEPN) vs. SPDR S&P 500 ETF (SPY)

Septerna, Inc. Business Overview & Revenue Model

Company DescriptionSepterna, Inc., a clinical-stage biotechnology company, discovers and develops G protein-coupled receptor (GPCR) oral small molecule products candidates for the treatment of endocrinology, immunology and inflammation, and metabolic diseases. The company develops SEP-786, an oral small molecule PTH1R agonist for hypoparathyroidism; SEP-631, an oral small molecule MRGPRX2 NAM for chronic spontaneous urticaria and other mast cell diseases; TSHR Program, an oral small molecule TSHR NAM for Graves' disease and thyroid eye disease. It also develops oral small molecule single- and multi-incretin receptor agonists for metabolic disorders including obesity and type 2 diabetes. Septerna, Inc. was formerly known as GPCR NewCo, Inc. and changed its name to Septerna Inc. in June 2021. The company was incorporated in 2019 and is headquartered in South San Francisco, California.
How the Company Makes MoneySepterna, 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. is experiencing rapid revenue growth but is challenged by operational inefficiencies and significant losses. The balance sheet is strengthened by high equity levels and low leverage, but cash flow constraints pose a financial risk. Continued focus on improving operational efficiency and sustainable cash flow will be crucial for long-term stability.
Income Statement
45
Neutral
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
65
Positive
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue607.00K1.07M151.00K0.00
Gross Profit607.00K1.07M151.00K0.00
EBITDA-72.03M-79.42M-44.70M-27.39M
Net Income-62.67M-71.80M4.18M-27.68M
Balance Sheet
Total Assets130.87M456.55M130.87M36.12M
Cash, Cash Equivalents and Short-Term Investments88.48M350.92M88.48M30.61M
Total Debt12.57M25.48M12.57M710.00K
Total Liabilities169.24M36.51M169.24M80.32M
Stockholders Equity-38.37M420.05M-38.37M-44.20M
Cash Flow
Free Cash Flow-62.69M-69.57M-41.60M-24.59M
Operating Cash Flow-61.12M-67.47M-38.72M-23.30M
Investing Cash Flow-162.91M-160.60M22.12M-1.29M
Financing Cash Flow302.89M377.78M74.52M30.05M

Septerna, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$506.63M3.77%
60
Neutral
$384.43M-41.31%-7.93%
56
Neutral
HK$13.54B4.87-5.76%5.64%8.06%-42.52%
55
Neutral
$236.11M-21.32%27.07%6.74%
52
Neutral
$299.55M72.472.88%61.09%
48
Neutral
$292.90M-8.38%3.18%-835.29%
47
Neutral
$320.07M-30.47%-22.66%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEPN
Septerna, Inc.
11.37
-9.38
-45.20%
VNDA
Vanda
4.97
-0.30
-5.69%
AVIR
Atea Pharmaceuticals
3.74
0.46
14.02%
CMPX
Compass Therapeutics
2.78
1.92
223.26%
GLUE
Monte Rosa Therapeutics
4.87
0.98
25.19%
OABI
OmniAb
1.93
-1.99
-50.77%

Septerna, Inc. Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Septerna Announces Collaboration with Novo Nordisk
Positive
Jul 2, 2025

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.

The most recent analyst rating on (SEPN) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Septerna, Inc. Holds Virtual Annual Stockholders Meeting
Neutral
Jun 18, 2025

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.

The most recent analyst rating on (SEPN) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.

Business Operations and Strategy
Septerna Enters Major Collaboration with Novo Nordisk
Positive
May 14, 2025

On May 13, 2025, Septerna, Inc. and Novo Nordisk entered into a global collaboration and license agreement to develop oral small molecule therapies for metabolic-related diseases. This partnership will leverage Septerna’s Native Complex Platform™ to target multiple GPCRs, including GLP-1, GIP, and glucagon receptors. The agreement could potentially bring Septerna over $2.2 billion in payments, with Novo Nordisk covering all research and development expenses. This collaboration is expected to enhance Septerna’s industry positioning by providing significant resources to advance its GPCR-targeted programs.

The most recent analyst rating on (SEPN) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025