Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $311.10M
• Dividend Yield: N/A
• Average Volume (3M): 250.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 62
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 44,442,497
• 10 Day Avg. Volume: 172,157
• 30 Day Avg. Volume: 250,524
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 387.10
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.00
• Price Target Upside: 194.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Septerna, Inc. faces significant challenges including operational inefficiencies, cash flow constraints, and weak technical indicators. The discontinuation of a key program adds pressure despite strategic realignment efforts. Lack of valuation metrics further complicates assessment. Improvement in operational efficiency and successful strategic shifts are crucial for enhancing stock performance.

Positive Factors

Financial Stability

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.

Technological Innovation

SEPN is applying its Native Complex platform to build a pipeline of oral small molecule GPCR drugs, indicating significant potential for stock appreciation.

Negative Factors

Lack of Immediate Catalysts

With the lack of catalysts in the next 12-18 months, analysts move to the sidelines.

Lead Program Concerns

The stock may trade down sharply as SEP-786 was SEPN's lead program and nearest data catalyst.

Program Discontinuation

SEPN plans to discontinue their SEP-786 program due to unanticipated increases in unconjugated serum bilirubin.

Septerna, Inc. Business Overview & Revenue Model

Company Description

Septerna, 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 Money

Septerna, Inc. makes money primarily through the discovery and development of novel drug candidates targeting GPCRs. The company generates revenue by entering into partnerships and collaborations with pharmaceutical and biotechnology companies. These partnerships may involve upfront payments, research funding, milestone payments, and royalties on sales if the drug candidates are successfully developed and commercialized. Additionally, Septerna may also out-license its technology or drug candidates to other companies, providing another stream of potential revenue.

Septerna, Inc. Financial Statement Overview

Summary

Septerna, Inc. shows strong revenue growth but faces operational inefficiencies and significant losses. The balance sheet is robust with high equity and low leverage, yet cash flow issues pose risks. Overall, financial performance is mixed, with potential for improvement in operational efficiency and cash flow sustainability.

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
Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
1.07M	151.00K	0.00
	Gross Profit
1.07M	151.00K	0.00
	EBIT
-80.82M	2.08M	-27.97M
	EBITDA
-80.82M	-44.70M	-27.39M
	Net Income Common Stockholders
-71.80M	4.18M	-27.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
350.92M	88.48M	30.61M
	Total Assets
456.55M	130.87M	36.12M
	Total Debt
25.48M	12.57M	710.00K
	Net Debt
-212.72M	-75.92M	-29.90M
	Total Liabilities
36.51M	169.24M	80.32M
	Stockholders Equity
420.05M	-38.37M	-44.20M
Cash Flow		Free Cash Flow
-69.57M	-41.60M	-24.59M
	Operating Cash Flow
-67.47M	-38.72M	-23.30M
	Investing Cash Flow
-160.60M	22.12M	-1.29M
	Financing Cash Flow
377.78M	74.52M	30.05M

Septerna, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$262.74M	―	-36.07%	―	―	-7.93%
Sector *	59 Neutral	$10.72B	10.37	-6.60%	3.02%	7.37%	-11.29%
GLUE	52 Neutral	$311.24M	―	-36.15%	―	―	61.09%
OABI	50 Neutral	$219.84M	―	-20.60%	―	-22.75%	-19.65%
VNDA	48 Neutral	$247.84M	―	-3.49%	―	3.18%	-835.29%
AVIR	47 Neutral	$247.17M	―	-33.88%	―	―	-22.66%
SEPN	44 Neutral	$311.10M	―	3.77%	―	―	―

Septerna, Inc. Corporate Events

Septerna, Inc. Shifts Focus to Next-Gen PTH1R Agonist

Septerna, Inc. announced its participation in the TD Cowen 45th Annual Health Care Conference in March 2025, highlighting its strategic focus on advancing its oral small molecule GPCR-targeted programs. The company disclosed the discontinuation of its SEP-786 development due to unexpected adverse events and plans to pivot towards a next-generation oral PTH1R agonist, emphasizing its commitment to addressing unmet medical needs in hypoparathyroidism and other conditions.