Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $618.47M
• Dividend Yield: N/A
• Average Volume (3M): 360.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 91
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 44,558,340
• 10 Day Avg. Volume: 221,245
• 30 Day Avg. Volume: 360,761
• PEG Ratio: -0.86
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.11
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 184.24
• Enterprise Value/Gross Profit: 427.06
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $23.00
• Price Target Upside: 65.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $14.50 ▲(4.47%Upside)

Septerna, Inc. has a strong potential for growth due to its strategic partnership with Novo Nordisk, but faces financial and operational challenges. While technical indicators show positive momentum, the stock is currently overbought. The negative P/E ratio and lack of a dividend yield are concerns from a valuation standpoint. The company's ability to improve operational efficiency and manage cash flow will be crucial for future performance.

Positive Factors

Financial Stability

Novo Nordisk will cover all costs until a certain development stage, reducing financial risk for Septerna.

Pipeline Progress

SEP-631 (MRGPRX2 NAM) remains on track to enter the clinic, indicating progress in the company's pipeline.

Strategic Partnership

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

Catalyst Deficiency

Few stock catalysts are anticipated with the discontinuation of SEP-786's Ph1 update and an undecided future PTH candidate.

Market Reaction

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

Pipeline 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.

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 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

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	607.00K	1.07M	151.00K	0.00
Gross Profit	607.00K	1.07M	151.00K	0.00
EBITDA	-72.03M	-79.42M	-44.70M	-27.39M
Net Income	-62.67M	-71.80M	4.18M	-27.68M
Balance Sheet
Total Assets	130.87M	456.55M	130.87M	36.12M
Cash, Cash Equivalents and Short-Term Investments	88.48M	350.92M	88.48M	30.61M
Total Debt	12.57M	25.48M	12.57M	710.00K
Total Liabilities	169.24M	36.51M	169.24M	80.32M
Stockholders Equity	-38.37M	420.05M	-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	-160.60M	22.12M	-1.29M
Financing Cash Flow	302.89M	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
Sector *	63 Neutral	3.50B	13.38	-31.13%	160.89%	14.99%	32.04%
CMPX	60 Neutral	$439.74M	―	-41.31%	―	―	-7.93%
OABI	58 Neutral	$256.90M	―	-21.32%	―	27.07%	6.74%
SEPN	58 Neutral	$618.47M	―	3.77%	―	―	―
GLUE	52 Neutral	$348.76M	84.38	2.88%	―	―	61.09%
VNDA	48 Neutral	$279.35M	―	-8.38%	―	3.18%	-835.29%
AVIR	47 Neutral	$333.76M	―	-30.47%	―	―	-22.66%

Septerna, Inc. Corporate Events

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.

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.

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.

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.

Septerna Enters Major Collaboration with Novo Nordisk

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.