Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $463.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.85
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 44,558,340
• 10 Day Avg. Volume: 579,134
• 30 Day Avg. Volume: 1,878,105
• 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: 0.56
• Enterprise Value/Revenue: 184.24
• Enterprise Value/Gross Profit: 427.06
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $21.50
• Price Target Upside: 111.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $10.00 ▼(-1.67%Downside)

Septerna, Inc. faces a challenging financial situation with significant operational inefficiencies and cash flow issues. While the collaboration with Novo Nordisk provides a strategic advantage, the lack of valuation metrics and mixed technical indicators contribute to an uncertain outlook. The company's strong equity base and low leverage are positive, but improvements in operational efficiency are crucial for future stability.

Positive Factors

Collaboration

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 Performance

Septerna will receive a significant upfront payment and potential milestone payments, indicating confidence in its development programs.

Pipeline Progress

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

Negative Factors

Development Uncertainty

A new development candidate for the PTH program has not been selected, leading to a removal of value from the program.

Lack of Catalysts

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

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. 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. 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
	EBIT
-73.18M	-80.82M	2.08M	-27.97M
	EBITDA
-72.03M	-79.42M	-44.70M	-27.39M
	Net Income Common Stockholders
-62.67M	-71.80M	4.18M	-27.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
88.48M	350.92M	88.48M	30.61M
	Total Assets
130.87M	456.55M	130.87M	36.12M
	Total Debt
12.57M	25.48M	12.57M	710.00K
	Net Debt
-75.92M	-212.72M	-75.92M	-29.90M
	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 *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CMPX	60 Neutral	$333.26M	―	-41.31%	―	―	-7.93%
GLUE	52 Neutral	$302.63M	73.07	2.88%	―	―	61.09%
OABI	51 Neutral	$209.19M	―	-21.32%	―	27.07%	6.74%
SEPN	50 Neutral	$463.85M	―	3.77%	―	―	―
VNDA	48 Neutral	$265.79M	―	-8.38%	―	3.18%	-835.29%
AVIR	47 Neutral	$274.71M	―	-30.47%	―	―	-22.66%

Septerna, Inc. Corporate Events

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.