Spruce Biosciences (SPRB) AI Stock Analysis

• Market Cap: $12.19M
• Dividend Yield: N/A
• Average Volume (3M): 256.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: -1.40%
• EPS Growth: 35.83%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -0.96
• Shares Outstanding: 41,302,600
• 10 Day Avg. Volume: 163,179
• 30 Day Avg. Volume: 256,159
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.96
• Price to Cash Flow (P/CF): -0.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.25
• Price Target Upside: 331.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Spruce Biosciences faces severe financial challenges, with negative profitability and cash flow issues being the most significant concerns. Technical indicators suggest bearish market sentiment, and valuation metrics are unfavorable due to ongoing losses. The lack of earnings guidance or significant corporate events further contributes to the low overall score.

Positive Factors

Financial Stability

Spruce Biosciences ended 3Q24 with $60.1M in cash and cash equivalents, which is expected to be sufficient to fund operations at least into 2026.

Market Potential

The CAH opportunity is considered large with approximately 20,000-30,000 patients in the U.S. and around 250 new patients identified via newborn screening annually.

Partnership Opportunities

SPRB entered a low-risk partnership with HMNC Brain Health to run a Phase 2 proof-of-concept trial of tildacerfont in major depressive disorder.

Negative Factors

Clinical Trial Results

Tildacerfont endocrine clinical readouts disappoint—now in holding pattern.

Regulatory Challenges

Tildacerfont faces an uncertain future at best, particularly in the wake of the recent U.S. regulatory approval of crinecerfont.

Stock Performance

Shares of Spruce Biosciences were trading at approximately 37% of end-quarter cash before the news, and were down around 22% in the aftermarket.

Spruce Biosciences Business Overview & Revenue Model

Company Description

Spruce Biosciences (SPRB) is a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for rare endocrine disorders. The company's lead product candidate, tildacerfont, is aimed at treating congenital adrenal hyperplasia (CAH), a condition that affects the adrenal glands. Spruce Biosciences operates within the healthcare and biotechnology sectors, with a commitment to addressing unmet medical needs for patients with endocrine disorders.

How the Company Makes Money

Spruce Biosciences generates revenue through the development and potential commercialization of its product candidates, primarily tildacerfont. As a biopharmaceutical company in the clinical stage, its main revenue streams are expected to come from successful clinical trials, regulatory approvals, and eventual product sales. Additionally, partnerships, collaborations, and licensing agreements with other pharmaceutical companies or research institutions can provide significant funding resources. These partnerships might involve milestone payments, royalties, or upfront payments that contribute to the company's earnings. However, as of now, Spruce Biosciences may not yet have significant revenue from product sales, as it is still in the late stages of clinical development.

Spruce Biosciences Financial Statement Overview

Summary

Spruce Biosciences is under substantial financial pressure, marked by negative profitability, declining revenue, and ongoing cash flow difficulties. Despite reasonable leverage levels and significant cash reserves, the negative return on equity and reliance on external financing underscore the need for strategic improvements.

Income Statement

Spruce Biosciences is experiencing significant challenges in profitability, with consistently negative net income and EBIT margins over the periods analyzed. Revenue growth is negative in the TTM (Trailing-Twelve-Months) as well, indicating a downturn from previous periods. The gross profit margin is also negative, reflecting the high cost of operations compared to revenue. These factors suggest substantial financial pressure on the company.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, suggesting reasonable leverage levels. However, the equity ratio has been declining over time. The return on equity is negative, which is a concern as it indicates the company is not generating profits from shareholders' equity. The significant cash reserves provide some liquidity cushion, but the negative stockholders' equity in prior years could indicate historical financial instability.

Cash Flow

Spruce Biosciences' cash flow indicates substantial negative operating cash flow, which is concerning as it suggests the company is not generating sufficient cash to cover its operating expenses. The free cash flow has also been consistently negative, reflecting ongoing challenges in achieving cash flow breakeven. Financing activities have been a source of cash, but reliance on external financing can pose risks if not managed carefully.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
7.10M	10.09M	0.00	0.00	0.00	0.00
	Gross Profit
-1.02M	-39.34M	-429.00K	-381.00K	-102.00K	-12.00K
	EBIT
-43.24M	-51.99M	-47.28M	-42.07M	-29.42M	-13.11M
	EBITDA
-39.02M	-47.37M	-45.33M	-41.57M	-29.11M	-13.10M
	Net Income Common Stockholders
-39.43M	-47.92M	-45.08M	-42.69M	-30.03M	-13.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.11M	96.34M	79.08M	88.97M	157.15M	3.92M
	Total Assets
0.00	103.95M	85.65M	126.49M	162.88M	4.69M
	Total Debt
0.00	4.61M	6.18M	6.17M	6.13M	4.45M
	Net Debt
4.11M	-91.73M	-18.31M	-36.58M	-151.02M	521.00K
	Total Liabilities
0.00	27.44M	17.16M	15.12M	13.46M	35.33M
	Stockholders Equity
2.07M	76.51M	68.49M	111.37M	149.43M	-30.64M
Cash Flow		Free Cash Flow
-46.50M	-33.28M	-41.69M	-35.97M	-27.59M	-12.62M
	Operating Cash Flow
-46.50M	-33.27M	-41.68M	-35.88M	-27.52M	-12.62M
	Investing Cash Flow
9.30M	55.78M	23.69M	-79.17M	-74.00K	-4.00K
	Financing Cash Flow
-1.55M	49.14M	-241.00K	643.00K	181.03M	12.43M

Spruce Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRB, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.37, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 23.85 is Positive, neither overbought nor oversold. The STOCH value of 27.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRB.

Spruce Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	68 Neutral	$11.28B	34.38	14.16%	―	24.81%	33.67%
VYGR	58 Neutral	$201.51M	5.05	-24.25%	―	-68.00%	-134.79%
AXSM	51 Neutral	$5.78B	―	-231.63%	―	42.53%	-15.29%
Sector *	48 Neutral	$6.84B	1.02	-53.11%	2.50%	16.84%	0.92%
PRTA	47 Neutral	$707.29M	―	-23.34%	―	47.92%	17.84%
KURA	45 Neutral	$569.32M	―	-42.91%	―	―	2.90%
SPRB	38 Underperform	$12.19M	―	-57.55%	―	-1.40%	35.83%

Spruce Biosciences Corporate Events

Spruce Biosciences Appoints Interim Chief Medical Officer

Spruce Biosciences announced the departure of its Chief Medical Officer, Ralph William Charlton III, effective December 31, 2024, with Dr. Charlton receiving a severance package. Kirk Ways, a seasoned pharmaceutical executive, will serve as interim Chief Medical Officer, bringing extensive experience in diabetes and cancer research and development to the role.