Spruce Biosciences (SPRB) AI Stock Analysis

• Market Cap: $2.66M
• Dividend Yield: N/A
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -51.32%
• EPS Growth: -1.76%
• Country: US
• Employees: 20
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 42,231,285
• 10 Day Avg. Volume: 187,518
• 30 Day Avg. Volume: 2,645,427
• PEG Ratio: -0.02
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.12
• 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: $0.75
• Price Target Upside: 1150.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 35 Underperform
• Price Target: ―

Spruce Biosciences faces substantial financial challenges with declining revenues and persistent losses. Bearish technical indicators and unfavorable valuation metrics further weigh on the stock. The strategic acquisition of TA-ERT offers potential growth, but the financial instability remains a critical concern.

Positive Factors

Financial Resources

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.

Regulatory Approval

The FDA confirmed that HS-NRE is deemed to be a surrogate biomarker reasonably likely to predict clinical benefit and could serve as a basis for Accelerated Approval.

Strategic Development

Spruce Biosciences licensed tralesinidase alfa, an enzyme replacement therapy, which has 1st to market potential.

Negative Factors

Financial Performance

SPRB reported a net loss of $14.0M for the quarter.

Liquidity Concerns

SPRB's cash balance is now less than $30M and the company is facing significant liquidity pressure.

Operational Risks

Concerns exist regarding Spruce Biosciences' ability to fund these programs without further shareholder dilution.

Spruce Biosciences Business Overview & Revenue Model

Company Description

Spruce Biosciences, Inc., a biopharmaceutical company, focuses on developing and commercializing novel therapies for rare endocrine disorders. The company engages in developing tildacerfont, a non-steroidal therapy to enhance disease control and reduce steroid burden for adult patients suffering from congenital adrenal hyperplasia (CAH), which is in Phase 2b clinical trial; and to evaluate glucocorticoid reduction and clinical consequences in adult patients with classic CAH that is Phase 2b clinical trial. It is also developing tildacerfont for the treatment of pediatric classic congenital adrenal hyperplasia in children that is in Phase 2 clinical trial; and for females with polycystic ovary syndrome, which is in Phase 2 clinical trial. The company has a license agreement with Eli Lilly and Company to research, develop, and commercialize compounds for various pharmaceutical uses. Spruce Biosciences, Inc. was incorporated in 2014 and is headquartered in Daly City, California.

How the Company Makes Money

Spruce Biosciences primarily makes money through the development and commercialization of its pharmaceutical products. The company's revenue model is centered around advancing its lead product candidate, tildacerfont, through clinical trials and ultimately obtaining regulatory approval and commercializing the drug. Revenue streams may include sales of the approved drug, milestone payments, and royalties from partnerships or licensing agreements with larger pharmaceutical companies. Significant partnerships with research institutions or other biotech firms can also contribute to its revenue through collaborative research and potential co-development agreements.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.10M	4.91M	10.09M	0.00	0.00	0.00
	Gross Profit
-1.02M	4.91M	-39.34M	-429.00K	-381.00K	-102.00K
	EBIT
-43.24M	-56.15M	-51.99M	-47.28M	-42.07M	-29.42M
	EBITDA
-39.02M	-56.15M	-47.37M	-45.33M	-41.57M	-29.11M
	Net Income Common Stockholders
-39.43M	-53.04M	-47.92M	-45.08M	-42.69M	-30.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.15M	38.75M	96.34M	79.08M	88.97M	157.15M
	Total Assets
87.54M	45.21M	103.95M	85.65M	126.49M	162.88M
	Total Debt
4.15M	2.36M	4.61M	6.18M	6.17M	6.13M
	Net Debt
-77.00M	-36.40M	-91.73M	-18.31M	-36.58M	-151.02M
	Total Liabilities
20.91M	16.39M	27.44M	17.16M	15.12M	13.46M
	Stockholders Equity
66.62M	28.82M	76.51M	68.49M	111.37M	149.43M
Cash Flow		Free Cash Flow
-46.50M	-55.96M	-33.28M	-41.69M	-35.97M	-27.59M
	Operating Cash Flow
-46.50M	-55.96M	-33.27M	-41.68M	-35.88M	-27.52M
	Investing Cash Flow
9.30M	0.00	55.78M	23.69M	-79.17M	-74.00K
	Financing Cash Flow
-1.55M	-1.62M	49.14M	-241.00K	643.00K	181.03M

Spruce Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.18, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 17.54 is Positive, neither overbought nor oversold. The STOCH value of 12.96 is Positive, 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
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
XBIO	43 Neutral	$4.63M	―	-53.16%	―	-1.56%	5.01%
SPRB	35 Underperform	$2.66M	―	-135.33%	―	-51.32%	-1.76%
KZIA	31 Underperform	$4.00M	―	-2639.52%	―	―	19.58%
WINT	28 Underperform	$2.85M	―	-120.01%	―	―	97.84%
ATNF		$5.37M	―	-221.23%	―	―	―
ALZN		$2.92M	―	-1092.96%	―	―	―

Spruce Biosciences Corporate Events

Spruce Biosciences Acquires TA-ERT for Rare Disease Focus

On April 15, 2025, Spruce Biosciences announced a new corporate strategy and the acquisition of tralesinidase alfa enzyme replacement therapy (TA-ERT) for treating Sanfilippo Syndrome Type B (MPS IIIB). The company plans to seek accelerated approval from the U.S. FDA for TA-ERT, aiming to submit a Biologics License Application in the first half of 2026. This acquisition marks a significant shift in Spruce’s focus towards rare diseases, with TA-ERT showing promising results in clinical studies. The company intends to commercialize TA-ERT globally, establishing a specialized commercial organization in the U.S. and collaborating with regional partners internationally. Financially, Spruce reported $38.8 million in cash and cash equivalents as of December 31, 2024, which is expected to support operations through the end of 2025.

Spark’s Take on SPRB Stock

According to Spark, TipRanks’ AI Analyst, SPRB is a Underperform.

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.

To see Spark’s full report on SPRB stock, click here.