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Spruce Biosciences (SPRB)
NASDAQ:SPRB
US Market

Spruce Biosciences (SPRB) AI Stock Analysis

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Spruce Biosciences

(NASDAQ:SPRB)

35Underperform
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
Market Potential
TA-ERT has Fast Track designation, Rare Pediatric Disease Designation (RPDD), and Orphan Drug status in the U.S. and EU.
Regulatory Progress
The FDA confirmed that the completed clinical and non-clinical studies of TA-ERT were sufficient for a BLA submission and provided confirmatory trial design guidance.
Strategic Acquisitions
Spruce Biosciences acquired tralesinidase alfa, an enzyme replacement therapy, originally developed by BioMarin, which is in late-stage development and has a seemingly de-risked path to approval.
Negative Factors
Cash Flow Concerns
The company's cash resources are slated to fund operations only through 2025.
Clinical Setbacks
Spruce Biosciences disclosed disappointing data from recent studies with tildacerfont and has been evaluating strategic opportunities.
Financial Constraints
Spruce still lacks the capital to complete a Biologics License Application (BLA), let alone fund operations through the BLA review period at the FDA.

Spruce Biosciences (SPRB) vs. S&P 500 (SPY)

Spruce Biosciences Business Overview & Revenue Model

Company DescriptionSpruce 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 MoneySpruce 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
25
Negative
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
40
Negative
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
35
Negative
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.91M10.09M0.000.000.00
Gross Profit
4.91M-39.34M-429.00K-381.00K-102.00K
EBIT
-56.15M-51.99M-47.28M-42.07M-29.42M
EBITDA
-56.15M-47.37M-45.33M-41.57M-29.11M
Net Income Common Stockholders
-53.04M-47.92M-45.08M-42.69M-30.03M
Balance SheetCash, Cash Equivalents and Short-Term Investments
38.75M96.34M79.08M88.97M157.15M
Total Assets
45.21M103.95M85.65M126.49M162.88M
Total Debt
2.36M4.61M6.18M6.17M6.13M
Net Debt
-36.40M-91.73M-18.31M-36.58M-151.02M
Total Liabilities
16.39M27.44M17.16M15.12M13.46M
Stockholders Equity
28.82M76.51M68.49M111.37M149.43M
Cash FlowFree Cash Flow
-55.96M-33.28M-41.69M-35.97M-27.59M
Operating Cash Flow
-55.96M-33.27M-41.68M-35.88M-27.52M
Investing Cash Flow
0.0055.78M23.69M-79.17M-74.00K
Financing Cash Flow
-1.62M49.14M-241.00K643.00K181.03M

Spruce Biosciences Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.29
Negative
100DMA
0.35
Negative
200DMA
0.42
Negative
Market Momentum
MACD
-0.06
Positive
RSI
19.97
Positive
STOCH
18.93
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 0.08 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.29, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 19.97 is Positive, neither overbought nor oversold. The STOCH value of 18.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRB.

Spruce Biosciences Risk Analysis

Spruce Biosciences disclosed 76 risk factors in its most recent earnings report. Spruce Biosciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Spruce Biosciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.38B3.59-41.63%2.87%17.72%1.87%
43
Neutral
$4.32M-50.12%-1.56%5.01%
35
Underperform
$3.32M-100.70%-51.32%-1.76%
31
Underperform
$4.01M-2639.52%19.58%
18
Underperform
$931.00K-21.57%97.84%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPRB
Spruce Biosciences
0.08
-0.66
-89.19%
KZIA
Kazia Therapeutics
3.59
-10.53
-74.58%
WINT
Windtree Therapeutics
1.17
-215.33
-99.46%
XBIO
Xenetic Biosciences
2.84
-1.06
-27.18%
ATNF
180 Life Sciences
0.89
-1.11
-55.50%
ALZN
Alzamend Neuro
0.66
-6.69
-91.02%

Spruce Biosciences Corporate Events

M&A TransactionsBusiness Operations and Strategy
Spruce Biosciences Acquires TA-ERT for Rare Disease Focus
Positive
Apr 15, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.