Spruce Biosciences (SPRB) AI Stock Analysis

• Market Cap: $5.07M
• Dividend Yield: N/A
• Average Volume (3M): 2.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -86.43%
• EPS Growth: -8.91%
• Country: US
• Employees: 20
• Sector: Healthcare
• Sector Strength: 52
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 563,042
• 10 Day Avg. Volume: 4,172
• 30 Day Avg. Volume: 2,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -2.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• 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 Opportunities

Assuming approval, SPRB could be eligible for a Priority Review Voucher (PRV), an important source of non-dilutive funds for the company.

Market Strategy

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

Regulatory Approval

The FDA has deemed CSF HS-NRE a surrogate biomarker which is reasonably likely to predict clinical benefit and could serve as a basis for accelerated approval.

Negative Factors

Financial Performance

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

Liquidity Issues

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

Operational Risks

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 Business Overview & Revenue Model

Company Description

Spruce Biosciences, Inc. is a late-stage biopharmaceutical company focused on developing novel therapies for rare endocrine disorders. The company's primary product candidate, tildacerfont, is being developed to treat congenital adrenal hyperplasia (CAH), a genetic disorder affecting the adrenal glands. Spruce Biosciences operates in the biotechnology and pharmaceuticals sector, aiming to address unmet medical needs in patients with endocrine-related diseases.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Spruce Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRB, the sentiment is Positive. The current price of 9 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 7.97, and below the 200-day MA of 18.10, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRB.

Spruce Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%
XBIO	43 Neutral	$4.73M	―	-51.83%	―	-2.94%	34.52%
SPRB	35 Underperform	$5.07M	―	-133.62%	―	-86.43%	-8.91%
KZIA	31 Underperform	$8.67M	―	-3028.18%	―	―	-32.63%
WINT	28 Underperform	$2.14M	―	-169.59%	―	―	85.35%
ETHZ	―	$379.87M	―	-371.02%	―	―	―
ALZN	―	$6.72M	―	-657.17%	―	―	―

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.