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ARS Pharmaceuticals (SPRY)
NASDAQ:SPRY
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ARS Pharmaceuticals
(NASDAQ:SPRY)
Rating:57Neutral
Price Target:
$14.00
▼(-3.65%Downside)
Positive Factors
Market Expansion
ARS Pharmaceuticals' new commercial partnership with ALK is expected to strengthen their financial position with a $145M upfront payment, aiding in the US launch efforts for neffy.
Pediatric Market Expansion
Recent 1 mg neffy pediatric-dose approval and launch significantly expands the addressable market as ~23% of epi prescriptions are in the 15-30 kg weight class.
Product Differentiation
Neffy’s longer shelf life and smaller form factor offer additional differentiation over currently available treatments that will drive both conversion of market share and expansion of the total epinephrine market in the United States.
Negative Factors
Operating Expenses
Operating expenses guidance for fiscal year 2025 is expected to increase, although management emphasized that cash flow should not be impacted.
Revenue Expectations
ARS reported net product revenues for neffy of $7.8 million, slightly below consensus from Visible Alpha of $8.0 million.
ARS Pharmaceuticals (SPRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.42B
Dividend YieldN/A
Average Volume (3M)1.36M
Price to Earnings (P/E)174.1
Beta (1Y)1.59
Revenue Growth971120.00%
EPS Growth68.69%
CountryUS
Employees155
SectorHealthcare
Sector Strength39
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.35
Shares Outstanding98,213,560
10 Day Avg. Volume1,306,042
30 Day Avg. Volume1,362,335
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)5.13
Price to Sales (P/S)0.00
P/FCF Ratio101.65
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue13.77
Enterprise Value/Gross Profit14.40
Enterprise Value/Ebitda-6.97
Forecast
1Y Price Target
$29.50Price Target Upside103.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
ARS Pharmaceuticals Business Overview & Revenue Model
Company DescriptionARS Pharmaceuticals, Inc. develops ARS-1, a novel intranasal epinephrine spray with absorption technology for patients and their families at-risk of severe allergic reactions to food, medications, and insect bites. Its product includes Neffy, a low-dose intranasal epinephrine nasal spray. The company was incorporated in 2015 and is based in San Diego, California.
How the Company Makes MoneyARS Pharmaceuticals generates revenue primarily through the sale of its proprietary product, Neffy. The company seeks to capture a share of the allergy treatment market by offering a unique, non-invasive alternative to traditional epinephrine auto-injectors. Revenue is driven by direct sales to healthcare providers, pharmacies, and potentially through partnerships with distributors or other pharmaceutical companies. Additionally, ARS Pharmaceuticals may engage in licensing agreements or strategic collaborations to expand the reach and adoption of their products globally. Their revenue model relies on market penetration, product acceptance among patients and healthcare professionals, and competitive pricing strategies.
ARS Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 8.84%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong market entry for Neffy with notable revenue growth and expanded insurance coverage. Strategic collaborations and a focus on pediatric dosing are positive, but high operating expenses and a net loss remain challenges. Prior authorization requirements continue to be a barrier, although they are decreasing.Q1-2025 Updates
Positive Updates
Neffy Launch and Market Potential
Neffy, the first needle-free epinephrine treatment, launched with a potential $3 billion net sales target in the U.S. market. It addresses significant unmet needs, gaining traction as a new standard of care.
Revenue Growth
Neffy generated $7.8 million in U.S. net product revenue in Q1 2025, with a total revenue of $8 million, indicating a strong market entry.
Insurance Coverage Expansion
Commercial insurance coverage for Neffy increased from 27% to 57%, with ongoing payer discussions expected to further increase coverage.
Successful Strategic Collaboration
ARS expanded a strategic collaboration with ALK-Abelló, enhancing commercial reach to over 20,000 healthcare providers, including 9,000 pediatricians.
Approval and Launch of Pediatric Dose
Neffy 1-milligram dose was approved by the FDA and launched for children, representing 23% of all epinephrine units dispensed in 2024.
Planned Direct-to-Consumer Campaign
A comprehensive DTC campaign, 'Hello neffy, Goodbye Needles', is set to launch, targeting a 95% reach of severe allergy patients and their caregivers.
Negative Updates
High Operating Expenses
Operating expenses for Q1 were $41.1 million, with a projected total of $210 million to $220 million for 2025, driven by marketing and commercialization efforts.
Net Loss
Reported a net loss of $33.9 million or $0.35 per share for Q1 2025.
Prior Authorization Challenges
About 43% of commercial lives still require prior authorization for Neffy, posing a barrier to broader adoption despite high approval rates.
Company Guidance
During ARS Pharmaceuticals' first quarter 2025 earnings call, the company provided guidance highlighting several key metrics. The launch of neffy, a needle-free epinephrine treatment, has shown promising results with first-quarter U.S. net product revenue of $7.8 million. Neffy addresses a market potential of $3 billion in net sales, targeting approximately 6.5 million prescribed patients and an additional 13.5 million diagnosed patients without prescriptions. The company has achieved 57% commercial insurance coverage, up from 27% at the start of the year, and expects further demand growth with an upcoming direct-to-consumer campaign. The 1-milligram pediatric dose has also been approved and represents 23% of all epinephrine units dispensed in 2024. ARS is expanding its commercial reach through a collaboration with ALK-Abelló, aiming to target over 20,000 healthcare providers, including 9,000 pediatricians, to strengthen neffy's position as a leading epinephrine option. The company is also anticipating regulatory reviews and potential launches in the U.K., Canada, Japan, China, and Australia from mid-2025 through the first half of 2026.ARS Pharmaceuticals Financial Statement Overview
Summary
ARS Pharmaceuticals has demonstrated remarkable revenue growth and improvement in net income recently, indicating operational improvements. The balance sheet is strong with low leverage and improving equity, although cash flow statements show caution due to high investing activities. While profitability remains a challenge, recent trends show potential for future stabilization and growth.Income Statement
ARS Pharmaceuticals showed significant revenue growth from 2023 to 2024, with total revenue jumping from $30,000 to $89,149,000, indicating strong potential. However, the company has struggled with profitability, evidenced by negative EBIT and EBITDA margins over the years. The net profit margin turned positive in 2024, a promising sign, but overall profitability remains inconsistent.45
Neutral
Balance Sheet
The balance sheet reveals a strong equity position, with stockholders' equity growing from negative figures in earlier years to a robust $256,798,000 in 2024. The debt-to-equity ratio is low, indicating low leverage risk. The equity ratio has improved, suggesting increased financial stability. However, fluctuations in total liabilities reflect some instability.62
Positive
Cash Flow
Cash flow analysis shows a turnaround, with free cash flow becoming positive in 2024 after previous negative years. Operating cash flow to net income ratio improved, signaling better cash generation relative to income. However, investing cash flows were significantly negative, highlighting high capital expenditures or investments.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 89.15M | 30.00K | 1.32M | 5.51M | 17.84M |
| Gross Profit | ||||
| 88.17M | -43.00K | -16.00M | -14.77M | 3.77M |
| EBIT | ||||
| -3.08M | -67.52M | -35.52M | -19.45M | -469.00K |
| EBITDA | ||||
| -3.08M | -67.45M | -35.52M | -19.24M | -463.00K |
| Net Income Common Stockholders | ||||
| 8.00M | -54.37M | -33.99M | -20.24M | -1.06M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 314.02M | 228.36M | 274.38M | 60.06M | 24.52M |
| Total Assets | ||||
| 351.15M | 233.19M | 281.44M | 61.45M | 26.41M |
| Total Debt | ||||
| 42.00K | 274.00K | 481.00K | 9.03M | 10.02M |
| Net Debt | ||||
| -50.77M | -70.70M | -210.04M | -51.03M | -14.50M |
| Total Liabilities | ||||
| 94.36M | 2.43M | 8.55M | 92.72M | 40.46M |
| Stockholders Equity | ||||
| 256.80M | 230.76M | 272.89M | -31.27M | -14.05M |
| Cash Flow | Free Cash Flow | |||
| 12.98M | -59.44M | -40.28M | -17.62M | 8.15M |
| Operating Cash Flow | ||||
| 13.55M | -59.27M | -40.08M | -17.56M | 9.07M |
| Investing Cash Flow | ||||
| -106.10M | -87.18M | -199.00K | -55.00K | -917.00K |
| Financing Cash Flow | ||||
| 72.40M | 6.90M | 190.73M | 53.16M | 5.10M |
ARS Pharmaceuticals Technical Analysis
Positive
14.53
Price Trends
13.80
Positive
12.91
Positive
13.28
Positive
Market Momentum
0.30
Negative
54.08
Neutral
41.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRY, the sentiment is Positive. The current price of 14.53 is above the 20-day moving average (MA) of 13.98, above the 50-day MA of 13.80, and above the 200-day MA of 13.28, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 41.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRY.
ARS Pharmaceuticals Risk Analysis
ARS Pharmaceuticals disclosed 72 risk factors in its most recent earnings report. ARS Pharmaceuticals 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 3 New Risks
1.
We expect that timing of sales and our results of operations will fluctuate for the foreseeable future, which may make it difficult to predict our future performance from period to period.* Q3, 2024
2.
We have incurred significant losses since our inception.* Q3, 2024
3.
If we are unable to successfully develop neffy for additional indications, or experience significant delays in doing so, the commercial potential of neffy will be more limited.* Q3, 2024
ARS Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.94B | ― | -5.78% | ― | 25.50% | 64.63% | |
57 Neutral | $1.42B | 174.05 | -6.91% | ― | 971120.00% | 68.69% | |
53 Neutral | $5.23B | 3.23 | -44.27% | 2.82% | 16.82% | 0.11% | |
49 Neutral | $2.03B | ― | -16.57% | ― | ― | ― | |
44 Neutral | $1.32B | ― | -21.26% | ― | ― | ― | |
40 Underperform | $1.55B | ― | -30.29% | ― | ― | 7.97% | |
39 Underperform | $2.02B | ― | -39.49% | ― | ― | -20.03% |
* Healthcare Sector Average
Performance Comparison
SPRY
ARS Pharmaceuticals
14.53
5.42
59.50%
MESO
Mesoblast
10.55
3.27
44.92%
IMCR
Immunocore Holdings
38.64
-4.41
-10.24%
EWTX
Edgewise Therapeutics
14.84
-3.17
-17.60%
VERA
Vera Therapeutics
32.00
-9.18
-22.29%
CGON
CG Oncology, Inc.
26.79
-9.21
-25.58%
ARS Pharmaceuticals Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
ARS Pharmaceuticals Highlights Success and Plans for 2025
Positive
Jan 13, 2025
ARS Pharmaceuticals announced preliminary financial results for the fourth quarter of 2024 and outlined its objectives for 2025, emphasizing the success of neffy, their intranasal epinephrine product. The company reported approximately $6.5 million in net product revenue for the quarter, with plans to expand commercial access and consumer awareness, aiming for over 80% insurance coverage by the third quarter of 2025. Notably, neffy has been added to major pharmacy formularies and a direct-to-consumer marketing campaign is set to launch in May 2025 to increase brand recognition and patient engagement.
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.