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Ars Pharmaceuticals, Inc. (SPRY)
:SPRY
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ARS Pharmaceuticals
(NASDAQ:SPRY)
Rating:60Neutral
Price Target:
$18.00
▲(1.81%Upside)
Positive Factors
Commercial Coverage
ARS Pharmaceuticals signed contracts with the three major group purchasing organizations, which cover 94% of all individual commercial payers, and the majority are covering neffy.
Marketing Strategies
The company is implementing a direct-to-consumer marketing campaign, with early indicators showing approximately 1 million views of the ad on YouTube and over 10 million viewers through cable TV.
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
Financial Performance
ARS reported net product revenues for neffy of $7.8 million, slightly below consensus from Visible Alpha of $8.0 million.
Operating Expenses
Operating expenses guidance for fiscal year 2025 is expected to increase, although management emphasized that cash flow should not be impacted.
ARS Pharmaceuticals (SPRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.74B
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)174.1
Beta (1Y)1.60
Revenue Growth971120.00%
EPS Growth68.69%
CountryUS
Employees155
SectorHealthcare
Sector Strength37
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.35
Shares Outstanding98,213,560
10 Day Avg. Volume1,367,554
30 Day Avg. Volume1,495,915
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)7.46
Price to Sales (P/S)0.00
P/FCF Ratio-81.20
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue8.90
Enterprise Value/Gross Profit17.73
Enterprise Value/Ebitda-11.57
Forecast
1Y Price Target
$30.00Price Target Upside69.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 makes money primarily through the development, commercialization, and sales of its pharmaceutical products. The primary revenue stream is expected to come from the sales of Neffy, their proprietary epinephrine nasal spray, once it receives regulatory approval and becomes available on the market. Additionally, ARS Pharmaceuticals may engage in strategic partnerships and collaborations with other pharmaceutical companies for the co-development or distribution of their products, which could provide additional revenue through licensing agreements, milestone payments, and royalties. The company's earnings are influenced by factors such as product approval timelines, market adoption rates, and the competitive landscape within the allergic reaction treatment market.
ARS Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 32.43%|
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 shown impressive revenue growth, with a positive shift in net income and improved balance sheet indicators. However, profitability remains a challenge, and high capital expenditures are a concern, impacting cash flow.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 | 30.00K | -16.00M | -14.77M | 3.77M |
| EBITDA | -2.88M | -67.45M | -35.52M | -19.24M | -463.00K |
| Net Income | 8.00M | -54.37M | -33.99M | -20.24M | -1.06M |
Balance Sheet | |||||
| Total Assets | 351.15M | 233.19M | 281.44M | 61.45M | 26.41M |
| Cash, Cash Equivalents and Short-Term Investments | 314.02M | 228.36M | 274.38M | 60.06M | 24.52M |
| Total Debt | 42.00K | 274.00K | 481.00K | 9.03M | 10.02M |
| 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
Neutral
17.68
Price Trends
16.30
Positive
14.78
Positive
13.94
Positive
Market Momentum
0.44
Positive
53.74
Neutral
29.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRY, the sentiment is Neutral. The current price of 17.68 is below the 20-day moving average (MA) of 17.73, above the 50-day MA of 16.30, and above the 200-day MA of 13.94, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 29.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 0 New Risks
ARS Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.64B | ― | -5.78% | ― | 25.50% | 64.63% | |
60 Neutral | $1.74B | 174.05 | -6.91% | ― | 971120.00% | 68.69% | |
52 Neutral | $1.96B | ― | -21.26% | ― | ― | ― | |
51 Neutral | $7.30B | 0.27 | -62.71% | 2.44% | 15.02% | 0.60% | |
47 Neutral | $1.98B | ― | -16.57% | ― | ― | ― | |
40 Underperform | $1.50B | ― | -30.29% | ― | ― | 7.97% | |
39 Underperform | $1.33B | ― | -39.49% | ― | ― | -20.03% |
* Healthcare Sector Average
Performance Comparison
SPRY
ARS Pharmaceuticals
17.68
7.78
78.59%
MESO
Mesoblast
15.26
8.94
141.46%
IMCR
Immunocore Holdings
32.77
-6.14
-15.78%
EWTX
Edgewise Therapeutics
14.26
-1.99
-12.25%
VERA
Vera Therapeutics
20.79
-16.60
-44.40%
CGON
CG Oncology, Inc.
26.69
-5.91
-18.13%
ARS Pharmaceuticals Corporate Events
Executive/Board ChangesShareholder Meetings
ARS Pharmaceuticals Holds 2025 Annual Stockholders Meeting
Neutral
Jun 26, 2025
On June 25, 2025, ARS Pharmaceuticals, Inc. held its 2025 Annual Meeting of Stockholders. During this meeting, stockholders elected four Class II directors to serve until the 2028 Annual Meeting. Additionally, the stockholders ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
The most recent analyst rating on (SPRY) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on ARS Pharmaceuticals stock, see the SPRY Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.