Talphera (TLPH) AI Stock Analysis

• Market Cap: $17.44M
• Dividend Yield: N/A
• Average Volume (3M): 4.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -93.22%
• EPS Growth: 36.97%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.10
• Shares Outstanding: 20,522,655
• 10 Day Avg. Volume: 7,601,068
• 30 Day Avg. Volume: 4,771,978
• 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: 0.89
• Enterprise Value/Revenue: 577.74
• Enterprise Value/Gross Profit: 11.85
• Enterprise Value/Ebitda: -1.37
• 1Y Price Target: $3.00
• Price Target Upside: 252.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ―

Talphera faces significant financial hurdles with negative income and cash flows, impacting its overall score. While technical indicators are mixed, the stock is underperforming key moving averages. Valuation remains a challenge with a negative P/E ratio. The earnings call provided some optimism with regulatory approvals and financing, but operational challenges persist. The combination of these factors results in a low overall score.

Positive Factors

Regulatory Approvals

The FDA approval to reduce the study size while maintaining statistical power enhances Talphera's ability to efficiently complete trials, strengthening its product pipeline and market readiness.

Financial Backing

Securing significant investment provides Talphera with necessary capital to advance its clinical trials, supporting long-term growth and operational stability.

Expense Management

Effective expense management through reduced operating costs improves cash flow and financial health, allowing for better allocation of resources towards strategic initiatives.

Negative Factors

Revenue Decline

A severe decline in revenue indicates significant market challenges and operational inefficiencies, threatening long-term sustainability and competitive positioning.

Negative Cash Flow

Ongoing negative cash flow highlights operational challenges and reliance on external financing, which can constrain growth and strategic flexibility.

Enrollment Challenges

Delays in patient enrollment due to site performance issues can impede clinical trial progress, affecting product development timelines and market entry.

Talphera Business Overview & Revenue Model

Company Description

Talphera, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapies for use in medically supervised settings. Its lead product candidate is Niyad, a lyophilized formulation of nafamostat, which is under an investigational device exemption as an anticoagulant for the extracorporeal circuit. It is also developing LTX-608, an anti-inflammatory and antiviral potential for the treatment of multiple conditions, including COVID-19, disseminated intravascular coagulation (DIC), acute respiratory distress syndrome (ARDS), and acute pancreatitis; Fedsyra, a pre-filled ephedrine syringe; and PFS-02, a pre-filled phenylephrine syringe. The company was formerly known as AcelRx Pharmaceuticals, Inc. and changed its name to Talphera, Inc. in January 2024. Talphera, Inc. was incorporated in 2005 and is headquartered in San Mateo, California.

How the Company Makes Money

Talphera generates revenue primarily through its cloud computing and SaaS offerings. The company provides subscription-based services for its software products, which include productivity tools, data analytics platforms, and customer relationship management (CRM) systems. Additionally, Talphera offers customized IT consulting services, charging clients based on project scope and duration. Significant partnerships with major technology firms enhance its service offerings and extend its market reach, contributing to its earnings. The company's revenue model emphasizes recurring income through subscription renewals and long-term consulting contracts, ensuring a stable and predictable cash flow.

Talphera Financial Statement Overview

Summary

Talphera's financial performance is concerning, with negative net income and declining revenue. Despite a reduction in debt and some equity improvement, the company faces operational inefficiencies and negative cash flows.

Income Statement

Talphera's income statement reveals significant challenges with consistently negative net income and declining revenue. The company has experienced a decrease in total revenue from $5.42 million in 2020 to $0 in 2024, indicating a severe contraction in sales. Gross profit margins have also been negative, demonstrating inefficiencies in production or sales. EBIT and EBITDA margins are substantially negative, highlighting ongoing operational difficulties.

Balance Sheet

The balance sheet shows a reduction in total debt over recent years, leading to a current Debt-to-Equity ratio of zero, which is positive. However, the company has struggled with equity deficits in previous years, though it has improved to positive equity in 2024. The Equity Ratio remains low, suggesting limited financial stability. The return on equity is not calculable given the fluctuating and negative net income history.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, indicating challenges in generating operational cash. However, there is some improvement in operating cash flow from 2023 to 2024, albeit still negative. The company's reliance on financing activities to support cash flows is evident, highlighting a potential risk if external funding sources become restricted.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.00K	0.00	651.00K	1.77M	2.82M	5.42M
Gross Profit	1.32M	-6.72M	340.00K	-820.00K	-935.00K	-616.00K
EBITDA	-11.38M	-15.25M	-9.84M	61.90M	-30.83M	-35.22M
Net Income	-11.30M	-13.00M	-18.40M	47.76M	-35.10M	-40.38M
Balance Sheet
Total Assets	16.52M	18.24M	20.39M	47.49M	77.89M	66.30M
Cash, Cash Equivalents and Short-Term Investments	6.79M	8.86M	9.38M	15.77M	46.63M	42.89M
Total Debt	6.50M	6.53M	0.00	5.36M	103.91M	25.60M
Total Liabilities	9.89M	10.23M	6.29M	25.67M	113.79M	122.05M
Stockholders Equity	6.63M	8.00M	14.11M	21.81M	-35.89M	-55.75M
Cash Flow
Free Cash Flow	-11.61M	-12.68M	-17.59M	-28.70M	-31.83M	-40.36M
Operating Cash Flow	-11.61M	-12.68M	-17.49M	-28.33M	-30.00M	-38.51M
Investing Cash Flow	600.00K	3.78M	-528.00K	36.45M	-26.12M	34.14M
Financing Cash Flow	4.38M	12.04M	3.47M	-507.00K	41.51M	16.96M

Talphera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLPH, the sentiment is Positive. The current price of 0.85 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.48, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 87.31 is Negative, neither overbought nor oversold. The STOCH value of 59.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLPH.

Talphera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.90B	-0.36	-43.38%	2.23%	22.34%	-2.15%
EVOK	46 Neutral	$8.10M	―	-152.92%	―	70.02%	82.33%
YCBD	44 Neutral	$6.31M	―	-33.13%	―	-7.80%	90.17%
TLPH	41 Neutral	$17.44M	―	-117.56%	―	-93.22%	36.97%
SISI	―	$255.32M	―	-58.27%	―	―	―
SBFM	44 Neutral	$6.42M	―	-25.65%	―	19.22%	98.73%
IMCC	39 Underperform	$9.71M	―	-36.94%	―	2.17%	88.34%