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Tango Therapeutics (TNGX)
NASDAQ:TNGX
US Market

Tango Therapeutics (TNGX) AI Stock Analysis

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Tango Therapeutics

(NASDAQ:TNGX)

35Underperform
Tango Therapeutics is currently facing significant financial difficulties, with consistent losses and deteriorating cash flows. The technical analysis suggests a bearish trend, while valuation metrics highlight profitability challenges. However, recent pipeline breakthroughs in cancer treatment offer a potential positive future outlook.
Positive Factors
Drug Efficacy
TNG462 had an objective response rate of 43% in 7 evaluable cholangiocarcinoma patients, which is above the 18% objective response rate for BMY's BMS-504.
Financial Performance
TNGX reported $257.9mn in cash and cash equivalents, expected to fund operations into 3Q26.
Market Sentiment
Market overreaction provides attractive stock price entry point.
Negative Factors
Clinical Trials
The first launch of TNG462 has been delayed by two years to 2028 to more accurately reflect the company's latest clinical trial plans.
Drug Safety
Safety suggests minimal adverse effects for the 160/200mg dose, but for the 300mg dose, the rates of thrombocytopenia and anemia were over 30%, above that seen for BMS-504 and AMG193.
Investor Sentiment
Investors were disappointed this update contained no numerical TNG462 efficacy data for the remaining evaluable patients, particularly pancreatic and lung which represent larger commercial opportunities.

Tango Therapeutics (TNGX) vs. S&P 500 (SPY)

Tango Therapeutics Business Overview & Revenue Model

Company DescriptionTango Therapeutics, Inc., a biotechnology company, discovers and develops drugs for the treatment of cancer. Its lead program is TNG908, a synthetic lethal small molecule inhibitor of protein arginine methyltransferase 5 that is being developed as a treatment for cancers with methylthioadenosine phosphorylase deletions. The company also develops Ubiquitin-specific protease 1, an inhibitor to treat patients with BRCA1 or BRCA2-mutant cancers; and Target 3 for STK11-mutant cancers. Tango Therapeutics, Inc. has a strategic collaboration with Gilead Sciences, Inc. for the discovery, development, and commercialization of a pipeline of therapies for patients with cancer. The company was founded in 2017 and is based in Cambridge, Massachusetts.
How the Company Makes MoneyTango Therapeutics makes money primarily through the development and commercialization of targeted cancer therapies. The company generates revenue through partnerships and collaborations with larger pharmaceutical companies, research grants, and potentially through the sale of its proprietary drugs once they receive regulatory approval. Tango may also earn milestone payments and royalties from these partnerships, particularly if their drug candidates progress through clinical trials and reach the market. The company's earnings are significantly influenced by its ability to successfully bring its therapies from the research stage to commercial availability.

Tango Therapeutics Financial Statement Overview

Summary
Tango Therapeutics faces significant financial challenges with consistent losses, negative cash flows, and declining asset and equity levels. Despite revenue growth, high operating expenses lead to negative margins, indicating operational inefficiencies and potential financial instability.
Income Statement
30
Negative
The income statement reveals a concerning trajectory with consistent losses over the years. Despite a growth in revenue from $36.53M in 2023 to $42.07M in 2024, net income remained negative at -$130.30M for 2024, indicating profitability challenges. The gross profit margin remains 100% due to no cost of goods sold; however, the net profit margin is negative due to high operating expenses. Continued negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.
Balance Sheet
45
Neutral
The balance sheet shows moderate stability with a debt-to-equity ratio of 0.18, indicating manageable leverage. However, total assets have declined, and stockholders' equity has decreased from $253.11M in 2023 to $199.52M in 2024. The equity ratio stands at 63.06%, suggesting a strong equity base, though the shrinking equity base and continual losses are concerning.
Cash Flow
35
Negative
Free cash flow has worsened, moving from -$119.51M in 2023 to -$131.50M in 2024, indicating increased cash burn. The operating cash flow to net income ratio is approximately 1.01, highlighting a close alignment between cash flow and net losses. Limited cash flow from operations raises concerns about liquidity and long-term sustainability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
42.07M36.53M24.86M37.04M7.66M
Gross Profit
42.07M-78.67M20.83M35.08M6.03M
EBIT
-145.59M-114.17M-111.07M-58.19M-52.20M
EBITDA
-145.59M-111.76M-109.46M-57.29M-51.48M
Net Income Common Stockholders
-130.30M-101.74M-108.18M-58.23M-51.86M
Balance SheetCash, Cash Equivalents and Short-Term Investments
257.92M336.88M366.13M485.25M190.32M
Total Assets
316.49M402.57M436.47M500.15M207.25M
Total Debt
36.49M38.92M41.13M1.50M7.88M
Net Debt
-33.04M-27.46M-18.84M-141.24M-20.50M
Total Liabilities
116.97M149.46M186.99M155.41M168.65M
Stockholders Equity
199.52M253.11M249.48M344.75M38.60M
Cash FlowFree Cash Flow
-131.50M-119.51M-116.77M-61.36M68.97M
Operating Cash Flow
-131.50M-117.98M-109.08M-59.53M70.07M
Investing Cash Flow
86.13M41.43M26.40M-183.43M-145.47M
Financing Cash Flow
47.66M82.41M1.61M357.32M80.88M

Tango Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.37
Price Trends
50DMA
2.28
Negative
100DMA
2.79
Negative
200DMA
5.75
Negative
Market Momentum
MACD
-0.25
Positive
RSI
24.43
Positive
STOCH
7.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNGX, the sentiment is Negative. The current price of 1.37 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 2.28, and below the 200-day MA of 5.75, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 24.43 is Positive, neither overbought nor oversold. The STOCH value of 7.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNGX.

Tango Therapeutics Risk Analysis

Tango Therapeutics disclosed 78 risk factors in its most recent earnings report. Tango Therapeutics 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

Tango Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
46
Neutral
$2.84B-19.20%-89.95%-123.71%
46
Neutral
$1.76B-43.94%-83.18%-144.95%
41
Neutral
$688.91M-54.00%59.55%3.09%
39
Underperform
$12.39M-634.71%8.83%22.06%
39
Underperform
$93.76M-98.10%-58.64%-40.05%
35
Underperform
$138.38M-57.58%15.18%-9.47%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TNGX
Tango Therapeutics
1.27
-6.37
-83.38%
CRIS
Curis
1.48
-14.53
-90.76%
EDIT
Editas Medicine
1.12
-5.69
-83.55%
NTLA
Intellia Therapeutics
7.30
-17.67
-70.76%
CRSP
Crispr Therapeutics AG
32.66
-32.40
-49.80%
BEAM
Beam Therapeutics
18.48
-10.55
-36.34%

Tango Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Tango Therapeutics Highlights Breakthroughs in Cancer Treatment
Positive
Jan 13, 2025

Tango Therapeutics has updated its corporate presentation, highlighting potential breakthroughs in its product pipeline, including best-in-class oral PRMT5 inhibitors and first-in-class oral CoREST inhibitors. These advancements are part of Tango’s strategy to treat a wide range of cancers, with ongoing and planned clinical trials that might significantly impact its market positioning and potential success in cancer therapeutics.

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.