Upstream Bio, Inc. (UPB) AI Stock Analysis

• Market Cap: $718.15M
• Dividend Yield: N/A
• Average Volume (3M): 461.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 52
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 53,793,700
• 10 Day Avg. Volume: 375,883
• 30 Day Avg. Volume: 461,792
• PEG Ratio: 0.43
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.05
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 114.74
• Enterprise Value/Gross Profit: 289.93
• Enterprise Value/Ebitda: -3.05
• 1Y Price Target: $75.00
• Price Target Upside: 461.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $12.00 ▼(-10.11%Downside)

Upstream Bio, Inc. receives a modest overall stock score of 57. The strong technical indicators provide some optimism, which is offset by significant financial performance challenges and lack of valuation clarity. The company's reliance on external financing and absence of profitability remain key concerns.

Positive Factors

Clinical Trials

Enrollment in the phase 2 VALIANT trial of verekitug in severe asthma has reached completion, which is seen positively, setting up for topline results.

Competitive Advantage

Verekitug is a differentiated, potent, and only anti-TSLP receptor mAb offering with likely Q12W or Q24W dosing, leading to a high likelihood of success.

Financial Position

Upstream Bio is well-financed with $431M cash, offering a unique investment profile.

Negative Factors

Conflict of Interest

Investors should be aware that J.P. Morgan may have a conflict of interest that could affect the objectivity of this report.

Regulatory Risks

There is a potential conflict of interest as J.P. Morgan does business with companies covered in its research reports, including Upstream Bio.

Upstream Bio, Inc. Business Overview & Revenue Model

Company Description

Upstream Bio, Inc. (UPB) is a biotechnology company focused on the development of innovative therapies for the treatment of various diseases. Operating within the healthcare and life sciences sectors, Upstream Bio specializes in researching and creating biologic products designed to address unmet medical needs. The company's core services include drug development, clinical trials, and collaboration with research institutions to advance its therapeutic pipeline.

How the Company Makes Money

Upstream Bio, Inc. primarily generates revenue through the development and commercialization of its proprietary therapies. The company may receive funding from venture capital investments, strategic partnerships, and licensing agreements with larger pharmaceutical companies. Additionally, Upstream Bio might engage in collaborative research and development projects, which can provide milestone payments and royalties based on the success of its therapeutic products in clinical trials and eventual market approval. Government grants and incentives for biotechnology innovation could also contribute to their revenue streams.

Upstream Bio, Inc. Financial Statement Overview

Summary

Upstream Bio, Inc. is experiencing significant operational and cash flow challenges. The income statement reflects minimal revenue growth with ongoing operational losses. The balance sheet is strong due to high equity, but consistent net losses could erode this over time. Cash flow is negative, highlighting reliance on external funding for operations.

Income Statement

Upstream Bio, Inc. has experienced minimal revenue growth of 95.45% from 2022 to 2023, but revenue decreased slightly by 0.42% from 2023 to 2024. The gross profit margin stands at 100%, reflecting the absence of COGS. However, the company faces significant challenges with negative EBIT and net profit margins, indicating ongoing operational losses.

Balance Sheet

The company displays a strong equity position with a debt-to-equity ratio of 0.0039 and an equity ratio of 97.55% as of 2024. Despite a high level of stockholders' equity, consistent net losses could erode this strength over time if not addressed.

Cash Flow

Free cash flow deteriorated from -$19.1 million in 2022 to -$59.7 million in 2024. The company's operating cash flow to net income ratio remains negative, highlighting cash flow challenges. Positive financing cash flow suggests reliance on external funding to manage operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	2.37M	2.38M	1.21M
Gross Profit	2.37M	2.38M	1.21M
EBITDA	-77.67M	-40.05M	-23.90M
Net Income	-62.81M	-20.54M	-23.87M
Balance Sheet
Total Assets	481.72M	117.20M	18.48M
Cash, Cash Equivalents and Short-Term Investments	470.45M	109.81M	17.05M
Total Debt	1.83M	45.00K	94.00K
Total Liabilities	11.87M	240.32M	124.63M
Stockholders Equity	469.85M	-123.13M	-106.16M
Cash Flow
Free Cash Flow	-59.68M	-38.07M	-19.10M
Operating Cash Flow	-59.17M	-37.93M	-19.02M
Investing Cash Flow	-59.48M	-82.84M	-82.00K
Financing Cash Flow	418.91M	129.55M	9.96M

Upstream Bio, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCYC	60 Neutral	$595.14M	―	-37.13%	―	-38.14%	29.69%
ZBIO	58 Neutral	$682.73M	―	-115.47%	―	―	―
UPB	57 Neutral	$718.15M	―		―	―	―
TBPH	57 Neutral	$556.51M	―	-31.46%	―	6.11%	-37.79%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
BCAX	48 Neutral	$650.62M	―	34.94%	―	―	―
PRME	43 Neutral	$585.06M	―	-115.21%	―	―	20.58%

Upstream Bio, Inc. Corporate Events

Upstream Bio Holds 2025 Annual Stockholders Meeting

Upstream Bio, Inc. held its 2025 Annual Meeting of Stockholders on June 10, 2025, where stockholders voted on two key proposals. The first proposal involved the election of Erez Chimovits and Marcella Kuhlman Ruddy as Class I directors, which was approved. The second proposal was the ratification of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, which was also ratified.

The most recent analyst rating on (UPB) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Upstream Bio, Inc. stock, see the UPB Stock Forecast page.