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Veru (VERU)
NASDAQ:VERU
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Veru (VERU) AI Stock Analysis

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VERU

Veru

(NASDAQ:VERU)

Rating:47Neutral
Price Target:
$3.50
▲(5.74% Upside)
Veru's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. While the earnings call provided some optimism with positive clinical results and regulatory progress, the company's financial challenges and valuation concerns weigh heavily on the score.
Positive Factors
Clinical Study Success
The Ph. IIb QUALITY study has achieved full enrollment of over 150 patients, with top-line data expected to provide insights into enobosarm's effectiveness.
Potential Partnerships
Positive results from the QUALITY trial could help the company secure a partnership before advancing enobosarm into a pivotal program for the treatment of obesity.
Strategic Business Moves
VERU has strategically monetized its FC2 female condom business for $18M to focus solely on enobosarm's development.
Negative Factors
Market Competition
The ease of administration for enobosarm (an oral drug) compares favorably to other competing treatment options that require intravenous administration.
Stock Volatility
A significant intra-day stock sell-off was attributed to the lack of meaningful weight loss benefits observed during the initial period of the study.
Study Challenges
The ongoing Phase 2b QUALITY trial of enobosarm in combination with Wegovy (semaglutide) for the treatment of sarcopenic obesity is on track to report topline data in January 2025.

Veru (VERU) vs. SPDR S&P 500 ETF (SPY)

Veru Business Overview & Revenue Model

Company DescriptionVeru Inc., an oncology biopharmaceutical company, focuses on developing medicines for the management of cancers. Its commercial products comprise FC2 female condom/internal condom for the dual protection against unintended pregnancy and the transmission of sexually transmitted infections for ministries of health, government health agencies, U.N. agencies, nonprofit organizations, and commercial partners. The company's development drug candidates include Enobosarm, an oral selective androgen receptor agonist that is in phase III clinical trial for the treatment of AR+ ER+ HER2- metastatic breast cancer; Sabizabulin, which is phase IIb clinical trial for the treatment of AR+ ER+ HER2- metastatic breast cancer; Enobosarm + abemaciclib combination therapy, which is in phase III clinical trial for the treatment of AR+ ER+ HER2- metastatic breast cancer; and Sabizabulin + enobosarm combination therapy, an oral targeted cytoskeleton disruptor plus selective androgen receptor agonist, which is in phase II clinical trial for the treatment of metastatic triple negative breast cancer. Its drug candidates also comprise Sabizabulin, which is in Phase II clinical trial for the treatment of metastatic castration and androgen receptor targeting agent resistant prostate cancer; VERU-100, a GnRH antagonist peptide injection, which is in Phase II clinical trial for the treatment of advanced hormone sensitive prostate cancer; Zuclomiphene Citrate, which is in Phase II clinical trial for treating hot flashes; and Sabizabulin, which is in phase III clinical trial for the treatment of SARS-CoV-2 in subjects at high risk for acute respiratory distress syndrome. In addition, the company is advancing a new drug formulation for the treatment of men with lower urinary tract symptoms from an enlarged prostate. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.
How the Company Makes MoneyVeru generates revenue primarily through the commercialization of its pharmaceutical products, which includes sales from its approved therapies. The company also engages in research and development partnerships with other pharmaceutical companies, which can provide additional funding and resources in exchange for shared rights to new drugs. Additionally, Veru may receive milestone payments and royalties from licensing agreements related to its drug candidates. The ongoing development of its pipeline products and successful clinical trials are critical to expanding its revenue streams.

Veru Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant positive clinical trial results and a promising regulatory pathway for Inovasarm, which are offset by financial challenges and cash flow concerns. Despite the financial difficulties, the clinical advancements and regulatory progress suggest a positive outlook for the company's drug development efforts.
Q3-2025 Updates
Positive Updates
Successful Phase 2b Clinical Trial Results
The Phase 2b clinical trial for Inovasarm showed a 42% greater relative loss of fat mass compared to the placebo group, with a statistically significant preservation of total lean mass. The trial demonstrated a reduction in the proportion of patients experiencing a decline in physical function.
Positive Safety Profile
Inovasarm displayed a positive safety profile in the Phase 2b trial, with no significant adverse events such as gastrointestinal side effects or liver injury. The safety profile was maintained even after discontinuation of semaglutide.
Novel Modified Release Formulation
A new modified release oral formulation of Inovasarm was developed, demonstrating a distinct target product release profile and extended patent protection through 2037.
Optimistic Regulatory Pathway
Veru has scheduled a meeting with the FDA for regulatory clarity on the Phase 3 program, with previous FDA feedback supporting the clinical path forward.
Reduction in Operating Expenses
Research and development costs decreased from $4.8 million to $3 million, and selling, general, and administrative expenses decreased from $5.8 million to $5 million.
Negative Updates
Financial Loss
Veru reported a net loss of $7.3 million for continuing operations and a net loss of $17 million for the nine months ended June 30, 2025.
Cash Flow Concerns
The company has a cash balance of $15 million, which is not sufficient to fund operations for the next twelve months, indicating a need for additional capital.
Reverse Stock Split
A one-for-ten reverse stock split was executed, potentially reflecting concerns about the company's stock price and market perception.
Company Guidance
During the Veru Inc. investors conference call, the company provided detailed guidance on their clinical-stage drug candidates, particularly focusing on the Phase 2b study outcomes for Inovasarm. The study demonstrated a 100% preservation of lean mass in patients over 60 years old, using Inovasarm in combination with semaglutide, compared to a 66% fat mass loss and 34% lean mass loss in the placebo group. The six-milligram dose of Inovasarm showed a 42% greater fat loss relative to placebo. Furthermore, the safety profile showed no significant adverse events post semaglutide discontinuation. Financially, the company reported a net loss of $7.3 million for the quarter ending June 30, 2025, with research and development costs decreasing to $3 million due to the completion of the Phase 2b study. The call also highlighted the development of a novel modified release formulation of Inovasarm intended for Phase III clinical studies, which has shown promising pharmacokinetic profiles and is protected by global patents through 2037. The company is seeking regulatory clarity from the FDA for its Phase III program, targeting an older population at risk for muscle weakness and falls.

Veru Financial Statement Overview

Summary
Veru's financial performance is under significant pressure with a declining revenue trend and large net losses, leading to a negative net profit margin. Despite a strong equity base and low leverage, the company's inability to generate positive earnings and cash flow underscores major operational challenges.
Income Statement
41
Neutral
Veru's income statement reveals significant challenges with profitability. The company has experienced declining revenues, with a 12.7% decrease from the previous year, and a negative net profit margin of -260.8% TTM due to substantial net losses. Although gross profit margin remains positive at 31.9%, the EBIT and EBITDA margins are severely negative, indicating operational inefficiencies. This suggests that Veru is struggling to manage its operating expenses effectively in relation to its revenue.
Balance Sheet
54
Neutral
Veru maintains a relatively moderate debt-to-equity ratio of 0.13 TTM, indicating a conservative approach to leveraging. The equity ratio is 66.9%, which showcases a strong reliance on equity financing and a robust capital base. However, the return on equity is negative at -144.4% TTM, reflecting the company's inability to generate profits from its equity base. This highlights a need for improvement in generating returns for shareholders.
Cash Flow
38
Negative
The cash flow statement shows that Veru is facing challenges with cash generation, having negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is negative, indicating that the company is not converting its net income into free cash flow. This raises concerns about Veru's ability to sustain its operations and invest in future growth without additional financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.66M16.89M16.30M39.35M61.26M42.59M
Gross Profit2.56M5.85M7.57M30.59M47.93M30.79M
EBITDA-34.39M-36.20M-89.98M-79.23M9.75M-14.65M
Net Income-32.71M-37.80M-93.15M-83.78M7.39M-18.97M
Balance Sheet
Total Assets27.33M60.42M50.02M136.13M178.15M51.54M
Cash, Cash Equivalents and Short-Term Investments15.01M24.92M9.63M80.19M122.36M13.59M
Total Debt3.25M13.86M14.41M15.88M13.74M14.14M
Total Liabilities11.99M28.10M30.34M55.29M25.85M21.43M
Stockholders Equity15.34M32.32M19.68M80.84M152.29M30.11M
Cash Flow
Free Cash Flow-28.98M-21.84M-88.68M-48.24M-15.95M-2.04M
Operating Cash Flow-28.92M-21.68M-88.01M-47.51M-15.57M-1.93M
Investing Cash Flow19.00M146.21K6.33M4.27M14.62M-105.76K
Financing Cash Flow-4.22M36.83M11.11M1.07M109.72M9.33M

Veru Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.31
Price Trends
50DMA
4.82
Negative
100DMA
5.17
Negative
200DMA
5.77
Negative
Market Momentum
MACD
-0.42
Negative
RSI
34.69
Neutral
STOCH
15.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERU, the sentiment is Negative. The current price of 3.31 is below the 20-day moving average (MA) of 3.47, below the 50-day MA of 4.82, and below the 200-day MA of 5.77, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 15.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERU.

Veru Risk Analysis

Veru disclosed 58 risk factors in its most recent earnings report. Veru reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Veru Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.90B-0.33-41.69%2.23%23.45%-1.99%
47
Neutral
$48.08M-96.35%-52.76%43.40%
43
Neutral
$74.41M-532.89%316.13%18.34%
36
Underperform
$176.01M-85.21%38.94%
33
Underperform
$156.57M11.8211.85%
30
Underperform
$169.10M-9999.00%-4.60%
$38.74M-1575.45%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VERU
Veru
3.31
-5.45
-62.21%
IMDX
Insight Molecular Diagnostics
2.56
-0.49
-16.07%
BDTX
Black Diamond Therapeutics
2.88
-2.70
-48.39%
ELTX
Elicio Therapeutics
10.36
6.37
159.65%
TNYA
Tenaya Therapeutics
1.18
-1.24
-51.24%
TELO
Telomir Pharmaceuticals, Inc.
1.18
-3.94
-76.95%

Veru Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Veru Regains Nasdaq Compliance with Bid Price
Positive
Aug 27, 2025

On August 26, 2025, Veru Inc. announced that it has regained compliance with Nasdaq’s minimum bid price requirement, a crucial step for maintaining its listing on the exchange. This follows a previous notification from August 29, 2024, where the company was given a deadline to meet the requirement after its stock price fell below $1.00 for 30 consecutive days.

Stock SplitRegulatory Filings and Compliance
Veru Implements 1-for-10 Reverse Stock Split
Neutral
Aug 12, 2025

On August 8, 2025, Veru Inc. implemented a 1-for-10 reverse stock split of its common stock, which was approved by shareholders on July 25, 2025. The reverse stock split aims to help Veru regain compliance with Nasdaq’s $1.00 minimum bid price requirement, and it will affect all shareholders uniformly without changing ownership percentages, except for cash payments in lieu of fractional shares.

Shareholder MeetingsStock Split
Veru Shareholders Approve Reverse Stock Split Proposal
Neutral
Jul 25, 2025

On July 25, 2025, Veru held a special meeting where shareholders voted on two key proposals. The first was a reverse stock split proposal, which was approved and allows the Board of Directors to determine a split ratio between 1-for-2 and 1-for-20. The second proposal, which also passed, was to adjourn the special meeting.

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.Date of analysis: Aug 28, 2025