Viracta Therapeutics (VIRX) AI Stock Analysis

• Market Cap: $834.63K
• Dividend Yield: N/A
• Average Volume (3M): 282.45K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.70
• Revenue Growth: N/A
• EPS Growth: 10.59%
• Country: US
• Employees: 26
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -1.10
• Shares Outstanding: 39,744,220
• 10 Day Avg. Volume: 117,356
• 30 Day Avg. Volume: 282,450
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.25
• Price Target Upside: 733.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Viracta Therapeutics faces significant financial instability, with persistent losses, negative equity, and poor cash flow management being the major concerns. The technical analysis supports a bearish outlook, with the price trading below key moving averages. The negative P/E ratio further highlights profitability issues, resulting in a low overall stock score.

Viracta Therapeutics Business Overview & Revenue Model

Company Description

Viracta Therapeutics, Inc., a precision oncology company, engages in developing drugs for the treatment of virus-associated malignancies. Its lead product candidature includes Nana-val, in combination with nanatinostat and valganciclovir that is in Phase II clinical trial for Epstein-Barr virus-positive lymphoma; and open-label Phase 2 basket trial for the treatment of various relapsed/refractory Epstein-Barr virus-positive (EBV+) lymphoma, as well as an open-label Phase 1b/2 trial for the treatment of EBV+ recurrent or metastatic nasopharyngeal carcinoma and other EBV+ solid tumors. The company's development pipeline includes vecabrutinib, a clinical-stage non-covalent ITK/BTK inhibitor and VRx-510 (formerly SNS-510), a preclinical-stage PDK-1 inhibitor. It is evaluating development and collaboration opportunities for vecabrutinib in combination with chimeric antigen receptor T-cell therapies and VRx-510 in various oncology indications. The company was formerly known as Sunesis Pharmaceuticals, Inc. to Viracta Therapeutics, Inc. in February 25, 2021. Viracta Therapeutics, Inc. was incorporated in 1998 and is headquartered in Cardiff-by-the-Sea, California.

How the Company Makes Money

Viracta Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company may earn income through partnerships, collaborations, and licensing agreements with other biotechnology or pharmaceutical companies. These partnerships often involve upfront payments, milestone payments contingent on the achievement of specific clinical or regulatory goals, and royalties on sales of any successfully commercialized products. Additionally, Viracta may seek funding through public or private offerings of equity or debt securities to support its research and development activities.

Viracta Therapeutics Financial Statement Overview

Summary

Viracta Therapeutics is struggling across all financial verticals. Persistent losses, declining equity, and negative cash flows indicate financial instability. While there is a slight recovery in revenue in the TTM period, the company faces significant challenges in achieving profitability and financial sustainability. Caution is advised due to high financial risk and dependency on external financing.

Income Statement

Viracta Therapeutics has experienced inconsistent revenue generation with a sharp decline from 2019 to 2020, followed by no revenue in 2021 and 2022. In TTM, revenue resumed at a low level. The company is operating at a net loss, resulting in negative profitability metrics, including a negative net profit margin. The gross profit margin is positive in TTM but the operating (EBIT) and EBITDA margins remain negative, indicating ongoing operational challenges.

Balance Sheet

The balance sheet shows a negative stockholders' equity in the TTM period, indicating financial instability. The debt-to-equity ratio is not calculable due to negative equity, which is a significant risk factor. Historically, the company had some equity cushion, but this has deteriorated over time. The equity ratio is also negative, further highlighting financial distress.

Cash Flow

Viracta Therapeutics has persistently negative operating and free cash flows, which is concerning given the ongoing net losses. The free cash flow growth rate is not calculable due to negative values in consecutive periods. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash. Financing activities have been a key source of liquidity, raising concerns about sustainability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
738.00K	0.00	0.00	0.00	120.00K	2.07M
	Gross Profit
409.00K	-492.00K	-210.00K	-178.00K	88.00K	2.07M
	EBIT
-47.21M	-50.69M	-50.59M	62.50M	-18.82M	-23.29M
	EBITDA
-39.67M	-46.86M	-48.41M	-114.09M	-18.77M	-22.82M
	Net Income Common Stockholders
-43.29M	-51.06M	-49.77M	-203.06M	-19.20M	-23.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.81M	53.69M	91.04M	103.55M	47.09M	34.63M
	Total Assets
27.75M	56.69M	95.99M	108.55M	48.30M	37.24M
	Total Debt
7.26M	25.56M	25.16M	5.48M	6.18M	6.28M
	Net Debt
-17.55M	13.24M	-11.62M	-98.08M	-40.91M	-11.98M
	Total Liabilities
10.67M	38.37M	34.89M	14.18M	94.50M	9.70M
	Stockholders Equity
17.09M	18.32M	61.10M	94.37M	-46.20M	27.54M
Cash Flow		Free Cash Flow
-34.80M	-40.03M	-35.50M	-23.10M	-16.11M	-22.18M
	Operating Cash Flow
-34.80M	-39.89M	-35.46M	-18.85M	-16.05M	-22.18M
	Investing Cash Flow
43.33M	15.00M	-53.87M	12.89M	-55.00K	-16.29M
	Financing Cash Flow
-8.26M	438.00K	22.54M	62.42M	44.98M	43.03M

Viracta Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRX, the sentiment is Neutral. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of -20.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VIRX.

Viracta Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
SCPX	47 Neutral	$742.42K	―	-91.23%	―	351.08%	74.79%
WINT	34 Underperform	$861.00K	―	-138.34%	―	―	94.78%
ONCO	33 Underperform	$1.10M	―	-233.77%	―	―	-97.16%
VIRX	28 Underperform	$834.63K	―	-370.13%	―	―	10.59%

Viracta Therapeutics Corporate Events

Viracta Therapeutics Explores Strategic Options After NAVAL-1 Closure

Viracta Therapeutics has announced the closure of its NAVAL-1 clinical trial for Nana-val in relapsed/refractory EBV+ lymphomas to conserve resources while exploring strategic alternatives, including potential mergers or sales. The company reassured stakeholders that the trial’s closure was not due to safety concerns and emphasized its commitment to maximizing shareholder value through various strategic options.

Viracta Therapeutics Restructures to Focus on Nana-val Program

Viracta Therapeutics, a clinical-stage precision oncology company, is prioritizing its Nana-val development program for treating relapsed Epstein-Barr virus-positive lymphoma by cutting 42% of its workforce and reducing its Board of Directors from ten to six members. This strategic move is aimed at conserving resources and streamlining operations while advancing the Nana-val program towards a potential New Drug Application submission. The reshaping of the company reflects a focused effort to align resources with pipeline priorities, ensuring the company’s sustainability and future growth.