Viracta Therapeutics (VIRX) AI Stock Analysis

• Market Cap: $572.32K
• Dividend Yield: N/A
• Average Volume (3M): 140.36K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.50
• Revenue Growth: N/A
• EPS Growth: 10.59%
• Country: US
• Employees: 26
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 39,744,220
• 10 Day Avg. Volume: 136,977
• 30 Day Avg. Volume: 140,363
• PEG Ratio: 0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.55
• Enterprise Value/Market Cap: 76.11
• Enterprise Value/Revenue: 14.76
• Enterprise Value/Gross Profit: 106.50
• Enterprise Value/Ebitda: -0.25
• 1Y Price Target: $0.25
• Price Target Upside: 2400.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 28 Underperform
• Price Target: ―

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. (VIRX) is a precision oncology company focused on developing targeted therapies for virus-associated cancers. The company's core product pipeline is centered around its proprietary drug candidates that are designed to selectively target and inhibit the viral proteins associated with certain cancer types, thereby enhancing the effectiveness of cancer treatment. Viracta's lead clinical program is aimed at treating Epstein-Barr virus (EBV)-associated malignancies, leveraging its novel approach to provide more effective treatment options for patients.

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
EBITDA	-39.67M	-46.86M	-48.41M	-114.09M	-18.77M	-22.82M
Net Income	-43.29M	-51.06M	-49.77M	-203.06M	-19.20M	-23.33M
Balance Sheet
Total Assets	21.96M	56.69M	95.99M	108.55M	48.30M	37.24M
Cash, Cash Equivalents and Short-Term Investments	21.13M	53.69M	91.04M	103.55M	47.09M	34.63M
Total Debt	16.91M	25.56M	25.16M	5.48M	6.18M	6.28M
Total Liabilities	28.57M	38.37M	34.89M	14.18M	94.50M	9.70M
Stockholders Equity	-6.62M	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: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRX, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 3.23 is Positive, neither overbought nor oversold. The STOCH value of -75.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIRX.

Viracta Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	HK$15.54B	5.61	-7.44%	4.07%	11.55%	-28.15%
AGEN	56 Neutral	$133.25M	―	260.68%	―	-38.34%	31.19%
BLUE	51 Neutral	$48.67M	―	-546.55%	―	127.51%	56.94%
ADAP	48 Neutral	$71.11M	―	-273.36%	―	883.05%	62.93%
KPTI	43 Neutral	$40.18M	―	41.08%	―	1.19%	61.65%
VIRX	28 Underperform	$572.32K	―	-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.