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Ventyx Biosciences (VTYX)
NASDAQ:VTYX
US Market

Ventyx Biosciences (VTYX) AI Stock Analysis

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Ventyx Biosciences

(NASDAQ:VTYX)

41Neutral
Ventyx Biosciences' overall score reflects the challenges typical of a pre-revenue biotech firm, with significant financial risks due to lack of revenue and negative equity. While the company has strong liquidity, it relies heavily on external funding. The technical analysis suggests a bearish trend, and valuation metrics indicate ongoing losses, contributing to a low overall score.
Positive Factors
Clinical Trials
VTX3232 showed promising pharmacodynamic effects by achieving steady-state coverage of IL-1β in both plasma and cerebrospinal fluid in healthy volunteers during Phase 1 trials.
Financial Resources
Ventyx Biosciences has sufficient financial resources, with $252.9 million in cash and marketable securities expected to fund operations into at least the second half of 2026.
Negative Factors
Investor Sentiment
The short interest in Ventyx Biosciences is 11.2% of the float, which might indicate some investor skepticism or expectation of stock price decline.
Market Risk
Shares are down significantly as investors are in 'wait and see' mode on the company's NLRP3 franchise.

Ventyx Biosciences (VTYX) vs. S&P 500 (SPY)

Ventyx Biosciences Business Overview & Revenue Model

Company DescriptionVentyx Biosciences (VTYX) is a clinical-stage biopharmaceutical company focused on discovering and developing novel, small molecule drugs for the treatment of inflammatory and autoimmune diseases. The company is engaged in the research and development of therapies targeting clinically validated mechanisms, with an emphasis on addressing significant unmet medical needs. Ventyx's core product candidates are designed to modulate key pathways involved in immune system regulation, providing potential new treatments for conditions such as psoriasis, Crohn's disease, and ulcerative colitis.
How the Company Makes MoneyVentyx Biosciences generates revenue primarily through partnerships, collaborations, and licensing agreements with larger pharmaceutical companies. These partnerships often involve upfront payments, milestone payments contingent on the achievement of specific development or regulatory objectives, and royalties on sales of any successfully commercialized products. Additionally, Ventyx may receive funding from grants or government programs to support its research efforts. As a clinical-stage company, Ventyx does not yet generate revenue from product sales, as its therapies are still in the development and approval stages.

Ventyx Biosciences Financial Statement Overview

Summary
Ventyx Biosciences is in a critical development stage, typical for pre-revenue biotechnology companies. The financial statements reflect a company investing heavily in R&D with no revenue to support operations, relying on financing to sustain activities. While liquidity is currently adequate, the lack of revenue and negative equity pose risks to long-term sustainability. Investors should monitor progress toward revenue generation and potential equity infusions to mitigate financial risks.
Income Statement
10
Very Negative
Ventyx Biosciences has consistently reported zero revenue, which is typical for early-stage biotechnology firms focused on research and development. The net income remains negative, reflecting ongoing operational expenses without offsetting revenue. The lack of revenue growth and negative profit margins suggest financial challenges typical of pre-revenue biotech firms.
Balance Sheet
30
Negative
The company possesses a healthy cash balance with minimal debt, indicating strong liquidity. However, the negative stockholders' equity raises concerns about the company's financial stability and potential for future leverage. The debt-to-equity ratio is not applicable due to negative equity, but the low total liabilities relative to assets offer some financial resilience.
Cash Flow
20
Very Negative
Ventyx Biosciences shows negative free cash flow, which is expected for companies in the development phase. The operating cash flow remains negative, and the free cash flow trends suggest ongoing cash burn without revenue to counterbalance expenses. Financing activities have been a significant source of cash, highlighting reliance on external funding.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.00-941.00K-470.00K-30.00K0.00
EBIT
-148.45M-207.99M-113.14M-67.15M-7.05M
EBITDA
-148.45M-207.84M-107.96M-67.12M0.00
Net Income Common Stockholders
-135.12M-192.96M-107.96M-78.37M-28.53M
Balance SheetCash, Cash Equivalents and Short-Term Investments
217.32M252.22M356.61M286.72M244.00K
Total Assets
276.56M277.69M371.40M291.48M245.00K
Total Debt
10.79M12.51M1.56M0.0012.65M
Net Debt
-16.47M-39.07M-63.26M-70.79M12.40M
Total Liabilities
22.52M33.77M17.50M12.28M30.90M
Stockholders Equity
254.04M243.92M-226.22M-117.80M-30.65M
Cash FlowFree Cash Flow
-131.11M-167.04M-99.05M-38.91M-6.20M
Operating Cash Flow
-130.87M-166.52M-98.77M-38.65M-6.20M
Investing Cash Flow
-15.51M100.94M-74.93M-214.37M0.00
Financing Cash Flow
122.11M53.33M167.77M323.55M6.13M

Ventyx Biosciences Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.20
Price Trends
50DMA
1.31
Negative
100DMA
1.76
Negative
200DMA
2.00
Negative
Market Momentum
MACD
-0.04
Negative
RSI
51.82
Neutral
STOCH
85.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTYX, the sentiment is Negative. The current price of 1.2 is above the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.31, and below the 200-day MA of 2.00, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTYX.

Ventyx Biosciences Risk Analysis

Ventyx Biosciences disclosed 96 risk factors in its most recent earnings report. Ventyx Biosciences 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

Ventyx Biosciences 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
$5.32B3.41-40.36%2.89%17.93%2.52%
41
Neutral
$85.36M-54.27%39.58%
39
Underperform
$90.55M-65.08%-86.62%
35
Underperform
$65.42M-45.60%-57.45%
34
Underperform
$80.29M-107.92%298.16%50.72%
32
Underperform
$64.45M-404.07%20.85%
28
Underperform
$84.32M-49.89%65.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VTYX
Ventyx Biosciences
1.20
-2.64
-68.75%
ASMB
Assembly Biosciences
10.70
-2.20
-17.05%
ABOS
Acumen Pharmaceuticals
1.08
-2.10
-66.04%
TCRX
TScan Therapeutics
1.60
-6.08
-79.17%
CNTX
Context Therapeutics
0.94
-0.43
-31.39%
RANI
Rani Therapeutics Holdings
1.12
-5.58
-83.28%

Ventyx Biosciences Earnings Call Summary

Earnings Call Date:Feb 27, 2025
(Q1-2024)
|
% Change Since: -17.24%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant progress in clinical trials for multiple drug candidates, particularly VTX3232 and VTX2735. Financial stability was emphasized, despite a consistent net loss and high cash usage. The company appears to be on a promising path with advancements in its pipeline and preparations for future trials.
Q1-2024 Updates
Positive Updates
Positive Phase I Results for VTX3232
Announced positive top line results from a Phase I trial of VTX3232, showing excellent tolerability and potential best-in-class profile for neuroinflammatory diseases.
VTX2735 Phase II Success
VTX2735 demonstrated efficacy comparable to IL-1 biologics in a Phase II trial for cryoprin-associated periodic syndromes (CAPS), along with robust reductions in inflammatory biomarkers.
VTX002 Phase II Data and Progress
Positive Phase II data for VTX002 in ulcerative colitis, showing potential best-in-disease profile and ongoing preparations for a pivotal Phase III trial.
Financial Stability
Cash, cash equivalents, and marketable securities balance of $302.6 million as of March 31, 2024, sufficient to support planned operations into at least the second half of 2026.
Negative Updates
Net Loss Maintained
Net loss for the first quarter of 2024 was $38.6 million, similar to the $38.9 million net loss in the first quarter of 2023.
High Cash Usage
Net cash used in operating activities during the first quarter was $47.6 million, higher than reported operating expenses due to increased prepaid expenses and decreased accrued expenses.
Company Guidance
During the Ventyx Biosciences Q1 2024 earnings call, several key metrics and strategic updates were highlighted. R&D expenses for the quarter were reported at $33.7 million, a slight decrease from $35.4 million in Q1 2023, while G&A expenses rose to $8 million from $7.1 million in the previous year. The company disclosed a net loss of $38.6 million, nearly consistent with the $38.9 million loss in Q1 2023. Cash, cash equivalents, and marketable securities amounted to $302.6 million as of March 31, 2024. Ventyx anticipates a decrease in operating expenses and cash flows in subsequent quarters as it winds down certain Phase II trial programs. With the ongoing development of its NLRP3 inhibitor portfolio, the company aims to advance VTX3232 into Phase II trials for Parkinson's disease and obesity later in 2024, following positive Phase I data. Additionally, VTX2735 showed promising Phase II results in CAPS patients, demonstrating efficacy and safety, which supports its further evaluation for cardiovascular indications. The company is engaged in discussions for potential partnerships to support its Phase III trial for VTX002, following a productive End of Phase 2 meeting with the FDA.

Ventyx Biosciences Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Ventyx Biosciences Unveils 2025 Pipeline and Clinical Updates
Positive
Jan 14, 2025

Ventyx Biosciences highlighted its 2025 pipeline strategy and clinical updates for its NLRP3 inhibitor portfolio during the 43rd Annual J.P. Morgan Healthcare Conference. Key developments include the initiation of a Phase 2 trial of VTX3232 for obesity and cardiometabolic risk factors, and a Phase 2 trial of VTX2735 for recurrent pericarditis, with topline data expected in H2 2025. The company anticipates establishing itself as a leader in NLRP3 inflammasome treatment, potentially exploring opportunities in systemic and neurological diseases. Ventyx also reported a cash position of $252.9M as of December 31, 2024, expected to fund operations into H2 2026.

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.