Ventyx Biosciences (VTYX) AI Stock Analysis

• Market Cap: $76.11M
• Dividend Yield: N/A
• Average Volume (3M): 773.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: N/A
• EPS Growth: 39.58%
• Country: US
• Employees: 79
• Sector: Healthcare
• Sector Strength: 62
• Industry: Biotechnology
• EPS (TTM): -1.99
• Shares Outstanding: 71,130,050
• 10 Day Avg. Volume: 885,451
• 30 Day Avg. Volume: 773,472
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.00
• 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: $15.33
• Price Target Upside: 1332.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Ventyx Biosciences faces significant financial challenges typical of early-stage biotech companies with no revenue and negative equity. However, the recent strategic updates and adequate liquidity position provide a positive outlook. Despite bearish technical indicators, the company's potential in NLRP3 inflammasome treatments and robust cash reserves offer long-term growth prospects. Investors must weigh the high risk against the potential transformative impact of its clinical pipeline.

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 Position

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.

Pipeline Progress

Ventyx released guidance regarding its pipeline strategy and provided clinical updates for its portfolio of NLRP3 inhibitors for the treatment of systemic inflammatory conditions and neurodegenerative diseases.

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 Competition

These programs are viewed as high-risk/high-reward given the competitive nature of obesity and that historically, no studies have been positive in Parkinson's disease in late-stage development.

Stock Performance

Shares are down significantly as investors are in 'wait and see' mode on the company's NLRP3 franchise.

Ventyx Biosciences Business Overview & Revenue Model

Company Description

Ventyx Biosciences, Inc., a clinical-stage biopharmaceutical company, develops small molecule product candidates for inflammatory diseases and autoimmune disorders. The company's lead product candidate is VTX958, a tyrosine kinase type 2 inhibitor that is in phase I clinical trials for the treatment of immune-mediated diseases, such as psoriasis, inflammatory bowel disease, psoriatic arthritis, Crohn's disease, and lupus. It also develops VTX002, an oral sphingosine 1 phosphate receptor 1 modulator that is in phase II clinical trials for the treatment of ulcerative colitis; and VTX2735, a peripheral-targeted NOD-like receptor protein 3 (NLRP3) inflammasome inhibitor for the treatment of systemic inflammatory diseases, such as cardiovascular, hepatic, renal, and rheumatologic diseases which is in phase I clinical trials. In addition, the company develops CNS-penetrant NLRP3 inhibitors for the treatment of Alzheimer disease, Parkinson disease, amyotrophic lateral sclerosis, and multiple sclerosis. Ventyx Biosciences, Inc. was incorporated in 2018 and is based in Encinitas, California.

How the Company Makes Money

Ventyx 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-941.00K	-470.00K	-30.00K	0.00
	EBIT
-148.45M	-207.99M	-113.14M	-67.15M	-7.05M
	EBITDA
-148.45M	-207.84M	-107.96M	-67.12M	0.00
	Net Income Common Stockholders
-135.12M	-192.96M	-107.96M	-78.37M	-28.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
217.32M	252.22M	356.61M	286.72M	244.00K
	Total Assets
276.56M	277.69M	371.40M	291.48M	245.00K
	Total Debt
10.79M	12.51M	1.56M	0.00	12.65M
	Net Debt
-16.47M	-39.07M	-63.26M	-70.79M	12.40M
	Total Liabilities
22.52M	33.77M	17.50M	12.28M	30.90M
	Stockholders Equity
254.04M	243.92M	-226.22M	-117.80M	-30.65M
Cash Flow		Free 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
-15.51M	100.94M	-74.93M	-214.37M	0.00
	Financing Cash Flow
122.11M	53.33M	167.77M	323.55M	6.13M

Ventyx Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.07
• 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 VTYX, the sentiment is Negative. The current price of 1.07 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.59, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 23.18 is Positive, neither overbought nor oversold. The STOCH value of 7.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTYX.

Ventyx Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	78 Outperform	$69.34B	16.54	15.95%	0.14%	8.27%	10.35%
GILD	75 Outperform	$139.54B	292.94	2.28%	2.79%	6.16%	-91.54%
BIIB	65 Neutral	$19.33B	11.74	10.36%	―	-1.60%	39.71%
VRTX	64 Neutral	$124.50B	―	-3.15%	―	11.64%	-114.72%
ALNY	55 Neutral	$35.12B	―	-414.62%	―	22.97%	38.54%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
VTYX	36 Underperform	$76.11M	―	-54.27%	―	―	39.58%

Ventyx Biosciences Corporate Events

Ventyx Biosciences Unveils 2025 Pipeline and Clinical Updates

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.