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Whitehawk Therapeutics (WHWK)
NASDAQ:WHWK
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Whitehawk Therapeutics
(NASDAQ:WHWK)
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Rating:56Neutral
Price Target:
$2.50
▼(-9.09% Downside)
The overall stock score for Whitehawk Therapeutics is primarily impacted by its financial performance challenges, including persistent losses and negative cash flows. Technical analysis shows a positive price trend, but momentum is weak. The valuation is reasonable, but the lack of a dividend yield may limit appeal. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Strategic Partnerships
The collaboration with Tempus AI enhances Whitehawk's research capabilities and supports its oncology pipeline, potentially leading to innovative therapies and expanded market reach.
Balance Sheet Health
A strong equity position with minimal leverage provides financial stability, allowing Whitehawk to invest in R&D and weather financial challenges without excessive debt burden.
Revenue Growth
Consistent revenue growth indicates expanding market reach and product adoption, which is crucial for long-term sustainability and competitiveness in the biotech industry.
Negative Factors
Profitability Challenges
Ongoing profitability challenges suggest the need for strategic adjustments to improve cost management and operational efficiency, impacting long-term financial health.
Cash Flow Issues
Negative cash flow indicates insufficient cash generation from operations, which can limit the company's ability to fund R&D and strategic initiatives without external financing.
Operational Losses
Sustained operational losses highlight the need for improved efficiency and cost control to achieve profitability and ensure long-term viability in the competitive biotech sector.
Whitehawk Therapeutics (WHWK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$121.12M
Dividend YieldN/A
Average Volume (3M)3.35M
Price to Earnings (P/E)20.3
Beta (1Y)0.78
Revenue Growth-42.62%
EPS GrowthN/A
CountryUS
Employees40
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.26
Shares Outstanding47,128,360
10 Day Avg. Volume9,835,549
30 Day Avg. Volume3,352,856
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)1.63
Price to Sales (P/S)3.29
P/FCF Ratio-1.40
Enterprise Value/Market Cap-0.40
Enterprise Value/Revenue-2.22
Enterprise Value/Gross Profit9.41
Enterprise Value/Ebitda0.50
Forecast
1Y Price Target
$7.00Price Target Upside154.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Whitehawk Therapeutics Business Overview & Revenue Model
Company DescriptionWhitehawk Therapeutics Inc operates as a clinical-stage biopharmaceutical company. The Company develops precision therapies for genetically-defined cancers.
How the Company Makes MoneyWhitehawk Therapeutics generates revenue primarily through strategic partnerships and collaborations with larger pharmaceutical companies, which often involve licensing agreements for its proprietary drug candidates. The company may also earn income from research and development grants, as well as potential milestone payments tied to the achievement of specific development and regulatory goals. Additionally, if successful, Whitehawk Therapeutics could benefit from royalties on sales of its therapies once they are commercialized, contributing to its overall revenue stream.
Whitehawk Therapeutics Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant strategic transformations, a promising pipeline of ADC therapies, and strong financial positioning. However, there are concerns about increased R&D expenses and net losses, which are common in early biotech transitions.Q4-2024 Updates
Positive Updates
Transformation and Strategic Transactions
Whitehawk Therapeutics was launched from Aadi Biosciences, including in-licensing 3 ADCs from Wuxi Biologics, divestiture of FYARRO to Kaken Pharmaceuticals, and $100 million pipe financing, approved by stockholders.
Advanced ADC Platform
Whitehawk is rapidly progressing a multi-asset portfolio of advanced ADC therapy, leveraging a platform with minimal off-target toxicity, greater stability, and higher therapeutic index compared to first-generation predecessors.
Financial Position
Ended 2024 with $47.2 million in cash and expect $170-$180 million after transactions, funding operations into 2028.
FYARRO Sales Growth
FYARRO net product sales were $7.2 million for Q4, representing 14% growth over the prior year quarter. Full-year sales were $26 million, an increase of 7% over 2023.
Negative Updates
Increased R&D Expenses
Research and development expenses for Q4 increased to $14.3 million compared to $12.8 million in the prior year quarter, primarily due to in-process R&D expenses related to the acquired ADC programs.
Net Loss
Net loss for the fourth quarter was $18.3 million compared to $16.3 million in the fourth quarter of 2023. Net loss for the year was $63.7 million compared to $65.8 million in the prior year.
Company Guidance
In the earnings call for the fourth quarter and full year 2024, Whitehawk Therapeutics provided guidance on their transformative shift from Aadi Biosciences to an ADC-focused company. The key metrics highlighted include a $100 million PIPE financing and the divestiture of FYARRO, which resulted in a financial position of $170 million to $180 million in cash and equivalents, expected to fund operations into 2028. The company reported FYARRO net product sales of $7.2 million for the fourth quarter, marking a 14% increase from the previous year, and $26 million for the full year, a 7% rise from 2023. Research and development expenses increased to $14.3 million for the quarter and $51 million for the year, primarily due to ADC program acquisitions. Whitehawk plans to file three Investigational New Drug (IND) applications within 15 months for their ADC candidates, targeting PTK7, MUC16, and SEZ6, with anticipated Phase 1 trials in several high-potential cancer indications.Whitehawk Therapeutics Financial Statement Overview
Summary
Whitehawk Therapeutics is facing significant financial challenges, with persistent losses and negative cash flows. While the company has shown some revenue growth, its profitability metrics are concerning, and it needs to address its cost structure and operational efficiency. The balance sheet is relatively strong with low leverage, but the lack of profitability and cash flow generation are critical areas that require attention to ensure long-term sustainability and growth.Income Statement
Whitehawk Therapeutics has shown a consistent increase in revenue over the years, with a revenue growth rate of 6.7% from 2023 to 2024. However, the company is struggling with negative gross profit margins and net profit margins, indicating that costs are significantly outweighing revenue. The EBIT and EBITDA margins are also negative, reflecting ongoing operational losses. These factors suggest financial instability and a need for strategic adjustments to improve profitability.Balance Sheet
The company's balance sheet shows a strong equity position with a high equity ratio of 74.6% in 2024, indicating financial stability in terms of asset financing. However, the debt-to-equity ratio is low at 0.02, suggesting minimal leverage, which can be a double-edged sword in terms of growth potential. The return on equity is negative due to ongoing net losses, highlighting the challenge of generating returns for shareholders.Cash Flow
Whitehawk Therapeutics is experiencing negative free cash flow, although there was a slight improvement from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net losses. The free cash flow to net income ratio is also negative, underscoring the company's cash flow challenges and the need for improved cash management strategies.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.60M | 25.98M | 24.35M | 15.22M | 1.12M | 14.58M |
| Gross Profit | -5.10M | -28.07M | -27.38M | -18.78M | -18.55M | -428.00K |
| EBITDA | -96.72M | -64.63M | -71.76M | -58.80M | -36.96M | -2.54M |
| Net Income | -10.42M | -63.69M | -65.77M | -60.51M | -110.09M | -3.48M |
Balance Sheet | ||||||
| Total Assets | 180.82M | 70.32M | 132.42M | 184.24M | 157.91M | 18.82M |
| Cash, Cash Equivalents and Short-Term Investments | 177.20M | 47.24M | 108.84M | 172.56M | 148.99M | 4.46M |
| Total Debt | 0.00 | 833.00K | 1.27M | 1.66M | 605.00K | 10.26M |
| Total Liabilities | 8.76M | 17.84M | 27.23M | 25.86M | 21.50M | 31.26M |
| Stockholders Equity | 172.07M | 52.48M | 105.19M | 158.38M | 136.41M | -12.43M |
Cash Flow | ||||||
| Free Cash Flow | -96.49M | -61.20M | -63.63M | -50.08M | -22.47M | -12.70M |
| Operating Cash Flow | -95.56M | -59.55M | -59.66M | -49.64M | -22.42M | -12.70M |
| Investing Cash Flow | 104.89M | 25.20M | 83.21M | -132.89M | 25.15M | 0.00 |
| Financing Cash Flow | 94.40M | 130.00K | 326.00K | 72.62M | 141.80M | 1.19M |
Whitehawk Therapeutics Technical Analysis
Positive
2.75
Price Trends
2.37
Positive
2.20
Positive
1.98
Positive
Market Momentum
0.08
Negative
60.35
Neutral
70.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHWK, the sentiment is Positive. The current price of 2.75 is above the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.37, and above the 200-day MA of 1.98, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 70.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHWK.
Whitehawk Therapeutics Risk Analysis
Whitehawk Therapeutics disclosed 101 risk factors in its most recent earnings report. Whitehawk Therapeutics 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
Whitehawk Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $136.52M | 3.38 | 24.38% | ― | ― | 814.20% | |
56 Neutral | $121.12M | 20.25 | -13.82% | ― | -42.62% | ― | |
56 Neutral | $136.90M | -5.36 | -33.68% | ― | ― | 69.30% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $113.23M | -1.45 | -81.13% | ― | -9.70% | 23.23% | |
45 Neutral | $83.27M | -0.96 | -167.93% | ― | -90.18% | -17.93% |
* Healthcare Sector Average
WHWK
Whitehawk Therapeutics
2.75
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-8.33%
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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.