Zentalis Pharmaceuticals (ZNTL) AI Stock Analysis

• Market Cap: $92.64M
• Dividend Yield: N/A
• Average Volume (3M): 864.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: N/A
• EPS Growth: 48.92%
• Country: US
• Employees: 166
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -2.33
• Shares Outstanding: 71,811,510
• 10 Day Avg. Volume: 919,591
• 30 Day Avg. Volume: 864,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.36
• Price to Cash Flow (P/CF): -0.80
• 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: $6.27
• Price Target Upside: 361.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Zentalis Pharmaceuticals struggles with financial performance due to consistent losses and negative cash flows, which significantly impact its overall score. Technical analysis further indicates bearish trends. However, recent positive corporate events related to promising clinical trials provide a glimmer of hope for future growth, slightly offsetting the negative financial and technical indicators.

Positive Factors

Clinical Trials

The pivotal DENALI trial is expected to initiate with improved efficacy and further outperformance versus standard-of-care chemotherapy.

Financial Position

Zentalis ended the quarter with $371.1M in cash, which supports a cash runway into late 2027.

Market Potential

Zentalis estimates that about half of PROC patients exhibit Cyclin E1 overexpression, translating to a potential target population of approximately 21,000 patients in the U.S., leaving azenosertib well-positioned to meet a clear unmet need.

Negative Factors

Clinical Challenges

A discontinuation rate of 21.6%, driven in part by voluntary withdrawals and a prior partial clinical hold, presents an area for potential improvement in future studies.

Market Conditions

Shares are likely to trade in a range given few data catalysts this year that could offer upside.

Stock Performance

ZNTL shares are down 40% year-to-date compared to a 7% decline in the XBI index.

Zentalis Pharmaceuticals Business Overview & Revenue Model

Company Description

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its lead product candidate includes the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase, which is in Phase 2 clinical trial for the treatment of advanced solid tumors; Phase 1/2 clinical trial for the treatment of advanced solid tumors as a monotherapy and in an ongoing Phase 1b clinical trial in combination with chemotherapy in patients with platinum resistant ovarian cancer; and Phase 2 monotherapy trial for a tumor agnostic, predictive biomarker. The company's other lead product candidate includes ZN-c5, an oral selective estrogen receptor degrader that is in a Phase 1/2 clinical trial for the treatment of advanced estrogen receptor-positive, human epidermal growth factor receptor 2-negative, or advanced or metastatic breast cancer. In addition, it is involved in developing ZN-d5, a selective inhibitor of B-cell lymphoma 2 that is in a Phase 1 clinical trial for the treatment of non-Hodgkin's lymphoma and acute myelogenous leukemia; and ZN-e4, an irreversible inhibitor of mutant epidermal growth factor receptor, which is in Phase 1/2 clinical trial for the treatment of advanced non-small cell lung cancer. Further, the company is developing BCL-xL heterobifunctional degraders based on E3 ligases not expressed in platelets, allowing for the avoidance of dose-limiting thrombocytopenia associated with BCL-xL inhibitors. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Mayo Foundation for Medical Education and Research; SciClone Pharmaceuticals International (Cayman) Development Ltd.; Pfizer, Inc.; Eli Lilly and Company; GlaxoSmithKline, and Zentera Therapeutics (Cayman), Ltd. The company was incorporated in 2014 and is based in New York, New York.

How the Company Makes Money

Zentalis Pharmaceuticals generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company raises funds through public offerings, private placements, and collaborations with other pharmaceutical firms and research institutions. Zentalis may engage in strategic partnerships or licensing agreements that provide upfront payments, milestone payments, and royalties based on the successful development and commercialization of its therapies. Additionally, the company might receive grants or funding from governmental and non-governmental organizations to support its research and development efforts. As a clinical-stage company, Zentalis is focused on advancing its pipeline through clinical trials, which is crucial for achieving regulatory approval and eventual market entry, thus unlocking potential revenue streams from sales and partnerships.

Zentalis Pharmaceuticals Financial Statement Overview

Summary

Zentalis Pharmaceuticals is in a challenging financial position with consistent operating losses and negative cash flows. While the balance sheet is relatively stable with low leverage, the company must address its profitability issues to improve its financial health.

Income Statement

Zentalis Pharmaceuticals shows a lack of revenue over multiple years, recently generating revenue in 2024. The company has been consistently operating at a loss with negative EBIT and EBITDA margins, reflecting ongoing financial challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a reasonable equity base and low leverage, with a debt-to-equity ratio remaining manageable. However, the return on equity is negative due to ongoing losses, indicating a need to improve profitability.

Cash Flow

Cash flow analysis indicates persistent negative operating and free cash flow, driven by substantial operating losses. The company has relied on financing activities to sustain operations, which may not be sustainable long-term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
67.42M	0.00	0.00	0.00	0.00
	Gross Profit
67.42M	-1.39M	-1.43M	-544.00K	-160.00K
	EBIT
-191.19M	-248.99M	-227.29M	-216.54M	-118.79M
	EBITDA
-186.17M	-275.50M	-219.87M	-164.01M	-117.94M
	Net Income Common Stockholders
-165.84M	-292.19M	-220.83M	-164.26M	-118.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
351.91M	482.92M	437.37M	339.89M	338.50M
	Total Assets
430.34M	551.69M	539.31M	454.51M	365.56M
	Total Debt
39.58M	43.15M	45.17M	45.91M	2.00M
	Net Debt
5.68M	15.11M	2.10M	-13.80M	-52.95M
	Total Liabilities
93.15M	114.30M	105.29M	90.03M	32.18M
	Stockholders Equity
337.19M	437.28M	434.02M	364.48M	333.38M
Cash Flow		Free Cash Flow
-171.08M	-208.41M	-166.30M	-160.20M	-87.58M
	Operating Cash Flow
-170.86M	-207.82M	-163.75M	-154.09M	-86.83M
	Investing Cash Flow
176.56M	-44.46M	-114.18M	-18.11M	-284.83M
	Financing Cash Flow
108.00K	237.30M	261.04M	178.52M	360.44M

Zentalis Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZNTL, the sentiment is Negative. The current price of 1.36 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.79, and below the 200-day MA of 2.91, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZNTL.

Zentalis Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$5.14B	3.10	-40.94%	2.95%	17.94%	2.00%
ZNTL	44 Neutral	$92.64M	―	-42.83%	―	―	48.92%
ELUT	44 Neutral	$94.81M	―	149.62%	―	-31.04%	11.34%
CCCC	41 Neutral	$88.74M	―	-45.58%	―	71.44%	43.22%
KYTX	41 Neutral	$80.39M	―	-80.74%	―	―	―
CLYM	38 Underperform	$82.99M	―	-46.26%	―	―	-61.95%
VOR	33 Underperform	$81.15M	―	-94.52%	―	―	2.98%

Zentalis Pharmaceuticals Corporate Events

Zentalis Highlights Promising Azenosertib Data at SGO 2025

Zentalis Pharmaceuticals presented updated clinical data at the Society of Gynecologic Oncology 2025 Annual Meeting, highlighting the potential of azenosertib in treating platinum-resistant ovarian cancer (PROC). The data from the DENALI Part 1b clinical trial showed a median duration of response of 6.3 months and an objective response rate of approximately 35% in response-evaluable patients. The company plans to initiate Part 2 of the trial in the first half of 2025, with topline data expected by the end of 2026, potentially supporting accelerated approval. The presentation also emphasized the role of Cyclin E1 protein overexpression as a predictive biomarker for identifying patients who could benefit from azenosertib.

Zentalis Pharmaceuticals Announces New Study for Azenosertib

On January 29, 2025, Zentalis Pharmaceuticals announced the development plan for their WEE1 inhibitor product candidate, azenosertib, focusing on patients with Cyclin E1-positive platinum-resistant ovarian cancer (PROC). The company, aligned with the FDA, intends to initiate the DENALI Part 2 study in the first half of 2025, with the potential for accelerated approval. Clinical results highlighted meaningful azenosertib activity, showing an objective response rate (ORR) of approximately 35% in heavily-pretreated patients, with a median duration of response of about 5.5 months. The safety profile was consistent with previous findings, showing no new safety signals.

Zentalis Pharmaceuticals Restructures to Advance Oncology Product

On January 22, 2025, Zentalis Pharmaceuticals announced a strategic restructuring, including a workforce reduction of approximately 40%, to support the late-stage development of its WEE1 inhibitor product candidate, azenosertib. The restructuring aims to extend the company’s cash runway beyond the anticipated 2026 data readout from the DENALI Part 2 study. The company expects to incur one-time costs of approximately $7.0–8.0 million due to the workforce reduction, which is expected to be largely completed by the second quarter of 2025. This move is intended to efficiently allocate resources to advance azenosertib’s development and potentially bring it to market for patients with gynecological malignancies, thereby solidifying Zentalis’ position in the oncology therapeutics market.