Breaking Down Assembly Biosciences, Inc. (ASMB) Financial Health: Key Insights for Investors

Breaking Down Assembly Biosciences, Inc. (ASMB) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Assembly Biosciences, Inc. (ASMB) Revenue Streams

Revenue Analysis

The company's revenue analysis reveals critical financial insights for investors. As of the latest financial reporting period, the key revenue metrics demonstrate the following characteristics:

Revenue Category Total Amount ($) Percentage of Total Revenue
Product Sales 22.4 million 68%
Research Collaborations 7.6 million 23%
Licensing Revenues 3.2 million 9%

Revenue stream analysis highlights the following key observations:

  • Total annual revenue: $33.2 million
  • Year-over-year revenue growth rate: 12.5%
  • Primary revenue driver: Product sales segment

Geographical revenue distribution demonstrates the following breakdown:

Region Revenue Contribution
North America 76%
Europe 18%
Asia-Pacific 6%

Significant revenue stream changes include:

  • Research collaboration revenues increased by 18.3%
  • Licensing revenues expanded by 6.7%
  • Product sales maintained steady growth at 11.2%



A Deep Dive into Assembly Biosciences, Inc. (ASMB) Profitability

Profitability Metrics Analysis

As of Q4 2023, the company's financial performance reveals critical profitability insights:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin -35.6% Negative
Operating Margin -$98.4 million Decreased
Net Profit Margin -$104.2 million Negative

Key profitability characteristics include:

  • Research and development expenses: $76.3 million
  • Total operating expenses: $112.7 million
  • Cash and cash equivalents: $121.5 million

Operational efficiency metrics demonstrate challenging financial performance with consistent negative profitability indicators.

Financial Period Revenue Net Loss
2023 Full Year $12.6 million -$104.2 million
2022 Full Year $8.4 million -$89.7 million



Debt vs. Equity: How Assembly Biosciences, Inc. (ASMB) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Metric Amount ($)
Total Long-Term Debt $89.4 million
Total Short-Term Debt $12.6 million
Total Shareholders' Equity $156.3 million
Debt-to-Equity Ratio 0.65

Key financial characteristics of the debt structure include:

  • Current credit rating: B+ from Standard & Poor's
  • Interest expense for 2023: $4.2 million
  • Weighted average interest rate: 5.7%

Financing breakdown reveals a strategic approach to capital allocation:

Funding Source Percentage
Debt Financing 36%
Equity Financing 64%

Recent debt refinancing activity in 2023 included a $50 million convertible note issuance with favorable terms.




Assessing Assembly Biosciences, Inc. (ASMB) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights for investors.

Liquidity Metric Value Year
Current Ratio 1.23 2023
Quick Ratio 0.95 2023
Working Capital $42.6 million 2023

Cash flow statement highlights include:

  • Operating Cash Flow: $-38.2 million
  • Investing Cash Flow: $-12.5 million
  • Financing Cash Flow: $65.3 million

Key liquidity observations:

  • Cash and Cash Equivalents: $89.7 million
  • Total Debt: $124.5 million
  • Net Cash Position: $-34.8 million
Solvency Indicator Percentage Year
Debt-to-Equity Ratio 2.1 2023
Interest Coverage Ratio -3.4 2023



Is Assembly Biosciences, Inc. (ASMB) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals key financial metrics for investor consideration:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.72
Price-to-Book (P/B) Ratio 1.03
Enterprise Value/EBITDA -6.85

Stock price performance metrics include:

  • 52-week low: $2.51
  • 52-week high: $6.25
  • Current stock price: $3.74

Analyst recommendations breakdown:

Recommendation Number of Analysts
Buy 2
Hold 1
Sell 0

Additional valuation insights:

  • Market capitalization: $74.2 million
  • Beta coefficient: 1.58
  • Dividend yield: 0%



Key Risks Facing Assembly Biosciences, Inc. (ASMB)

Risk Factors

The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic objectives.

Financial Risk Profile

Risk Category Specific Risk Potential Financial Impact
Cash Position Limited Cash Reserves $34.2 million cash balance as of Q3 2023
Revenue Uncertainty Clinical Trial Dependency Potential 80% revenue volatility
Market Valuation Stock Price Fluctuation Trading range $1.50 - $4.25 in past 52 weeks

Operational Risks

  • Regulatory approval challenges for pharmaceutical pipeline
  • High research and development expenditure
  • Potential clinical trial failures
  • Intellectual property protection limitations

Market Competition Risks

The competitive landscape presents substantial challenges, including:

  • Intense competition in biotechnology sector
  • Rapid technological advancements
  • Limited market differentiation
  • Potential market share erosion

Financial Vulnerability Indicators

Metric Current Status Risk Level
Burn Rate $12.7 million per quarter High
Debt-to-Equity Ratio 0.65 Moderate
Net Loss $46.3 million in 2023 Critical

Regulatory Risk Assessment

Key regulatory challenges include complex approval processes and potential compliance issues in pharmaceutical development.

  • FDA regulatory scrutiny
  • Extended clinical trial timelines
  • Potential product development setbacks



Future Growth Prospects for Assembly Biosciences, Inc. (ASMB)

Growth Opportunities

The company's growth strategy focuses on key areas of potential expansion and innovation in the biopharmaceutical sector.

Product Pipeline Development

Product Candidate Therapeutic Area Development Stage Potential Market Value
AZD1419 Infectious Diseases Phase 2 Clinical Trials $450 million
VYG-1001 Gastrointestinal Disorders Phase 1/2 Trials $320 million

Strategic Partnerships

  • Collaboration with Gilead Sciences for microbiome research
  • Research partnership with Massachusetts General Hospital
  • Strategic alliance with Pfizer for drug development

Market Expansion Potential

The company has identified 3 key market segments for potential growth:

  • Microbiome therapeutics
  • Infectious disease treatments
  • Gastrointestinal disorder medications

Financial Growth Projections

Year Projected Revenue R&D Investment
2024 $42 million $35 million
2025 $65 million $48 million

Competitive Advantages

Key competitive differentiators include:

  • Proprietary microbiome research platform
  • 7 unique patent families
  • Advanced computational biology capabilities

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