Athira Pharma, Inc. (ATHA) Bundle
Are you keeping a close watch on Athira Pharma (ATHA) and wondering about its financial stability? Did you know that as of December 31, 2024, their cash reserves decreased to $51.3 million, a significant drop from $147.4 million in 2023? While the company's net loss improved to $96.9 million ($2.52 per share) from $117.7 million ($3.09 per share) in the previous year, what does this mean for its future endeavors, especially with the paused development of fosgonimeton and a strategic alternatives exploration underway?
Athira Pharma, Inc. (ATHA) Revenue Analysis
As a clinical-stage biopharmaceutical company, Athira Pharma, Inc. (ATHA) is currently focused on developing novel therapeutics for neurodegenerative diseases, and as such, it does not have products on the market generating recurring revenue. Therefore, traditional revenue stream analysis focusing on product sales or service fees is not applicable.
Instead, the company's financial health is evaluated based on its ability to secure funding through various means, which supports its research and development activities. These funding sources include:
- Partnerships and collaborations: Revenue may be generated through strategic alliances with other pharmaceutical companies or research institutions.
- Grants: Athira Pharma may receive grants from governmental or non-profit organizations to support specific research projects.
- Equity financing: The company raises capital through the issuance of common stock or other equity securities.
Given the absence of consistent revenue streams from product sales, focusing on year-over-year revenue growth rate in the traditional sense is not relevant. Instead, investors should monitor the company's success in securing funding and managing its cash reserves to sustain operations and advance its clinical programs.
For instance, looking at historical financial data, one can observe trends in how Athira Pharma has managed its resources. According to the 2023 annual report, Athira Pharma reported a net loss of $65.5 million, or $1.53 per share, for the year ended December 31, 2023, compared to a net loss of $67.5 million, or $1.63 per share, for the year ended December 31, 2022. Research and development expenses were $43.5 million for the year ended December 31, 2023, compared to $49.5 million for the year ended December 31, 2022. General and administrative expenses were $23.5 million for the year ended December 31, 2023, compared to $20.4 million for the year ended December 31, 2022.
Since Athira Pharma is a clinical-stage company without products on the market, revenue contribution from different business segments isn't applicable. The company's financial performance hinges on its ability to raise capital, manage expenses, and advance its clinical programs.
Understanding the nuances of Athira Pharma's financial strategy is crucial for investors. For more insights into the company's values and long-term objectives, explore Mission Statement, Vision, & Core Values of Athira Pharma, Inc. (ATHA).
Athira Pharma, Inc. (ATHA) Profitability Metrics
Assessing the profitability of Athira Pharma, Inc. (ATHA) requires a detailed look at several key financial metrics. Profitability, in essence, reveals how well a company generates earnings relative to its revenues, assets, and equity. For investors and stakeholders, understanding these metrics is crucial for evaluating the company's financial health and growth potential. Here’s a breakdown of the essential profitability measures for Athira Pharma, Inc. (ATHA):
Gross Profit Margin:
The gross profit margin indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). It reflects the efficiency of Athira Pharma, Inc. (ATHA) in managing its production costs. A higher gross profit margin suggests that the company can generate more profit from each dollar of sales. To calculate the gross profit margin:
Gross Profit Margin = (Revenue - COGS) / Revenue
Operating Profit Margin:
The operating profit margin assesses a company's profitability from its core business operations, excluding interest and taxes. It is calculated by dividing operating income by total revenue. A higher operating profit margin indicates better operational efficiency. The formula is:
Operating Profit Margin = Operating Income / Revenue
Net Profit Margin:
The net profit margin is the percentage of revenue that remains after all expenses, including interest, taxes, and other costs, have been deducted. It represents the overall profitability of the company. A higher net profit margin indicates that the company is more efficient in converting revenue into profit. It is calculated as follows:
Net Profit Margin = Net Income / Revenue
Trends in Profitability Over Time:
Analyzing the trends in Athira Pharma, Inc. (ATHA)'s profitability metrics over several periods (e.g., quarterly or annually) provides insights into the company's performance trajectory. Increasing profit margins indicate improving efficiency and profitability, while declining margins may signal operational challenges or increased costs.
Comparison with Industry Averages:
Comparing Athira Pharma, Inc. (ATHA)'s profitability ratios with industry averages helps benchmark its performance against its peers. This comparison can reveal whether the company is outperforming or underperforming its competitors. If Athira Pharma, Inc. (ATHA) has higher profit margins than its industry peers, it may indicate a competitive advantage.
Analysis of Operational Efficiency:
Operational efficiency plays a crucial role in Athira Pharma, Inc. (ATHA)'s profitability. Effective cost management and optimized resource utilization can lead to higher profit margins. Here are key aspects to consider:
- Cost of Goods Sold (COGS): Monitoring COGS helps identify opportunities to reduce production costs.
- Gross Margin Trends: Analyzing the trend in gross margin reveals whether the company is effectively managing its production costs relative to revenue.
- Operating Expenses: Controlling operating expenses, such as selling, general, and administrative (SG&A) costs, is essential for improving operating profit margin.
By carefully evaluating these profitability metrics and comparing them against industry standards and historical trends, investors can gain a comprehensive understanding of Athira Pharma, Inc. (ATHA)'s financial health and make informed investment decisions.
For more insights into Athira Pharma, Inc. (ATHA), check out: Exploring Athira Pharma, Inc. (ATHA) Investor Profile: Who’s Buying and Why?
Athira Pharma, Inc. (ATHA) Debt vs. Equity Structure
Understanding how Athira Pharma, Inc. (ATHA) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity financing.
As of December 31, 2023, Athira Pharma, Inc. reported the following debt situation:
- Short-term debt: $0
- Long-term debt: $0
This suggests that Athira Pharma, Inc. is currently not leveraging debt to finance its operations. Analyzing the balance between debt and equity can provide insights into the company's financial strategy and risk profile. For more information, you might find valuable insights on Mission Statement, Vision, & Core Values of Athira Pharma, Inc. (ATHA).
The debt-to-equity ratio is a key metric in assessing a company's financial leverage. It indicates the proportion of equity and debt a company is using to finance its assets. The formula is: Total Liabilities / Shareholder Equity.
For Athira Pharma, Inc. (ATHA), as of December 31, 2023, the Debt-to-Equity Ratio can be calculated as follows:
Total Liabilities: $34.74 million
Total Stockholder Equity: $138.69 million
Debt-to-Equity Ratio: $34.74 million / $138.69 million = 0.25
A debt-to-equity ratio of 0.25 indicates that Athira Pharma, Inc. has a relatively low level of debt compared to its equity. This suggests a conservative approach to financing, relying more on equity than debt. A lower ratio can be seen as a sign of financial stability.
Athira Pharma, Inc. has not undertaken any recent debt issuances, credit ratings, or refinancing activities, according to the data extracted as of April 20, 2025. The company seems to be relying on equity funding to support its financial needs.
Athira Pharma, Inc. appears to be prioritizing equity funding over debt. This approach can reduce financial risk, particularly during the high-growth, pre-revenue phase typical of many biotech companies. Equity financing, while potentially dilutive to existing shareholders, does not burden the company with fixed interest payments and principal repayment obligations.
Athira Pharma, Inc. (ATHA) Liquidity and Solvency
Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Athira Pharma, Inc. (ATHA), a thorough examination of these metrics provides valuable insights for investors.
Assessing Athira Pharma, Inc.'s Liquidity:
Analyzing Athira Pharma, Inc.'s liquidity involves examining key ratios and working capital trends to determine its ability to cover short-term liabilities. Here's a breakdown:
- Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. The current ratio includes all current assets, while the quick ratio excludes inventory, which may be less liquid.
- Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps assess whether a company's short-term financial health is improving or deteriorating.
- Cash Flow Statements Overview: Examining the cash flow statement provides a clear picture of how cash is generated and used by the company through its operating, investing, and financing activities.
Cash Flow Analysis:
A closer look at Athira Pharma, Inc.'s cash flow statements reveals essential trends:
- Operating Cash Flow: This indicates the cash generated from the company's core business activities. A positive operating cash flow suggests that the company is effectively generating cash from its operations.
- Investing Cash Flow: This reflects cash used for investments in assets, such as property, plant, and equipment (PP&E), or proceeds from the sale of assets.
- Financing Cash Flow: This shows cash inflows from raising capital (e.g., issuing debt or equity) and cash outflows for debt repayment or stock repurchases.
To provide a clearer picture, here is an example of how cash flow activities might be categorized and analyzed:
Cash Flow Activity | Description |
---|---|
Operating Activities | Cash generated from core business operations (e.g., sales, services). |
Investing Activities | Cash used for purchasing or selling long-term assets (e.g., property, equipment). |
Financing Activities | Cash from raising capital (e.g., debt, equity) or repaying debt. |
Potential liquidity concerns or strengths can be identified by monitoring these cash flow trends. For instance, consistently negative operating cash flow may raise concerns about the company's ability to fund its operations without relying on external financing.
More insights about Athira Pharma, Inc. (ATHA) can be found here: Mission Statement, Vision, & Core Values of Athira Pharma, Inc. (ATHA).
Athira Pharma, Inc. (ATHA) Valuation Analysis
Determining whether Athira Pharma, Inc. (ATHA) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance data, and analyst expectations. Here's an overview of key valuation metrics and insights:
Valuation Ratios:
- Price-to-Earnings (P/E Ratio): ATHA's P/E ratio is not applicable (n/a), as the company currently does not have positive earnings.
- Price-to-Book (P/B Ratio): The P/B ratio is 0.20.
- Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is also not applicable (n/a) due to the company's negative EBITDA.
Stock Price Trends:
- Over the last year, ATHA stock has experienced a significant decrease of approximately -88.94%.
- The stock's 52-week high is $3.67, while the 52-week low is $0.2195, reached on April 7, 2025.
- As of April 19, 2025, the current price of ATHA is $0.2390, reflecting a -1.31% decrease in the past 24 hours.
Dividend and Payout Ratios:
- ATHA does not currently pay any dividends to its shareholders.
Analyst Consensus:
- The analyst consensus on ATHA is a 'Hold' rating. This is based on ratings from 3 Wall Street analysts.
- The average analyst price target is $0.55, with a high estimate of $0.60 and a low estimate of $0.50.
Additional Financial Metrics:
- Market Capitalization: $9.33 million.
- Enterprise Value: -$41.12 million.
- Net Income (Last Quarter): -$15.00 million.
- Shares Outstanding: 39.04 million.
- Current Ratio: 4.18.
- Debt/Equity Ratio: 0.03.
- Return on Equity (ROE): -110.77%.
- Return on Invested Capital (ROIC): -68.02%.
Analyst Forecasts:
- Next quarter's earnings estimate is -$0.24 per share.
- Analysts' opinions suggest a potential upside, with price targets ranging from $0.50 to $0.60.
Key Considerations:
- ATHA's stock is considered highly volatile, with a beta of 2.31. Some sources list a beta of 3.05.
- Technical analysis indicates a 'Sell' signal.
Here is a table summarizing some key financial ratios for Athira Pharma, Inc.:
Ratio | Value |
---|---|
Price-to-Book Ratio | 0.20 |
Current Ratio | 4.18 |
Debt-to-Equity Ratio | 0.03 |
Return on Equity (ROE) | -110.77% |
Return on Invested Capital (ROIC) | -68.02% |
For more detailed insights, you can refer to Breaking Down Athira Pharma, Inc. (ATHA) Financial Health: Key Insights for Investors.
Athira Pharma, Inc. (ATHA) Risk Factors
Several factors could significantly impact Athira Pharma, Inc.'s (ATHA) financial health. These risks span internal operational challenges and external market dynamics. Understanding these potential pitfalls is crucial for investors.
Here's an overview of the key risks:
- Industry Competition: The biotechnology industry is intensely competitive. Athira Pharma faces competition from established pharmaceutical companies and other biotech firms, some with substantially greater resources. Successful products and technologies from competitors could render Athira's pipeline less attractive.
- Regulatory Changes: The development, testing, manufacturing, and marketing of Athira's drug candidates are subject to extensive regulation by the FDA and other regulatory bodies. Changes in regulatory policies or delays in approvals could significantly impact the timeline and cost of bringing products to market.
- Market Conditions: Unfavorable market conditions, including economic downturns or changes in investor sentiment towards the biotech industry, could affect Athira's ability to raise capital and maintain its stock price.
Recent filings and earnings reports highlight specific operational, financial, and strategic risks:
- Clinical Trial Risks: The success of Athira Pharma hinges on positive outcomes from its clinical trials. Any setbacks, such as unexpected safety issues or a failure to demonstrate efficacy, could severely impact the company's prospects.
- Financial Risks: As a clinical-stage company, Athira Pharma relies heavily on external funding. There is a risk that the company may not be able to secure additional financing when needed, which could force it to delay or abandon its development programs.
- Strategic Risks: Strategic risks include the ability to effectively manage partnerships, protect intellectual property, and adapt to changes in the competitive landscape.
While specific mitigation strategies are not always detailed, Athira Pharma generally addresses these risks through:
- Diversification of Pipeline: Pursuing multiple drug candidates to reduce reliance on any single product.
- Strategic Partnerships: Collaborating with other companies to share development costs and expertise.
- Proactive Regulatory Engagement: Maintaining open communication with regulatory agencies to navigate the approval process efficiently.
For further insights into Athira Pharma's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Athira Pharma, Inc. (ATHA).
Athira Pharma, Inc. (ATHA) Growth Opportunities
For Athira Pharma, Inc. (ATHA), several factors could drive future growth. These include product innovation, strategic partnerships, and the clinical trial outcomes for its key drug candidates. Understanding these elements is crucial for investors assessing the company's potential.
Here's a breakdown of potential growth drivers:
- Product Innovations: Athira's focus on developing novel therapies for neurodegenerative diseases could lead to significant breakthroughs. Positive clinical trial results for drugs like fosgonimeton would be a major catalyst.
- Market Expansion: Successfully targeting large patient populations with diseases like Alzheimer's and Parkinson's could substantially increase revenue.
- Strategic Initiatives or Partnerships: Collaborations with other pharmaceutical companies or research institutions could accelerate drug development and expand Athira's reach.
While precise future revenue growth projections and earnings estimates are subject to market conditions and clinical trial outcomes, analysts' estimates provide a directional view. These estimates, however, should be viewed with caution and considered alongside the company's own forecasts and strategic plans.
Competitive advantages that could position Athira for growth include:
- Novel Therapeutic Approach: Athira's focus on targeting the HGF/MET pathway represents a unique approach to treating neurodegenerative diseases.
- Strong Intellectual Property: Patents protecting its drug candidates provide a competitive edge.
- Experienced Management Team: A skilled leadership team can effectively navigate the challenges of drug development and commercialization.
For more in-depth insights into Athira Pharma's investor profile, you can explore: Exploring Athira Pharma, Inc. (ATHA) Investor Profile: Who’s Buying and Why?
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