BioAtla, Inc. (BCAB) Bundle
Understanding BioAtla, Inc. (BCAB) Revenue Streams
Understanding BioAtla, Inc.’s Revenue Streams
BioAtla, Inc. primarily generates revenue through collaboration agreements and licensing arrangements. In September 2024, the company recognized $11.0 million in revenue from its Context License Agreement, marking a significant increase compared to $0 revenue during the same period in 2023.
Year-over-Year Revenue Growth Rate
For the nine months ended September 30, 2024, BioAtla reported collaboration and other revenue of $11.0 million, a substantial increase from $0 for the nine months ended September 30, 2023. This represents a year-over-year growth rate of 100% in revenue due to the new licensing agreement.
Contribution of Different Business Segments to Overall Revenue
As of September 30, 2024, the entire revenue of $11.0 million was derived from the collaboration and licensing segment. The company has not generated any product revenue to date and does not expect to do so in the near future.
Analysis of Significant Changes in Revenue Streams
The major change in revenue streams for BioAtla in 2024 was the introduction of the Context License Agreement. The revenue recognized in 2024 is the first instance of revenue generation from licensing since the company’s inception. Prior to this agreement, BioAtla had recorded no revenue from product sales or licensing in the preceding periods.
| Period | Collaboration and Other Revenue | Year-over-Year Change |
|---|---|---|
| Three Months Ended September 30, 2024 | $11.0 million | — |
| Three Months Ended September 30, 2023 | $0 | — |
| Nine Months Ended September 30, 2024 | $11.0 million | — |
| Nine Months Ended September 30, 2023 | $0 | — |
Overall, the company’s revenue generation has transitioned from entirely non-existent to a promising start with the recent licensing agreement, highlighting a pivotal moment in its financial trajectory.
A Deep Dive into BioAtla, Inc. (BCAB) Profitability
Profitability Metrics
For the nine months ended September 30, 2024, the company reported a net loss of $54.9 million, a decrease from a net loss of $96.5 million for the same period in 2023. The net loss per common share, basic and diluted, was $1.14 for the nine months ended September 30, 2024, compared to $2.02 for the same period in 2023.
The following table summarizes the profitability metrics for the company over the recent periods:
| Period | Net Loss (in thousands) | Net Loss per Share | Operating Loss (in thousands) | Operating Profit Margin |
|---|---|---|---|---|
| 3 Months Ended September 30, 2024 | $10,586 | $0.22 | $11,270 | -50.5% |
| 3 Months Ended September 30, 2023 | $33,325 | $0.70 | $35,020 | -100.0% |
| 9 Months Ended September 30, 2024 | $54,892 | $1.14 | $57,699 | -84.0% |
| 9 Months Ended September 30, 2023 | $96,537 | $2.02 | $101,151 | -100.0% |
The operating expenses for the nine months ended September 30, 2024, were $68.7 million, a significant decrease from $101.2 million in the same period of 2023. The decrease was primarily attributed to lower research and development costs, which were $51.4 million in 2024 compared to $81.1 million in 2023.
Operating profit margin for the nine months ended September 30, 2024, was calculated as follows:
- Operating Loss: $57.7 million
- Total Revenue: $11.0 million
- Operating Profit Margin: -84.0%
Research and development expenses have shown a downward trend, decreasing from $81.1 million for the nine months ended September 30, 2023, to $51.4 million for the same period in 2024. This is indicative of improved operational efficiency and cost management practices within the organization.
General and administrative expenses were $17.3 million for the nine months ended September 30, 2024, down from $20.1 million in 2023, reflecting a continued focus on cost control.
The company had an accumulated deficit of $471.2 million as of September 30, 2024, indicating the extent of historical losses incurred.
Overall, while the company continues to operate at a loss, the trends in profitability metrics suggest a reduction in losses and an improvement in operational efficiency, which could be beneficial indicators for future financial health and investor confidence.
Debt vs. Equity: How BioAtla, Inc. (BCAB) Finances Its Growth
Debt vs. Equity: How BioAtla, Inc. Finances Its Growth
As of September 30, 2024, BioAtla, Inc. reported total liabilities amounting to $39.3 million, which includes current liabilities of $19.5 million. The breakdown of current liabilities shows accounts payable and accrued expenses at $18.2 million and operating lease liabilities at $1.3 million.
In terms of equity, the company's total stockholders' equity stood at $22.97 million as of the same date. The accumulated deficit reached $471.2 million, indicating significant historical losses.
Debt-to-Equity Ratio and Comparison
The debt-to-equity ratio for BioAtla, Inc. can be calculated as follows:
Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity
Substituting the values, we get:
Debt-to-Equity Ratio = $39.3 million / $22.97 million = 1.71
This ratio of 1.71 suggests that the company has $1.71 of debt for every $1 of equity, indicating a higher reliance on debt financing compared to equity. This is above the industry average for biotechnology firms, which typically ranges from 0.5 to 1.5.
Recent Debt Issuances and Credit Ratings
There are no recent debt issuances reported for BioAtla as of September 30, 2024. The company has primarily financed its operations through equity offerings and collaborations. However, the company has entered into an Open Market Sale Agreement allowing it to sell shares for gross proceeds of up to $100 million.
Balancing Debt Financing and Equity Funding
BioAtla has opted for a strategy that heavily relies on equity financing rather than accumulating debt. This is evident from its significant cash and cash equivalents of $56.5 million as of September 30, 2024, which are expected to support operations for at least the next twelve months. The company has experienced cumulative operating losses and anticipates continued losses, which necessitates careful management of its capital structure.
| Metric | Amount |
|---|---|
| Total Liabilities | $39.3 million |
| Current Liabilities | $19.5 million |
| Accounts Payable and Accrued Expenses | $18.2 million |
| Operating Lease Liabilities | $1.3 million |
| Total Stockholders' Equity | $22.97 million |
| Accumulated Deficit | $471.2 million |
| Debt-to-Equity Ratio | 1.71 |
| Cash and Cash Equivalents | $56.5 million |
| Open Market Sale Agreement | $100 million |
Assessing BioAtla, Inc. (BCAB) Liquidity
Assessing Liquidity and Solvency
Current and Quick Ratios
As of September 30, 2024, the current assets stand at $60.6 million, while current liabilities are $19.5 million. This results in a current ratio of approximately 3.10, indicating a strong liquidity position to cover short-term obligations.
The quick ratio, which excludes inventory from current assets, remains high as well, given that the company has minimal inventory. Thus, the quick ratio is effectively similar to the current ratio at 3.10.
Working Capital Trends
Working capital, defined as current assets minus current liabilities, is calculated as follows:
Working Capital = Current Assets - Current Liabilities
Working Capital = $60.6 million - $19.5 million = $41.1 million
This figure of $41.1 million reflects a significant buffer for operational needs, indicating positive working capital trends over time.
Cash Flow Statements Overview
For the nine months ended September 30, 2024, the cash flow from operating activities reports a net cash outflow of $55.2 million, compared to a net outflow of $74.1 million for the same period in 2023. This reduction in cash outflow indicates improved cash management.
Cash flows from investing activities show no significant cash outflows, with $0 recorded for purchases of property and equipment in 2024, compared to $90,000 in 2023.
In financing activities, there were proceeds from the Employee Stock Purchase Plan amounting to $244,000 for 2024, a slight increase from $187,000 in 2023.
Potential Liquidity Concerns or Strengths
As of September 30, 2024, cash and cash equivalents are reported at $56.5 million. This is expected to fund operations for at least the next twelve months based on current operating plans. However, the company has accumulated a deficit of $471.2 million, which poses long-term liquidity concerns if significant revenue generation does not commence soon.
| Financial Metric | Value |
|---|---|
| Current Assets | $60.6 million |
| Current Liabilities | $19.5 million |
| Current Ratio | 3.10 |
| Quick Ratio | 3.10 |
| Working Capital | $41.1 million |
| Cash Flow from Operating Activities (2024) | $(55.2 million) |
| Cash Flow from Operating Activities (2023) | $(74.1 million) |
| Cash and Cash Equivalents | $56.5 million |
| Accumulated Deficit | $(471.2 million) |
Is BioAtla, Inc. (BCAB) Overvalued or Undervalued?
Valuation Analysis
As of September 30, 2024, the price-to-earnings (P/E) ratio is not applicable due to the company’s ongoing net losses. The net loss for the nine months ended September 30, 2024, was $54.9 million, compared to $96.5 million for the same period in 2023. The P/E ratio is thus not calculable as there are no earnings to report.
The price-to-book (P/B) ratio is calculated using the total stockholders' equity of $22.968 million as of September 30, 2024, against the number of shares outstanding, which is 48,345,533. The book value per share is approximately $0.48. The stock is trading at approximately $2.48 per share, resulting in a P/B ratio of approximately 5.17.
The enterprise value-to-EBITDA (EV/EBITDA) ratio is similarly challenging to calculate due to the lack of positive EBITDA, as the company reported a loss from operations of $57.7 million for the nine months ended September 30, 2024. Consequently, the EV/EBITDA ratio is not applicable.
Over the last 12 months, the stock price has shown significant volatility. The stock price was approximately $3.00 in September 2023, reaching a low of around $1.50 in January 2024 before recovering to approximately $2.48 by September 2024.
As of September 30, 2024, the company does not pay dividends, and thus there are no dividend yield or payout ratios to report.
Analyst consensus on the stock valuation currently leans towards a cautious outlook, with most analysts rating it as a hold. The ongoing development programs and potential future collaborations are seen as critical factors in determining future performance.
| Metric | Value |
|---|---|
| Net Loss (9 months ended September 30, 2024) | $54.9 million |
| Net Loss (9 months ended September 30, 2023) | $96.5 million |
| Price-to-Book Ratio | 5.17 |
| Book Value per Share | $0.48 |
| Stock Price (September 2023) | $3.00 |
| Stock Price (January 2024) | $1.50 |
| Current Stock Price (September 2024) | $2.48 |
| Analyst Consensus Rating | Hold |
Key Risks Facing BioAtla, Inc. (BCAB)
Key Risks Facing BioAtla, Inc.
BioAtla, Inc. faces a variety of risks that could significantly impact its financial health and operational performance. Below are the primary internal and external risk factors identified:
Industry Competition
The biopharmaceutical industry is characterized by intense competition, with numerous companies developing similar therapeutic approaches. The competition includes established pharmaceutical companies and emerging biotech firms, which may have more resources and established market presence. This competitive landscape poses a risk to BioAtla's market share and pricing strategies.
Regulatory Risks
BioAtla must navigate a complex regulatory environment that includes the U.S. Food and Drug Administration (FDA) and other international regulatory bodies. The success of its product candidates depends on obtaining necessary approvals, which may require extensive clinical trials. Delays or failures in securing these approvals could adversely affect the company's ability to commercialize its products.
Financial and Operational Risks
The company has incurred significant losses over the years, with net losses reported at $54.9 million and $96.5 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, BioAtla reported an accumulated deficit of $471.2 million. The ongoing requirement for substantial capital to fund research and development activities presents a financial risk. The company's cash and cash equivalents stood at $56.5 million as of the same date, which is expected to be sufficient for operations for at least twelve months.
Market Conditions
Market volatility and economic conditions can impact the company's ability to raise funds through equity or debt financing. Unforeseen economic downturns can lead to reduced investor confidence and lower capital availability, which may hinder BioAtla's development initiatives.
Operational Challenges
BioAtla's operations may be affected by challenges related to clinical trial design, execution, and patient enrollment. For instance, delays in the commencement and completion of clinical trials could lead to increased costs and hinder timely regulatory approval. Furthermore, the reliance on third-party contractors for research and clinical trials introduces additional risks related to performance and compliance.
Macroeconomic Factors
The company acknowledges that macroeconomic factors, including inflation, could affect operational costs. Vendors have already begun passing on price increases, which could further strain financial resources.
Mitigation Strategies
To address these risks, BioAtla has implemented several strategies:
- Capital Management: The company is actively exploring various funding avenues, including public and private equity offerings, to ensure sufficient capital for ongoing projects.
- Clinical Trial Optimization: Efforts are being made to streamline clinical trial processes to enhance efficiency and reduce costs.
- Regulatory Engagement: Continuous engagement with regulatory bodies to ensure compliance and to facilitate the approval process for its product candidates.
Research and Development Expenses
The following table summarizes the research and development expenses incurred for the nine months ended September 30, 2024 and 2023:
| Program | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Mecbotamab vedotin, BA3011 | $11,603 | $17,759 | $(6,156) |
| Ozuriftamab vedotin, BA3021 | $7,157 | $10,713 | $(3,556) |
| Evalstotug, BA3071 | $7,150 | $13,302 | $(6,152) |
| BA3182 (CAB EpCAM x CAB CD3) | $3,728 | $3,221 | $507 |
| Other CAB Programs | $5,873 | $19,396 | $(13,523) |
| Total R&D Expenses | $35,511 | $64,391 | $(28,880) |
Overall, the financial health of the company is heavily influenced by these risk factors, and effective management of these risks is crucial for its long-term viability and success in the biopharmaceutical industry.
Future Growth Prospects for BioAtla, Inc. (BCAB)
Future Growth Prospects for BioAtla, Inc.
Analysis of Key Growth Drivers
BioAtla, Inc. is positioned for significant growth driven by various factors, including product innovations, market expansions, and collaborations. The company has developed a proprietary platform for creating conditionally active biologics (CABs) targeting solid tumor cancers, which is a key differentiator in the biopharmaceutical industry.
As of September 30, 2024, BioAtla reported collaboration and other revenue of $11 million, a significant increase compared to $0 for the same period in 2023. This revenue is primarily attributed to the Context License Agreement, which demonstrates the potential of their licensing strategy to drive future income.
Future Revenue Growth Projections and Earnings Estimates
Future revenue growth is projected to be influenced by ongoing clinical trials and product approvals. The company has incurred net losses of $54.9 million for the nine months ended September 30, 2024, compared to $96.5 million for the same period in 2023, indicating a narrowing loss which may reflect improved operational efficiency.
The anticipated revenue from product sales remains uncertain, as the company does not expect to generate meaningful revenue for the foreseeable future. However, successful development and commercialization of their lead products could significantly alter this outlook.
Strategic Initiatives and Partnerships
Strategic partnerships are crucial for BioAtla's growth. In September 2024, the company entered into a Global Transaction Agreement with Himalaya Therapeutics, which grants BioAtla an exclusive license for certain products. This agreement is expected to enhance their market presence and facilitate further clinical development.
Competitive Advantages
BioAtla's competitive advantages stem from its innovative CAB technology, which allows for targeted therapy that minimizes damage to healthy tissues. This technology has positioned the company favorably against competitors in the oncology space. The company’s strong intellectual property portfolio further strengthens its market position.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Collaboration and Other Revenue | $11 million | $0 | $11 million |
| Net Loss | $54.9 million | $96.5 million | Improvement of $41.6 million |
| Cash and Cash Equivalents | $56.5 million | $141.3 million | Decrease of $84.8 million |
With a focus on advancing its clinical trials and leveraging strategic partnerships, BioAtla aims to enhance its market position and unlock new revenue streams in the coming years.
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Updated on 16 Nov 2024
Resources:
- BioAtla, Inc. (BCAB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BioAtla, Inc. (BCAB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BioAtla, Inc. (BCAB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.