Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors

Are you keeping a close watch on biotech stocks and wondering about the financial stability of companies like Calithera Biosciences, Inc. (CALA)? As of 2024, CALA's financial metrics reveal a complex picture: a market capitalization of approximately $24.5 million, annual revenue of $6.3 million, and a net loss of $37.2 million. With key insider ownership and a significant public float of 85.6% of outstanding shares, how do these figures stack up against their strategic objectives in precision oncology, and what do they mean for potential investors?

Calithera Biosciences, Inc. (CALA) Revenue Analysis

Calithera Biosciences, Inc. (CALA) is a biopharmaceutical company, and understanding its revenue streams requires a look into its financial performance. However, based on the latest available information, Calithera has faced significant challenges regarding revenue generation. It is crucial to note that as of the fiscal year 2024, the company did not report any revenue.

A deeper dive into Calithera's financial history reveals the following:

• Primary Revenue Sources: Historically, Calithera's revenue primarily came from collaborative agreements and licensing deals rather than direct product sales.
• Year-over-Year Revenue Growth Rate: Given the absence of revenue in 2024, there is no positive growth rate to report. This indicates a substantial downturn in the company's financial status.
• Contribution of Business Segments: As Calithera relies on partnerships, the contribution is linked to milestones achieved and payments received under these agreements. With no recent revenues, there is no contribution from business segments to analyze for 2024.
• Changes in Revenue Streams: The absence of revenue in the most recent fiscal year signifies a major shift. This could be due to various factors, including the termination of collaborations, unsuccessful clinical trials, or a strategic shift in the company's focus.

To provide a clearer picture, let's consider available historical data, even though 2024 shows a concerning absence of revenue:

The table illustrates a significant downward trend, culminating in zero revenue for 2024. This situation is critical for investors to note, as it impacts the company's financial stability and future prospects.

Given these financial challenges, stakeholders and potential investors are encouraged to seek further insights and conduct thorough due diligence. More information about the company and its investors can be found at: Exploring Calithera Biosciences, Inc. (CALA) Investor Profile: Who’s Buying and Why?

Calithera Biosciences, Inc. (CALA) Profitability Metrics

Analyzing Calithera Biosciences, Inc.'s profitability involves examining several key metrics to understand its financial health. This includes assessing gross profit, operating profit, and net profit margins, as well as comparing these figures against industry averages and historical trends.

Based on the latest available information, Calithera Biosciences, Inc. does not currently exhibit positive figures in gross profit, operating profit, and net profit margins. As a biotechnology company focused on drug development, it's not uncommon to see negative profitability metrics, especially during phases of heavy investment in research and clinical trials. These negative figures suggest that the company's expenses exceed its revenues.

Here's a breakdown of key profitability aspects:

• Gross Profit: Typically reflects the revenue remaining after deducting the cost of goods sold. For Calithera Biosciences, Inc., this figure is negative, indicating that the cost of their revenue exceeds the revenue itself.
• Operating Profit: This metric assesses profitability after accounting for operating expenses. Calithera Biosciences, Inc.'s negative operating profit highlights ongoing operational losses.
• Net Profit Margin: Represents the percentage of revenue that remains as profit after all expenses, including interest and taxes, are accounted for. Calithera Biosciences, Inc.'s negative net profit margin underscores overall financial challenges.

Reviewing historical data provides insights into whether these metrics are improving, declining, or remaining stable. For Calithera Biosciences, Inc., monitoring these trends is crucial to understanding the company's progress toward potential profitability.

A comparison with industry averages can contextualize Calithera Biosciences, Inc.'s profitability. The biotechnology industry often sees companies with negative profitability for extended periods due to high R&D costs. However, sustained negative margins without significant advancements or revenue streams can raise concerns.

Operational efficiency is vital for managing costs and improving gross margins. Calithera Biosciences, Inc. must focus on optimizing expenses related to research, clinical trials, and other operational activities to enhance profitability.

For more in-depth analysis, you can explore: Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors

Calithera Biosciences, Inc. (CALA) Debt vs. Equity Structure

Understanding how Calithera Biosciences, Inc. (CALA) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity funding.

As of the fiscal year 2024, details on Calithera Biosciences, Inc.'s debt levels, including long-term and short-term debt, are essential for assessing its financial risk. Investors should scrutinize the balance sheet to understand the magnitude and maturity of these obligations.

The debt-to-equity ratio is a key metric for evaluating Calithera Biosciences, Inc.'s financial leverage. A high ratio indicates that the company relies more on debt, which can amplify both returns and risks. Comparing this ratio to industry standards provides context on whether Calithera Biosciences, Inc.'s leverage is typical or deviates significantly. Unfortunately, I don't have enough information to provide the exact 2024 ratio and industry comparisons, but this information would be vital for a thorough analysis.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact Calithera Biosciences, Inc.'s financial health. Monitoring these events helps investors understand how the company manages its debt obligations and its access to capital markets.

Calithera Biosciences, Inc. must strategically balance debt financing and equity funding. Debt can provide capital for growth, but excessive debt can strain the company’s finances, especially if revenue is unpredictable. Equity funding, while dilutive, strengthens the balance sheet and provides a cushion during lean times.

Here are key considerations regarding Calithera Biosciences, Inc.'s approach to debt and equity:

• Financial Stability: Evaluate if the current debt level poses a risk to the company’s solvency.
• Growth Strategy: Determine if debt is being used to fund projects that are likely to generate a return on investment.
• Market Conditions: Assess how changes in interest rates could impact the cost of debt and the company's profitability.

For more insights into Calithera Biosciences, Inc.'s values and objectives, review Mission Statement, Vision, & Core Values of Calithera Biosciences, Inc. (CALA).

Calithera Biosciences, Inc. (CALA) Liquidity and Solvency

When evaluating a company's financial health, liquidity and solvency are critical factors. Liquidity refers to the ability of a company to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities. For investors in Calithera Biosciences, Inc. (CALA), understanding these aspects is crucial for making informed decisions. Here's a breakdown of key liquidity measures and cash flow trends for CALA.

Assessing Calithera Biosciences, Inc.'s Liquidity:

• Current and Quick Ratios:
• As of February 2025, Calithera Biosciences has a current ratio of 3.60 and a quick ratio of 3.44. A current ratio above 1 indicates that a company's assets are greater than its current liabilities, signaling good liquidity. The quick ratio, which excludes inventory from current assets, provides a more conservative view of liquidity.
• These ratios suggest that CALA has sufficient liquid assets to cover its short-term liabilities.

Analysis of Working Capital Trends:

• Working capital is the difference between a company's current assets and current liabilities. Monitoring the trend in working capital can indicate whether a company is efficiently managing its short-term resources.
• In 2021, CALA's working capital was $47.446 million, which decreased to $33.930 million in 2022.
• The company's working capital for the most recent period is $19.23 million.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how a company generates and uses cash through its operating, investing, and financing activities.

• Operating Cash Flow: This reflects the cash generated (or used) from the company's core business operations. For the last 12 months, Calithera Biosciences had an operating cash flow of -$43.61 million.
• Investing Cash Flow: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment. CALA's investing cash flow was -$133,000.
• Financing Cash Flow: This involves cash flow from activities related to raising capital, such as issuing debt or equity. CALA's financing cash flow was $9.655 million.

Here is a table summarizing the cash flow activities:

Potential Liquidity Concerns or Strengths:

• One notable strength is the company's cash position. CALA has $25.45 million in cash and cash equivalents, with total debt at $1.67 million, resulting in a net cash position of $23.79 million, or $4.88 per share.
• Despite these strengths, the company's negative operating cash flow indicates it is using cash to fund its operations. Investors should monitor how CALA manages its cash burn rate and whether it will need additional financing in the future.

Return on equity (ROE) is -114.14% and return on invested capital (ROIC) is -70.90%.

For more in-depth analysis, you can refer to: Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors

Calithera Biosciences, Inc. (CALA) Valuation Analysis

Determining whether Calithera Biosciences, Inc. (CALA) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst opinions. Key metrics include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios. Analyzing these ratios helps to provide insights into the company's valuation relative to its earnings, book value, and operational cash flow.

As of now, Calithera Biosciences does not have a P/E ratio because the company has negative earnings. Additionally, other valuation metrics like P/B and EV/EBITDA might not be relevant due to the company's financial status.

Stock price trends offer a historical perspective on investor sentiment and company performance. Examining stock price movements over the last 12 months or longer can reveal patterns, volatility, and overall market perception. Recent data indicates:

• On October 4, 2024, Calithera Biosciences, Inc. (CALA) executed a 1-for-15 reverse stock split.
• The closing price on April 19, 2024 was $0.29.
• After the reverse split, the stock opened at $4.35 on October 7, 2024.
• As of April 18, 2025, the stock price is $1.70.

Calithera Biosciences does not currently offer a dividend yield or have a payout ratio, as the company does not distribute dividends.

Analyst consensus provides a forward-looking view on the stock's potential valuation. These ratings reflect collective expectations and can influence investor decisions. As of March 2024, analysts have provided the following ratings:

These ratings suggest a positive outlook on the stock, although it is important to consider that these targets may not have been updated to reflect the reverse stock split. It is also important to consider recent delisting and trading halts.

For further insights, you can read more at: Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors

Calithera Biosciences, Inc. (CALA) Risk Factors

Calithera Biosciences, Inc. (CALA) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Investors should be aware of these potential pitfalls, which are detailed in Calithera's filings with the Securities and Exchange Commission (SEC).

Here's an overview of some key risks:

• Industry Competition: The biotechnology industry is intensely competitive. Calithera faces competition from larger, more established pharmaceutical companies with greater resources. These competitors may develop and market products more effectively, potentially impacting Calithera’s market share and financial performance.
• Regulatory Changes: The development and commercialization of pharmaceutical products are subject to extensive regulation. Changes in regulatory requirements or delays in obtaining regulatory approvals can significantly impact Calithera’s ability to bring its products to market, increasing costs and delaying revenue generation.
• Market Conditions: Unfavorable market conditions, including economic downturns or changes in investor sentiment towards the biotechnology industry, can affect Calithera’s ability to raise capital and maintain its stock price. Market volatility can also impact the valuation of Calithera’s assets and investments.

Operational, financial, and strategic risks are continuously highlighted in Calithera's earnings reports and SEC filings. These include:

• Clinical Trial Risks: The success of Calithera's product candidates depends heavily on the outcome of clinical trials. Unfavorable results, delays, or the inability to enroll patients in clinical trials can significantly impair the development timeline and prospects for regulatory approval.
• Manufacturing and Supply Chain Risks: Calithera relies on third-party manufacturers for the production of its product candidates. Disruptions in the supply chain, manufacturing issues, or quality control problems can affect the availability of drug supplies for clinical trials and potential commercialization.
• Financial Risks: As a clinical-stage biotechnology company, Calithera has substantial ongoing expenses and may not generate significant revenue for several years. The company’s ability to fund its operations depends on raising capital through equity offerings, debt financing, or partnerships. Failure to secure adequate funding can jeopardize its ability to continue operations.
• Strategic Risks: Strategic risks involve decisions related to product development, market positioning, and collaborations. Poor strategic choices or failure to adapt to changing market conditions can negatively impact Calithera’s long-term prospects.

While specific mitigation strategies may vary depending on the nature of the risk, Calithera typically addresses these challenges through:

• Diversification of Product Pipeline: Developing multiple product candidates to reduce reliance on any single product.
• Strategic Partnerships: Collaborating with other companies to share development costs and risks.
• Careful Financial Planning: Maintaining a strong cash position and exploring various financing options to ensure adequate funding.
• Risk Management Processes: Implementing robust risk management processes to identify, assess, and mitigate potential risks.

Investors can gain additional insights into Calithera Biosciences, Inc. (CALA) by visiting: Exploring Calithera Biosciences, Inc. (CALA) Investor Profile: Who’s Buying and Why?

Calithera Biosciences, Inc. (CALA) Growth Opportunities

While Calithera Biosciences, Inc. is currently in a state of liquidation, it's useful to examine its past strategies and assets to understand potential opportunities had the company continued operations. Here's an analysis of key growth drivers, strategic initiatives, and competitive advantages that once positioned for growth. For more insights, you can check: Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors.

Key Growth Drivers:

• Product Innovations: The company focused on discovering and developing novel small molecule drugs targeting tumor metabolism and tumor immunology for cancer treatment.
• Market Expansion through Acquisitions: Calithera acquired clinical-stage assets like sapanisertib and mivavotinib from Takeda Pharmaceutical Company to strengthen its precision oncology pipeline.
• Strategic Collaborations: Partnerships with companies like Incyte and Bristol-Myers Squibb were aimed at developing and commercializing drug candidates.

Strategic Initiatives and Partnerships:

Calithera engaged in several strategic collaborations to expand its research and development efforts:

• Incyte Collaboration: A global collaboration to develop and commercialize CB-1158, a first-in-class, small molecule arginase inhibitor. Incyte provided an upfront payment of $45 million and an $8 million equity investment in Calithera. Incyte funded 70% of global development, while Calithera was responsible for the remaining 30%. Calithera was eligible to receive over $430 million in potential development, regulatory, and commercialization milestones.
• Bristol-Myers Squibb Collaboration: A clinical trial collaboration to evaluate Bristol-Myers Squibb's Opdivo in combination with Calithera's CB-839 in patients with clear cell renal cell carcinoma (ccRCC).
• TransTech Pharma Licensing Agreement: A worldwide licensing agreement granting Calithera exclusive rights to research, develop, and commercialize TransTech's portfolio of hexokinase II inhibitors.

Competitive Advantages:

Calithera's competitive advantages included:

• Proprietary Molecular Targeting Technology: The company possessed advanced technology for targeting specific molecules involved in tumor metabolism.
• Strong Intellectual Property Portfolio: Intellectual property was crucial for maintaining a competitive edge, although patent expirations posed a risk.
• Experienced Management Team: A skilled management team with expertise in oncology and drug development.

Financial Performance and Projections:

While specific revenue growth projections and earnings estimates are not readily available, it's important to consider the broader financial context. In its final months, Calithera faced financial challenges, leading to a liquidation of the business. At the end of September, the company had cash and equivalents of $34.1 million, which was expected to last into the second quarter of the following year.

Historical Financial Data:

This data illustrates the company's substantial investments in research and development, which were critical to its growth strategy.