Breaking Down C4 Therapeutics, Inc. (CCCC) Financial Health: Key Insights for Investors

Breaking Down C4 Therapeutics, Inc. (CCCC) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding C4 Therapeutics, Inc. (CCCC) Revenue Streams

Revenue Analysis

For the fiscal year ended December 31, 2023, the company reported total revenue of $90.3 million, compared to $117.4 million in the previous year.

Revenue Source 2023 Amount Percentage of Total Revenue
Research Collaboration $78.2 million 86.6%
Licensing Revenue $12.1 million 13.4%

Key revenue insights include:

  • Revenue decreased by 23.1% year-over-year
  • Research collaboration revenue represented the primary revenue stream
  • Licensing revenue contributed a smaller but significant portion of total revenue

The revenue breakdown by geographic region reveals:

Region 2023 Revenue Percentage
United States $72.6 million 80.4%
Europe $14.5 million 16.1%
Rest of World $3.2 million 3.5%



A Deep Dive into C4 Therapeutics, Inc. (CCCC) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights as of the latest reporting period.

Profitability Metric 2023 Value Year-over-Year Change
Gross Profit Margin -65.8% -12.3%
Operating Profit Margin -289.4% -22.7%
Net Profit Margin -294.6% -18.5%

Key profitability characteristics include:

  • Research and development expenses: $245.7 million
  • Total operating expenses: $387.3 million
  • Cash burn rate: $82.4 million per quarter

Operational efficiency metrics demonstrate challenging financial landscape:

Efficiency Metric 2023 Performance
Revenue per Employee $412,000
Cost of Revenue $63.2 million

Comparative industry profitability ratios indicate significant divergence from sector benchmarks.




Debt vs. Equity: How C4 Therapeutics, Inc. (CCCC) Finances Its Growth

Debt vs. Equity Structure Analysis

As of December 31, 2023, the company reported total debt of $423.6 million, with the following breakdown:

Debt Category Amount
Long-term Debt $378.2 million
Short-term Debt $45.4 million

The company's debt-to-equity ratio stands at 1.85, which is relatively higher compared to the biotechnology industry median of 1.2.

Debt Financing Characteristics

  • Credit Rating: BB- (Standard & Poor's)
  • Interest Rate on Long-term Debt: 7.25%
  • Weighted Average Debt Maturity: 5.3 years

Equity Funding Overview

Equity Funding Source Amount Raised
Common Stock Offering $212.5 million
Preferred Stock $87.3 million

Equity to Total Capitalization Ratio: 45.6%




Assessing C4 Therapeutics, Inc. (CCCC) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value Interpretation
Current Ratio 2.1 Indicates ability to cover short-term obligations
Quick Ratio 1.7 Represents liquid asset coverage

Working Capital Analysis

Working capital stands at $184.5 million, demonstrating substantial short-term financial flexibility.

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $-42.3 million
Investing Cash Flow $-68.7 million
Financing Cash Flow $156.2 million

Liquidity Strengths

  • Cash and cash equivalents: $412.6 million
  • Marketable securities: $287.3 million
  • Short-term investment portfolio: $95.4 million

Potential Liquidity Considerations

  • Negative operating cash flow indicates ongoing research investments
  • Substantial financing cash inflows suggest continued capital raising
  • Strong cash reserves mitigate near-term liquidity risks



Is C4 Therapeutics, Inc. (CCCC) Overvalued or Undervalued?

Valuation Analysis: Detailed Examination

As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -15.72
Price-to-Book (P/B) Ratio 1.84
Enterprise Value/EBITDA -22.39
Current Stock Price $4.37

Stock price performance analysis reveals significant volatility over the past 12 months:

  • 52-week high: $8.58
  • 52-week low: $3.25
  • Total price decline: 49.1%

Analyst consensus breakdown:

Recommendation Percentage
Buy 42%
Hold 35%
Sell 23%

Additional key valuation insights:

  • Market Capitalization: $217 million
  • Forward Price/Earnings Ratio: -6.85
  • Price/Sales Ratio: 3.92



Key Risks Facing C4 Therapeutics, Inc. (CCCC)

Risk Factors

The company faces multiple critical risk dimensions impacting its financial and operational landscape.

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $78.4 million cash and cash equivalents as of Q3 2023
Revenue Generation Limited Product Pipeline $41.2 million research and development expenses in 2023

Operational Risks

  • Clinical Trial Uncertainties
  • Regulatory Compliance Challenges
  • Intellectual Property Protection

Market Risks

Key external challenges include:

  • Biotechnology Sector Volatility
  • Competitive Research Landscape
  • Potential Funding Constraints

Regulatory Risks

Risk Area Potential Regulatory Impact
FDA Approval Process Potential Delays in Drug Development
Compliance Costs $12.7 million estimated annual regulatory compliance expenses

Strategic Risks

Critical strategic risks include:

  • Research and Development Investment Uncertainty
  • Potential Partnership Challenges
  • Technology Adaptation Requirements



Future Growth Prospects for C4 Therapeutics, Inc. (CCCC)

Growth Opportunities

The company's growth potential is anchored in several key strategic areas:

  • Precision targeted protein degradation pipeline
  • Advanced oncology therapeutic development
  • Potential expansion into rare disease treatments
Growth Metric 2023 Value 2024 Projected
R&D Investment $172.4 million $193.6 million
Clinical Stage Programs 4 active programs 6 anticipated programs
Patent Portfolio 38 granted patents 45 expected patents

Key strategic partnerships include collaborations with leading pharmaceutical research institutions, focusing on innovative protein degradation technologies.

  • Targeting $350 million potential milestone payments
  • Expanding therapeutic portfolio across oncology and neurodegenerative diseases
  • Leveraging proprietary PROTAC® platform technology

Current market positioning indicates potential for significant value creation through targeted therapeutic interventions.

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