Breaking Down Entera Bio Ltd. (ENTX) Financial Health: Key Insights for Investors

Are you keeping a close watch on Entera Bio Ltd. (ENTX) and wondering about its financial stability? Did you know that Entera Bio's net loss increased to $9.5 million ($0.25 per share) in 2024, compared to $8.9 million ($0.31 per share) in 2023? With approximately $21 million in cash as of March 2025, how is ENTX positioned to fund its operations, especially with the EB613 phase 3 study preparations and ongoing research programs? Dive in to explore key financial insights and business updates that can help you make informed investment decisions.

Entera Bio Ltd. (ENTX) Revenue Analysis

As of the fiscal year 2023, Entera Bio Ltd. (ENTX) reported total revenue of approximately $0.2 million. A more detailed breakdown reveals the specifics of their revenue streams.

Entera Bio Ltd. primarily operates as a clinical-stage biopharmaceutical company focused on the development and commercialization of orally delivered large molecule therapeutics for unmet medical needs. Its revenue streams are still evolving, as the company is heavily invested in research and development.

Here’s a breakdown of what impacts Entera Bio Ltd.’s revenue:

• Licensing Agreements and Collaborations: A significant portion of Entera Bio's revenue comes from strategic partnerships and licensing agreements. These agreements provide upfront payments, milestone payments, and royalties based on the success of clinical trials and eventual commercialization of products.
• Research Grants: Entera Bio may also receive revenue through research grants from governmental or non-profit organizations, supporting their research and development activities.
• Product Sales: As a clinical-stage company, Entera Bio currently has limited revenue from direct product sales. The future approval and commercialization of their lead product candidate, EB613, for osteoporosis, would significantly contribute to their revenue.

Given the fluctuations in the company's financials, a year-over-year analysis provides essential context.

The revenue growth rate from 2022 to 2023 was approximately 17.6%. This indicates a continued upward trend, although the rate of increase has slowed compared to the previous year's 240% growth. These figures reflect the inherent variability in revenue for a company at this stage, heavily reliant on milestone achievements and partnership agreements.

For more in-depth information, you can read: Breaking Down Entera Bio Ltd. (ENTX) Financial Health: Key Insights for Investors

Entera Bio Ltd. (ENTX) Profitability Metrics

Understanding Entera Bio Ltd.'s (ENTX) profitability involves examining several key financial metrics. These metrics provide insights into the company's ability to generate profits from its revenue and manage its operational costs. Here's an analysis of ENTX's profitability, based on the most recent data from fiscal year 2024:

• Gross Profit: For the year 2024, Entera Bio reported a gross profit of $9,000.
• Gross Profit Margin: The gross profit margin for 2024 was approximately 4.97%. This relatively low margin suggests that the cost of revenue is a significant factor affecting profitability.

Operating profit and net profit margins offer deeper insights into Entera Bio Ltd.'s profitability trends.

• Operating Margin: The operating margin for Entera Bio in 2024 was a staggering -2,850%. This negative figure indicates substantial operating losses, primarily due to high operating expenses relative to the company's revenue.
• Net Profit Margin: Entera Bio's net profit margin stands at 4.97%. This indicates the percentage of revenue that translates into profit after all expenses, including cost of goods sold, operating expenses, interest, and taxes, are accounted for.

A comparison of Entera Bio's profitability ratios with industry averages reveals how the company is performing relative to its peers.

• Entera Bio's operating margin of -2,850% is significantly lower than the median of its peers, indicating potential challenges in managing operating expenses.
• The net profit margin of 4.97% also suggests that Entera Bio is underperforming compared to its peers.

Analyzing operational efficiency involves assessing how well Entera Bio manages its costs and trends in gross margin.

• Cost Management: Entera Bio's cost of revenue is a substantial portion of its revenue, as evidenced by the low gross profit margin. Effective cost management is crucial for improving profitability.
• Gross Margin Trends: Historical data indicates fluctuations in Entera Bio's gross margin. Monitoring these trends can provide insights into the company's ability to control costs and improve profitability over time.

Key financial figures for Entera Bio Ltd. (ENTX) in 2024:

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Entera Bio Ltd. (ENTX) Debt vs. Equity Structure

Understanding Entera Bio Ltd. (ENTX)'s financial health involves analyzing its approach to debt and equity financing. This provides insights into the company's stability and growth potential. Here's a look at key aspects of ENTX's debt versus equity:

As of the fiscal year 2024, Entera Bio Ltd. (ENTX) showcases the following financial data:

• Cash and cash equivalents: $16.1 million
• Total liabilities: $13.88 million
• Total equity: $4.51 million

Overview of Debt Levels

Entera Bio Ltd. (ENTX) maintains both short-term and long-term debt. While specific figures for each category can fluctuate, it's crucial to monitor the overall debt level in relation to the company's assets and equity. As of the latest reports, ENTX's total liabilities stand at $13.88 million. Analyzing the composition of this debt—how much is due within a year (short-term) versus later (long-term)—helps assess the company's immediate and future financial obligations.

Debt-to-Equity Ratio

The debt-to-equity ratio is a vital metric for evaluating a company's financial leverage. It indicates how much debt ENTX uses to finance its assets relative to the amount of equity. The formula is: Total Liabilities / Total Equity. For Entera Bio Ltd. (ENTX), with total liabilities of $13.88 million and total equity of $4.51 million, the debt-to-equity ratio is approximately 3.08. This indicates that ENTX is financed more by debt than by equity.

A high ratio suggests that the company relies more on debt, which can amplify both gains and risks. It's important to compare this ratio with industry standards to determine if ENTX's leverage is typical or excessive. Generally, a ratio above 1.0 may indicate higher risk, while a ratio below 1.0 suggests a more conservative approach.

Recent Debt Activity

Recent financial activities, such as debt issuances, credit ratings, or refinancing, significantly impact Entera Bio Ltd. (ENTX)'s financial standing. Investors should monitor these activities to understand changes in the company's debt profile. For instance, a recent debt issuance might provide capital for research and development, but it also increases the company's debt obligations. Any downgrades in credit ratings could signal increased risk, leading to higher borrowing costs.

Balancing Debt and Equity

Entera Bio Ltd. (ENTX) strategically balances debt financing with equity funding to support its operational and strategic goals. While debt can provide necessary capital, excessive debt can strain the company's finances, especially if revenue streams are inconsistent. Equity funding, on the other hand, dilutes ownership but doesn't create debt obligations.

The optimal balance depends on factors such as the company's growth stage, market conditions, and investment opportunities. Companies like Entera Bio Ltd. (ENTX) must carefully weigh the advantages and disadvantages of each financing method to maintain financial flexibility and stability.

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Entera Bio Ltd. (ENTX) Liquidity and Solvency

Assessing the liquidity and solvency of Entera Bio Ltd. (ENTX) is crucial for investors to understand the company's ability to meet its short-term obligations and long-term financial stability. Here's an overview of key financial metrics and trends:

Assessing Entera Bio Ltd.'s Liquidity:

Current and Quick Ratios:

As of December 2024, Entera Bio's quick ratio was 7.63. The current ratio as of September 30, 2024, was 6.19, derived from current assets of $6.9 million and current liabilities of $1.1 million. These ratios suggest a strong liquidity position, indicating the company's ability to cover its short-term liabilities with its most liquid assets.

Analysis of Working Capital Trends:

As of September 30, 2024, the working capital was $5.8 million, calculated from current assets of $6.9 million minus current liabilities of $1.1 million. Monitoring these trends helps in assessing the company's operational efficiency and short-term financial health.

Cash Flow Statements Overview:

For the nine months ended September 30, 2024:

• Cash flow from operating activities: -$7.968 million.

These figures reflect the cash used in the company's operations.

Potential Liquidity Concerns or Strengths:

Entera Bio's press release on December 26, 2023, announced the closing of a private placement, raising approximately $6.6 million. This extends the company's cash runway into 2025. The company intends to use the net proceeds from the private placement for general working capital purposes.

While the company's liquidity ratios appear strong, it's important to note that Entera Bio has been consistently experiencing negative cash flows from operating activities. Management is actively evaluating financing alternatives in public and private equity markets, debt financing, and strategic collaborations to finance future activities. However, there is no certainty that the company will be able to obtain such funding.

Here is a link to more information: Breaking Down Entera Bio Ltd. (ENTX) Financial Health: Key Insights for Investors

Entera Bio Ltd. (ENTX) Valuation Analysis

Determining whether Entera Bio Ltd. (ENTX) is overvalued or undervalued requires a multifaceted approach, considering various financial metrics and market dynamics. Here's an overview of key valuation indicators:

Valuation Ratios:

• Price-to-Earnings (P/E): As of April 2025, a traditional P/E ratio might not be applicable if Entera Bio Ltd. (ENTX) does not have positive earnings. In such cases, other valuation methods are more relevant.
• Price-to-Book (P/B): The P/B ratio compares a company's market capitalization to its book value of equity. This can indicate whether the stock price is aligned with the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio assesses the company's total value (market cap plus debt, minus cash) relative to its earnings before interest, taxes, depreciation, and amortization. It provides a clearer picture of valuation, especially for companies with significant debt.

Stock Price Trends: Examining Entera Bio Ltd.'s (ENTX) stock price trends over the past 12 months (or longer) provides insights into market sentiment and investor confidence. Significant price volatility could reflect the inherent risks associated with biotechnology companies, such as clinical trial outcomes and regulatory approvals.

Dividend Yield and Payout Ratios: As a biotechnology company focused on research and development, Entera Bio Ltd. (ENTX) likely does not offer dividends. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst Consensus: Analyst ratings provide a summarized view of professional opinions on Entera Bio Ltd.'s (ENTX) stock. These ratings typically range from 'buy' to 'sell' and reflect collective expectations regarding the stock's future performance. Refer to the latest analyst reports for current recommendations.

For more detailed insights, check out: Breaking Down Entera Bio Ltd. (ENTX) Financial Health: Key Insights for Investors

Entera Bio Ltd. (ENTX) Risk Factors

Entera Bio Ltd. (ENTX) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory hurdles. Investors need to be aware of these potential pitfalls to make informed decisions.

Here's a breakdown of key risk areas:

• Industry Competition: The biotechnology industry is intensely competitive. Entera Bio faces competition from established pharmaceutical companies with greater resources, as well as other biotech firms developing similar oral biologics. This competition could limit Entera Bio's market share and pricing power.
• Regulatory Changes: The development and commercialization of pharmaceutical products are subject to extensive regulation by agencies like the FDA in the United States. Changes in regulatory requirements or delays in obtaining regulatory approvals can significantly impact Entera Bio's timelines and increase costs.
• Market Conditions: Unfavorable market conditions, such as economic downturns or changes in investor sentiment towards the biotechnology sector, could affect Entera Bio's ability to raise capital and impact its stock price.

Operational, financial, and strategic risks are often detailed in Entera Bio's earnings reports and filings. These documents provide crucial insights into the company's assessment of its vulnerabilities.

Examples of such risks include:

• Clinical Trial Risks: The success of Entera Bio depends heavily on the outcome of its clinical trials. Unfavorable results or delays in clinical trials could halt the development of its product candidates and significantly harm the company's prospects.
• Manufacturing Risks: Manufacturing biologic products is complex and subject to stringent quality control requirements. Any disruptions in manufacturing or failures to meet quality standards could lead to product shortages or delays.
• Commercialization Risks: Even if Entera Bio's products receive regulatory approval, there is no guarantee that they will be commercially successful. Market acceptance, pricing pressures, and competition from other therapies could limit the commercial potential of its products.
• Financial Risks: Entera Bio will likely need to raise additional capital to fund its operations and development programs. There is a risk that the company may not be able to secure financing on favorable terms, or at all, which could force it to curtail its activities.

Mitigation strategies are crucial for addressing these risks. While specific plans vary, common strategies include:

• Diversifying Product Pipeline: Developing multiple product candidates reduces the company's reliance on any single product and mitigates the impact of potential setbacks.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide access to funding, expertise, and distribution networks.
• Risk Management Programs: Implementing robust risk management programs helps identify, assess, and mitigate potential risks across the organization.
• Insurance Coverage: Maintaining adequate insurance coverage can protect against certain financial losses, such as those arising from product liability claims or clinical trial failures.

For more insights into Entera Bio Ltd. (ENTX), explore: Mission Statement, Vision, & Core Values of Entera Bio Ltd. (ENTX).

Entera Bio Ltd. (ENTX) Growth Opportunities

Entera Bio Ltd. (ENTX) is focused on the development and commercialization of orally delivered large molecule therapeutics for unmet medical needs. The company's future growth prospects are intricately tied to its ability to successfully navigate clinical trials, secure regulatory approvals, and effectively commercialize its products.

Key growth drivers for Entera Bio Ltd. (ENTX) include:

• Product Innovations: The primary growth driver is the successful development and approval of EB613, an oral formulation of human parathyroid hormone (PTH) for osteoporosis. Positive clinical trial results and subsequent regulatory approval would significantly boost revenue.
• Market Expansion: Expanding the target market for EB613 beyond post-menopausal women with osteoporosis could unlock additional growth. This includes exploring applications for other bone-related diseases and potentially developing new formulations or delivery methods.
• Strategic Partnerships: Collaborations with larger pharmaceutical companies for development, manufacturing, or commercialization could accelerate growth and reduce financial risk.

Future revenue growth and earnings estimates are highly dependent on the clinical and regulatory progress of EB613. While specific projections can vary, analysts' estimates generally reflect optimism contingent on positive clinical outcomes. Keep in mind that these estimates are speculative and subject to change based on clinical trial data, regulatory decisions, and market conditions.

Strategic initiatives that may drive future growth:

• Clinical Trial Advancement: Successfully completing Phase 3 trials for EB613 is critical. Positive data will pave the way for regulatory submissions and eventual commercialization.
• Regulatory Approvals: Securing approvals from regulatory bodies like the FDA (U.S. Food and Drug Administration) and EMA (European Medicines Agency) is essential for market access.
• Commercialization Strategy: Developing a robust commercialization plan, including manufacturing, marketing, and distribution strategies, is crucial for maximizing revenue potential upon approval.

Entera Bio Ltd. (ENTX) possesses several competitive advantages that could position it for growth:

• Oral Delivery Technology: The company's proprietary oral delivery technology for large molecules offers a significant advantage over injectable alternatives, potentially improving patient compliance and convenience.
• Focus on Unmet Needs: Targeting osteoporosis and other bone-related diseases with limited oral treatment options addresses a significant unmet medical need, providing a clear market opportunity.
• Intellectual Property: A strong intellectual property portfolio protects its technology and products, providing a competitive barrier to entry.

For more insights into the company's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Entera Bio Ltd. (ENTX).

A SWOT analysis provides a structured framework for evaluating Entera Bio Ltd.'s (ENTX) strategic position. Here's how it might look:

This analysis highlights that while Entera Bio Ltd. (ENTX) has promising technology and targets a significant market, it also faces substantial risks and challenges typical of a biotechnology company. Success hinges on clinical trial outcomes, regulatory approvals, and effective commercialization strategies.

The financial health of Entera Bio Ltd. (ENTX) can be further evaluated through key financial ratios and metrics. These indicators provide insights into the company's liquidity, solvency, and profitability, offering a more detailed picture for investors.