Breaking Down Iterum Therapeutics plc (ITRM) Financial Health: Key Insights for Investors

Are you keeping a close watch on Iterum Therapeutics (ITRM) and trying to understand its financial standing? As of December 31, 2024, the company faces an accumulated deficit of $486.1 million, but also holds $24.1 million in cash and cash equivalents. With these figures in mind, it's crucial to explore whether Iterum's current resources can sustain its operations, especially considering they've expressed concerns about their ability to continue as a going concern. Dive in to uncover key insights about Iterum's financial health and what it means for investors like you.

Iterum Therapeutics plc (ITRM) Revenue Analysis

Iterum Therapeutics plc (ITRM) is a pharmaceutical company focused on developing and commercializing anti-infectives to combat multi-drug resistant pathogens. Understanding the company's revenue streams and financial performance is crucial for investors.

Based on the most recent financial results, here's a breakdown of Iterum Therapeutics' revenue situation:

• Primary Revenue Sources: Iterum Therapeutics focuses on delivering differentiated anti-infectives. Their lead product is sulopenem, available in both oral and IV formulations. In Q4 2024, the FDA approved their product ORLYNVAH™ (oral sulopenem) for treating uncomplicated urinary tract infections (uUTIs) in adult women, caused by specific microorganisms when there are limited or no alternative oral antibacterial treatment options.
• Revenue: For the year 2024, Iterum Therapeutics reported revenue of $0.00.

Key financial figures for 2024 include:

• Research and Development (R&D) expenses decreased from $40.0 million in 2023 to $10.5 million in 2024.
• General and Administrative (G&A) expenses increased from $7.5 million in 2023 to $8.0 million in 2024.
• Net loss improved from $38.4 million in 2023 to $24.8 million in 2024.
• The company's cash and cash equivalents totaled $24.1 million as of December 31, 2024.

Iterum repaid its 6.500% Exchangeable Senior Subordinated Notes due 2025 in January 2025.

The company expects its cash and cash equivalents, including $4.8 million of net proceeds raised under its at-the-market offering program from January 1, 2025, through February 6, 2025, will be sufficient to fund operations into the second half of 2025.

Here is a summary table of Iterum Therapeutics plc financials:

For more in-depth information, you can refer to this resource: Breaking Down Iterum Therapeutics plc (ITRM) Financial Health: Key Insights for Investors

Iterum Therapeutics plc (ITRM) Profitability Metrics

Analyzing Iterum Therapeutics plc's profitability involves examining several key financial metrics to assess its financial health and operational efficiency. Here’s a detailed breakdown based on the available information:

Iterum Therapeutics is a pharmaceutical company, and like many in this sector, particularly those in the clinical stage, profitability metrics often reflect heavy investment in research and development rather than immediate returns. It's crucial to consider their stage of development when evaluating these figures. For detailed insights, you might find this resource helpful: Exploring Iterum Therapeutics plc (ITRM) Investor Profile: Who’s Buying and Why?

As of the latest financial data, here’s an overview of ITRM's profitability metrics:

• Gross Profit: Given that Iterum Therapeutics is in a heavy R&D phase, gross profit figures may vary significantly and might not be the most indicative measure of long-term potential at this stage.
• Operating Profit: This metric is crucial as it reflects the earnings from Iterum Therapeutics' core business operations after deducting operating expenses. Investors should monitor this to see how efficiently the company manages its costs relative to its revenue.
• Net Profit Margins: Net profit margin is an important indicator of overall profitability. However, for a company like Iterum, which is still investing heavily in R&D, negative margins are not uncommon. The trend and magnitude of these losses should be carefully evaluated.

Here's a look at some potential profitability data (Note: The specifics would need to be pulled from Iterum's latest financial statements):

When comparing Iterum Therapeutics to industry averages, it’s essential to consider its specific niche within the pharmaceutical sector. Companies focused on new drug development often have different financial profiles than those with established products. Investors should benchmark against similar-stage companies, focusing on R&D spend, clinical trial progress, and potential market size of their drugs.

Analyzing operational efficiency involves looking at how well Iterum Therapeutics manages its costs and how this impacts its gross margins. Key areas to examine include:

• Cost of Goods Sold (COGS): For a pharmaceutical company, this includes the cost of manufacturing, clinical trials, and materials.
• R&D Expenses: A significant portion of Iterum's expenses will be in this area. Monitoring the efficiency of R&D spending—how much is spent versus the progress in their drug pipeline—is critical.
• SG&A Expenses: These include selling, general, and administrative costs. Keeping these under control is vital for long-term sustainability.

Investors should closely watch these elements to understand the trajectory of Iterum Therapeutics' financial health, especially as it transitions from a development-stage company to potentially a commercial entity.

Iterum Therapeutics plc (ITRM) Debt vs. Equity Structure

Understanding how Iterum Therapeutics plc (ITRM) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity financing.

As of December 31, 2023, Iterum Therapeutics had a total debt of $46.87 million. Specifically, the breakdown includes:

• Short-term debt: $0.39 million
• Long-term debt: $46.48 million

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. As of December 31, 2023, Iterum Therapeutics' debt-to-equity ratio was approximately 3.13. This ratio is calculated by dividing the total liabilities by shareholders equity, indicating the extent to which the company is using debt to finance its assets relative to the value of shareholders' equity. A high ratio suggests that the company relies more on debt, which can amplify both risk and potential returns.

Here's a snapshot of Iterum Therapeutics' liabilities and equity as of December 31, 2023:

Recent financial activities provide insights into Iterum Therapeutics' financing strategies. In 2023, the company executed a 1-for-15 reverse stock split, which was crucial for regaining compliance with Nasdaq's minimum bid price requirement. This move was part of a broader strategy to enhance the company’s financial stability and attractiveness to investors. While this doesn't directly impact debt levels, it influences the equity structure and investor perception.

Iterum Therapeutics strategically balances debt and equity to fund its operations, particularly the development and commercialization of its lead product, sulopenem. While specific details on credit ratings are not available in the provided context, understanding the balance between debt and equity is vital. The company's reliance on debt is evident from its debt-to-equity ratio, but it also actively manages its equity through stock offerings and other financial maneuvers to sustain operations and growth. To gain more insight into the company's goals, you might want to read: Mission Statement, Vision, & Core Values of Iterum Therapeutics plc (ITRM).

Iterum Therapeutics plc (ITRM) Liquidity and Solvency

Understanding Iterum Therapeutics plc's financial health requires a close examination of its liquidity and solvency. These metrics provide insights into the company's ability to meet its short-term and long-term obligations, which is crucial for investors assessing risk and potential.

Assessing Iterum Therapeutics plc's Liquidity:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates better liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more conservative measure of liquidity. It is calculated as (Current Assets - Inventory) / Current Liabilities.

Analysis of working capital trends involves monitoring the difference between a company's current assets and current liabilities over time. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Consistent growth in working capital can signal improving liquidity, while a decline may raise concerns.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how a company generates and uses cash. These statements are divided into three main categories:

• Operating Activities: Cash flow from operating activities reflects the cash generated from a company's core business operations. Positive cash flow from operations is a good sign, indicating that the company is generating enough cash to sustain its business.
• Investing Activities: Cash flow from investing activities includes cash used for investments in assets, such as property, plant, and equipment (PP&E). These activities can involve both acquisitions and disposals.
• Financing Activities: Cash flow from financing activities involves cash raised from debt and equity financing, as well as payments made to investors, such as dividends and debt repayment.

By examining the trends in operating, investing, and financing cash flows, investors can gain a better understanding of Iterum Therapeutics plc's financial stability and its ability to fund its operations and growth.

Potential liquidity concerns may arise if a company consistently reports negative cash flow from operations or has a declining current ratio. Conversely, strengths may be evident if a company maintains a high current ratio, generates strong cash flow from operations, and effectively manages its working capital.

Iterum Therapeutics plc (ITRM) Valuation Analysis

Determining whether Iterum Therapeutics plc (ITRM) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these critical areas to provide a clearer picture for investors.

When assessing whether a company is overvalued or undervalued, several key financial ratios provide valuable insights. These include:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A high P/E ratio might suggest overvaluation, while a low P/E ratio could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio may suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially useful for comparing companies with different capital structures.

Analyzing the stock price trends over the last 12 months (or longer) offers insights into market sentiment and investor confidence. Observing significant price increases or declines can be indicative of market perception of the company’s future prospects. As of April 18, 2025, ITRM shows a mixed performance, with some fluctuations reflecting the inherent volatility of the biotech sector. Monitoring these trends helps in understanding the broader market context in which ITRM operates.

Dividend yield and payout ratios are important for investors seeking income. However, as a biotechnology company focused on research and development, Iterum Therapeutics plc (ITRM) does not currently offer a dividend. Therefore, these metrics are not applicable in this valuation analysis.

Analyst consensus plays a significant role in shaping investor expectations. Examining whether analysts rate the stock as a 'buy,' 'hold,' or 'sell' provides a consolidated view of expert opinions. These ratings often consider the company’s financial health, growth prospects, and market conditions. Keep in mind that analyst ratings are not definitive but offer a valuable perspective to consider alongside other valuation metrics.

Here's a hypothetical overview of valuation ratios for Iterum Therapeutics plc (ITRM). Please note that this data is for illustrative purposes only and real-time data should be consulted for investment decisions.

Keep in mind that these ratios should be compared against industry averages and peer companies to derive meaningful conclusions. Additionally, factors such as pipeline progress, regulatory milestones, and market conditions should be considered in the overall valuation assessment.

For more insights into the investors behind Iterum Therapeutics plc (ITRM), check out: Exploring Iterum Therapeutics plc (ITRM) Investor Profile: Who’s Buying and Why?

Iterum Therapeutics plc (ITRM) Risk Factors

Investing in Iterum Therapeutics plc (ITRM) involves navigating a landscape of both internal and external risks that could significantly impact its financial health. These risks span from industry competition and regulatory changes to market conditions and specific operational challenges detailed in their financial reports.

Here's a breakdown of key risk areas:

• Industry Competition: The pharmaceutical industry is intensely competitive. Iterum faces competition from established pharmaceutical companies with greater resources, as well as from biotechnology firms developing similar products. This competition can affect pricing, market share, and the success of Iterum's products.
• Regulatory Risks: The development, approval, and marketing of pharmaceutical products are heavily regulated. Changes in regulations or delays in obtaining regulatory approvals can significantly impact Iterum's timelines and financial prospects.
• Market Conditions: Unfavorable market conditions, including economic downturns or changes in healthcare spending, can affect the demand for Iterum's products and its ability to raise capital.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include challenges in manufacturing, supply chain disruptions, and difficulties in scaling up production to meet market demand.
• Financial Risks: Financial risks encompass the need for additional funding to support ongoing research and development, commercialization efforts, and potential debt obligations.
• Strategic Risks: Strategic risks involve the company's ability to execute its business plan, adapt to changing market dynamics, and successfully commercialize its products.

Mitigation strategies and plans are crucial for addressing these risks. While specific details may vary depending on the nature of the risk, common strategies include:

• Diversification: Diversifying the product pipeline to reduce reliance on a single product.
• Strategic Partnerships: Forming partnerships to share development costs and access new markets.
• Risk Management: Implementing robust risk management processes to identify, assess, and mitigate potential risks.

Understanding these risks and mitigation strategies is essential for investors to make informed decisions about Iterum Therapeutics plc (ITRM). For further insights into the company's mission, vision, and core values, check out: Mission Statement, Vision, & Core Values of Iterum Therapeutics plc (ITRM).

Iterum Therapeutics plc (ITRM) Growth Opportunities

Iterum Therapeutics plc faces a challenging financial landscape. As a pharmaceutical company focused on developing and commercializing anti-infectives, its future growth prospects are heavily reliant on successful clinical trials, regulatory approvals, and market acceptance of its products. Here's an analysis of the key growth drivers, strategic initiatives, and competitive advantages that could shape Iterum Therapeutics' future.

One of the primary drivers for Iterum Therapeutics' growth is its pipeline of product candidates. The success of these products in addressing unmet medical needs, particularly in the area of multi-drug resistant infections, could significantly boost the company's revenue. However, the path to commercialization is fraught with risks, including clinical trial failures and regulatory hurdles.

Future revenue growth projections and earnings estimates for Iterum Therapeutics are subject to considerable uncertainty. Analysts' forecasts can vary widely, depending on assumptions about the company's ability to secure regulatory approvals, commercialize its products effectively, and compete in the market. Investors should carefully consider these uncertainties when evaluating the company's growth potential.

Strategic initiatives and partnerships play a crucial role in Iterum Therapeutics' growth strategy. Collaborations with other pharmaceutical companies, research institutions, or government agencies can provide access to additional resources, expertise, and funding. These partnerships can also help to expand the company's product pipeline and market reach.

Iterum Therapeutics operates in a competitive market with several established players. To achieve sustainable growth, the company needs to differentiate itself through product innovation, superior clinical data, or effective marketing strategies. Its ability to secure and maintain a competitive advantage will be critical to its long-term success.

To better understand Iterum Therapeutics, consider exploring their Mission Statement, Vision, & Core Values of Iterum Therapeutics plc (ITRM).

Here are potential strategic advantages that could position Iterum Therapeutics for growth:

• Novel Antibiotics: Development of new antibiotics to combat multi-drug resistant infections.
• Strategic Partnerships: Collaborations with larger pharmaceutical companies for development and commercialization.
• Market Exclusivity: Securing patents and regulatory exclusivity for its products.

A summary of potential growth drivers and challenges is shown below: