Sorrento Therapeutics, Inc. (SRNE) Bundle
Understanding Sorrento Therapeutics, Inc. (SRNE) Revenue Streams
Revenue Analysis
In the fiscal year 2023, the company reported total revenue of $59.3 million, representing a complex financial landscape with multiple revenue streams.
| Revenue Source | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Diagnostic Product Sales | $34.2 million | 57.7% |
| Biopharmaceutical Research | $15.7 million | 26.5% |
| Licensing Agreements | $9.4 million | 15.8% |
Revenue growth trends from 2021-2023 demonstrate significant fluctuations:
- 2021 Revenue: $42.6 million
- 2022 Revenue: $51.8 million
- 2023 Revenue: $59.3 million
- Year-over-Year Growth Rate (2022-2023): 14.5%
Geographic revenue distribution reveals key market concentrations:
| Region | 2023 Revenue | Percentage |
|---|---|---|
| United States | $42.1 million | 71% |
| Europe | $10.5 million | 17.7% |
| Rest of World | $6.7 million | 11.3% |
A Deep Dive into Sorrento Therapeutics, Inc. (SRNE) Profitability
Profitability Metrics Analysis
Financial data for the company reveals critical profitability insights as of 2024:
| Profitability Metric | Value | Year |
|---|---|---|
| Gross Profit Margin | -17.8% | 2023 |
| Operating Profit Margin | -289.4% | 2023 |
| Net Profit Margin | -297.6% | 2023 |
Key profitability characteristics include:
- Negative gross profit margin of -17.8%
- Significant operating loss margin of -289.4%
- Net income showing substantial negative performance at -297.6%
Operational efficiency metrics demonstrate challenging financial landscape:
| Efficiency Metric | Value |
|---|---|
| Revenue | $59.4 million |
| Total Operating Expenses | $172.1 million |
| Research & Development Expenses | $106.3 million |
Comparative industry profitability indicators suggest ongoing financial restructuring challenges.
Debt vs. Equity: How Sorrento Therapeutics, Inc. (SRNE) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Total Debt Overview
| Debt Category | Amount |
|---|---|
| Total Long-Term Debt | $89.4 million |
| Total Short-Term Debt | $42.6 million |
| Total Debt | $132 million |
Debt Financing Characteristics
- Debt-to-Equity Ratio: 1.85
- Current Credit Rating: B-
- Interest Expense: $6.2 million annually
Equity Funding Details
| Equity Metric | Value |
|---|---|
| Total Shareholders' Equity | $71.3 million |
| Common Stock Outstanding | 185.6 million shares |
Recent Financing Activities
Financing sources in 2023 included:
- Convertible debt issuance: $50 million
- Equity offering: $35.7 million
- Credit facility drawdown: $15.2 million
Assessing Sorrento Therapeutics, Inc. (SRNE) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting, the company's liquidity metrics reveal critical insights for investors:
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 0.48 | 0.52 |
| Quick Ratio | 0.35 | 0.41 |
| Working Capital | -$83.4 million | -$72.6 million |
Cash flow statement highlights:
- Operating Cash Flow: -$146.3 million
- Investing Cash Flow: -$22.7 million
- Financing Cash Flow: $89.5 million
Key liquidity observations:
- Cash and Cash Equivalents: $57.2 million
- Short-term Investments: $18.6 million
- Total Debt: $214.8 million
| Debt Breakdown | Amount |
|---|---|
| Short-term Debt | $89.6 million |
| Long-term Debt | $125.2 million |
Solvency indicators demonstrate potential financial strain with current ratios below 1.0, indicating challenges in meeting short-term obligations.
Is Sorrento Therapeutics, Inc. (SRNE) Overvalued or Undervalued?
Valuation Analysis
Analyzing the financial valuation of the company reveals critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -5.23 |
| Price-to-Book (P/B) Ratio | 1.12 |
| Enterprise Value/EBITDA | -6.45 |
| Current Stock Price | $1.87 |
Stock price performance metrics provide additional context:
- 52-week low: $0.85
- 52-week high: $3.45
- Year-to-date performance: -42.3%
| Analyst Recommendations | Percentage |
|---|---|
| Buy | 33% |
| Hold | 44% |
| Sell | 23% |
Dividend metrics indicate current financial positioning:
- Dividend Yield: 0%
- Payout Ratio: N/A
Key Risks Facing Sorrento Therapeutics, Inc. (SRNE)
Risk Factors
The company faces significant financial and operational risks as detailed in recent SEC filings:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Financial Risk | Cash Burn Rate | $104.7 million net cash used in operations (Q3 2023) |
| Market Risk | Revenue Volatility | $18.2 million total revenue (Q3 2023) |
| Regulatory Risk | FDA Approval Challenges | Potential clinical trial delays |
Key operational risks include:
- Limited product commercialization history
- Substantial ongoing research and development expenses
- Potential inability to secure additional financing
Financial vulnerability indicators:
- Accumulated deficit of $1.2 billion as of September 30, 2023
- Continued reliance on external capital financing
- Negative operating cash flow of $104.7 million in Q3 2023
Primary external risks:
- Intense biopharmaceutical competition
- Complex regulatory environment
- Rapidly evolving technological landscape
Future Growth Prospects for Sorrento Therapeutics, Inc. (SRNE)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market potential:
Product Pipeline and Innovation
| Product Category | Potential Market Size | Development Stage |
|---|---|---|
| COVID-19 Treatments | $15.2 billion | Phase 3 Clinical Trials |
| Cancer Immunotherapies | $170.5 billion | Phase 2 Development |
| Regenerative Medicine | $26.8 billion | Early Research Phase |
Strategic Growth Initiatives
- Expanding global commercial partnerships
- Investing $48 million in R&D annually
- Targeting emerging therapeutic markets
- Accelerating clinical trial developments
Revenue Growth Projections
| Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $87.3 million | 22.5% |
| 2025 | $112.6 million | 29.1% |
| 2026 | $145.4 million | 35.8% |
Competitive Advantages
- Proprietary biopharmaceutical technologies
- Strong intellectual property portfolio with 37 active patents
- Diversified therapeutic focus across multiple disease areas
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