Breaking Down TScan Therapeutics, Inc. (TCRX) Financial Health: Key Insights for Investors

Are you keeping a close watch on TScan Therapeutics, Inc. (TCRX) and wondering about its financial stability? With a significant drop in revenue from $21 million in 2023 to $2.8 million in 2024, and a net loss of $127.5 million, understanding the key financial insights is crucial. How will upcoming clinical data releases impact investor confidence, and can strategic financial decisions pave the way for a turnaround? Let's delve into the numbers to uncover the financial realities and future prospects of this clinical-stage biotechnology company.

TScan Therapeutics, Inc. (TCRX) Revenue Analysis

TScan Therapeutics, Inc. currently does not have any products approved for sale and, as such, has not generated any product revenue. According to their 2023 report, the company's revenue consists primarily of revenue from collaborative research and development agreements.

As of December 31, 2023, TScan Therapeutics reported total revenue of $4.5 million. This revenue was derived from the company's collaboration agreement with Amgen. In 2022, TScan Therapeutics reported total revenue of $3.6 million, also derived from the Amgen agreement. This represents a year-over-year increase of approximately 25%.

Here's a breakdown of TScan Therapeutics' revenue over the past few years:

• 2023: $4.5 million
• 2022: $3.6 million

Given that TScan Therapeutics is a clinical-stage biopharmaceutical company, its financial performance is heavily influenced by its research and development activities, as well as its strategic collaborations. Revenue from collaborations can vary significantly depending on the achievement of specific milestones and the progress of their research programs.

An overview of TScan Therapeutics' financial information is available at Breaking Down TScan Therapeutics, Inc. (TCRX) Financial Health: Key Insights for Investors.

TScan Therapeutics, Inc. (TCRX) Profitability Metrics

Analyzing TScan Therapeutics, Inc.'s (TCRX) profitability involves examining several key financial metrics. These metrics provide insights into the company's ability to generate profits relative to its revenue, assets, and equity. A comprehensive look at these figures helps investors understand the company's financial health and operational efficiency.

Here's an overview of TScan Therapeutics, Inc.'s profitability, incorporating available data from 2024:

• Gross Profit: For the year 2024, TScan Therapeutics reported a gross profit of $2.8 million. However, it's important to note a significant decrease from $21 million in 2023, highlighting potential challenges in maintaining revenue streams.
• Gross Margin: The gross margin for 2024 stands at 100%. This indicates that the company was able to maintain profitability on its collaboration revenues.
• Operating Income: The operating income for 2024 was reported as -$134.821 million. This signifies substantial operating losses, primarily driven by research and development and administrative expenses.
• Net Income: The net loss for 2024 was -$127.5 million, compared to a net loss of $89.2 million in 2023.

The following table summarizes key profitability figures for TScan Therapeutics from 2020-2024:

TScan Therapeutics' stock has faced significant challenges, with shares dropping 11.9% earlier in April 2025. The company's reliance on clinical trial success is underscored by its financial struggles, including a steep revenue decline from $21 million in 2023 to $2.8 million in 2024. Upcoming data releases in 2025 are crucial for restoring investor confidence.

Despite these financial headwinds, analysts maintain optimism, with six brokerages holding a 'buy' rating for the company. The average 12-month price target is $9.33. This reflects the potential seen in TScan's innovative TCR-T therapies for treating hematologic malignancies and solid tumors, despite the current negative margins and revenue below expectations.

To gain a deeper understanding of TScan Therapeutics, Inc.'s financial health, consider exploring this comprehensive analysis: Breaking Down TScan Therapeutics, Inc. (TCRX) Financial Health: Key Insights for Investors.

TScan Therapeutics, Inc. (TCRX) Debt vs. Equity Structure

Understanding how TScan Therapeutics, Inc. (TCRX) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity financing. Here's a breakdown:

As of the fiscal year 2024, TScan Therapeutics, Inc. (TCRX) showcases the following financial overview regarding its debt structure:

• TScan Therapeutics, Inc. (TCRX) held a total cash and cash equivalents of $171.55 million.
• The company's total assets amounted to $190.21 million.
• Total liabilities stood at $22.58 million.
• The company's total equity was valued at $167.63 million.

While specific figures for long-term and short-term debt are not detailed in the provided data for fiscal year 2024, analyzing the balance sheet offers insights into the company’s financial leverage. Given the total liabilities of $22.58 million and total equity of $167.63 million, we can infer the following:

• Debt-to-Equity Ratio: Although precise debt figures are absent, the ratio can be estimated by considering total liabilities relative to equity. A lower ratio generally indicates less financial risk.
• Financing Strategy: With substantial cash reserves ($171.55 million), TScan Therapeutics, Inc. (TCRX) appears to be well-capitalized, reducing the immediate need for additional debt.

To get a clearer picture of TScan Therapeutics, Inc. (TCRX)'s debt management and financing strategy, one might consider the following:

• Reviewing SEC Filings: Detailed information on debt issuances, credit ratings, and refinancing activities can be found in the company's filings with the Securities and Exchange Commission (SEC).
• Analyzing Cash Flow Statements: Examining cash flow from financing activities will reveal how the company is raising capital through debt and equity.
• Comparing to Industry Peers: Benchmarking TScan Therapeutics, Inc. (TCRX)'s debt-to-equity ratio against other biotechnology companies can provide insights into its financial risk profile.

Additionally, understanding the company's strategic vision can provide context for its financial decisions. Learn more about their Mission Statement, Vision, & Core Values of TScan Therapeutics, Inc. (TCRX).

TScan Therapeutics, Inc. (TCRX) Liquidity and Solvency

Assessing TScan Therapeutics, Inc.'s financial health requires a close look at its liquidity and solvency, which indicate its ability to meet short-term and long-term obligations, respectively. These metrics are vital for investors to gauge the company’s financial stability and risk profile.

Liquidity Positions: Current and Quick Ratios

The current and quick ratios are fundamental indicators of a company's ability to cover its short-term liabilities with its short-term assets. As of December 31, 2023, TScan Therapeutics, Inc. reported:

• Current Ratio: 2.8x
• Quick Ratio: 2.8x

These ratios suggest a healthy liquidity position, as both are well above the benchmark of 1.0x, indicating that TScan Therapeutics, Inc. has sufficient liquid assets to cover its current liabilities. The equal values of the current and quick ratios imply that the company's current assets largely consist of cash and accounts receivable, with minimal inventory.

Working Capital Trends

Working capital, the difference between a company's current assets and current liabilities, is a key measure of its short-term financial health. For TScan Therapeutics, Inc., the working capital as of December 31, 2023, was approximately $78.1 million.

Cash Flow Statements Overview

Analyzing cash flow trends provides insights into how TScan Therapeutics, Inc. generates and uses cash. Here’s an overview based on the 2023 data:

• Net Cash Used in Operating Activities: $(47.9) million
• Net Cash Used in Investing Activities: $(0.6) million
• Net Cash Provided by Financing Activities: $53.9 million

TScan Therapeutics, Inc. is using cash in its operating and investing activities. The company is primarily funded through financing activities. This is typical for many biotechnology companies that are in the research and development phase.

Potential Liquidity Concerns or Strengths

TScan Therapeutics, Inc. appears to have a solid liquidity position, supported by its healthy current and quick ratios, as well as a substantial working capital. However, the negative cash flow from operating activities indicates that the company is reliant on external funding to sustain its operations. As of December 31, 2023, TScan Therapeutics, Inc. had cash, cash equivalents, and marketable securities totaling $85.2 million.

Here is a summary table of TScan Therapeutics, Inc.'s key financial data:

For more insights into who is investing in TScan Therapeutics, Inc. and why, check out: Exploring TScan Therapeutics, Inc. (TCRX) Investor Profile: Who’s Buying and Why?

TScan Therapeutics, Inc. (TCRX) Valuation Analysis

Determining whether TScan Therapeutics, Inc. (TCRX) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst perspectives. Let's delve into key valuation metrics to provide a clearer picture for investors.

Currently, traditional valuation metrics like price-to-earnings (P/E) ratio are not applicable for TScan Therapeutics, Inc. (TCRX), as the company does not have positive earnings. For companies in the biotechnology sector, alternative valuation methods are often employed due to the high growth potential and focus on future earnings rather than current profitability.

Here's a breakdown of factors to consider:

• Price-to-Book (P/B) Ratio: The Price-to-Book ratio is one of the metrics to look at, which compares a company's market capitalization to its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): Similar to the P/E ratio, EV/EBITDA is less relevant for companies without positive EBITDA.

Analyzing TScan Therapeutics, Inc. (TCRX) stock price trends provides insights into market sentiment and investor confidence. According to the latest information, the stock has shown considerable volatility. As of recent data, TCRX's stock price is trading around $3.74. Reviewing the stock's performance over the past year, we observe fluctuations reflecting broader market trends and company-specific announcements.

Here's a snapshot of TCRX's stock performance over the last 12 months:

• One-Year Performance: The stock has experienced volatility with highs and lows influenced by clinical trial updates and financial announcements.
• Recent Trends: Recent trading patterns suggest a mix of investor optimism and caution, typical for biotech firms undergoing clinical development.

Given that TScan Therapeutics, Inc. (TCRX) does not currently offer dividends, dividend yield and payout ratios are not applicable. Companies in the growth phase, particularly in the biotech industry, often reinvest earnings into research and development rather than distributing dividends.

Analyst consensus is a critical factor in assessing stock valuation. As of now, analyst ratings vary, reflecting the inherent uncertainty in biotech investments. These ratings typically fall into the categories of buy, hold, or sell.

Here’s what analysts consider:

• Buy Ratings: Analysts giving a buy rating likely see significant upside potential based on the company's pipeline and clinical trial progress.
• Hold Ratings: A hold rating suggests a neutral stance, indicating that the stock is fairly valued at its current price, with neither strong catalysts for growth nor significant risks.
• Sell Ratings: Sell ratings may indicate concerns about the company's financial stability, clinical trial results, or competitive landscape.

For a deeper dive into investor profiles and buying trends, explore Exploring TScan Therapeutics, Inc. (TCRX) Investor Profile: Who’s Buying and Why?

TScan Therapeutics, Inc. (TCRX) Risk Factors

Investing in TScan Therapeutics, Inc. (TCRX) involves navigating a landscape of potential risks that could significantly impact the company's financial health and future prospects. These risks span internal operational challenges and external market dynamics, demanding careful consideration from investors.

Here's an overview of the key risks:

• Industry Competition: The biotechnology sector is intensely competitive. TScan faces competition from other companies developing cancer therapies, some of which may have greater financial and technical resources. This competition could result in slower market adoption of TScan's therapies or lower market share.
• Regulatory Changes: The development and commercialization of new therapies are subject to extensive regulation by government agencies like the FDA. Changes in regulatory policies or delays in obtaining regulatory approvals can significantly impact TScan's timelines and increase costs.
• Market Conditions: Broader economic downturns or shifts in investor sentiment towards the biotechnology industry can affect TScan's ability to raise capital and impact its stock price. Unfavorable market conditions can also reduce the willingness of healthcare providers and patients to adopt new therapies.

Some specific operational, financial, and strategic risks highlighted in TScan Therapeutics, Inc.'s filings include:

• Clinical Trial Risks: The success of TScan heavily relies on positive outcomes from its clinical trials. Unfavorable results, delays, or difficulties in enrolling patients could derail the development of its therapies and negatively impact its financial position.
• Manufacturing Risks: Producing cell therapies is complex and requires specialized manufacturing capabilities. Any disruptions in TScan's manufacturing processes or issues with product quality could lead to supply shortages, increased costs, and delays in delivering therapies to patients.
• Financial Risks: TScan Therapeutics, Inc. (TCRX) will require additional capital to fund its operations and clinical trials. There’s no guarantee that additional financing will be available when needed or under acceptable terms. Failure to secure adequate funding could force the company to delay, reduce, or eliminate some of its programs.

Mitigation strategies or plans TScan Therapeutics, Inc. (TCRX) may employ to address these risks could include:

• Diversifying Pipeline: Developing multiple therapeutic candidates can reduce the company's reliance on the success of a single therapy.
• Strategic Partnerships: Collaborating with other companies or research institutions can share the risks and costs associated with drug development.
• Proactive Regulatory Engagement: Maintaining open communication with regulatory agencies and addressing potential concerns early on can help streamline the approval process.

For further insights into TScan Therapeutics, Inc.'s (TCRX) mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of TScan Therapeutics, Inc. (TCRX).

TScan Therapeutics, Inc. (TCRX) Growth Opportunities

TScan Therapeutics, Inc. (TCRX) is focused on discovering and developing T-cell receptor (TCR)-engineered T cell therapies (TCR-T) to treat a variety of cancers. Future growth prospects hinge on several key factors, including product innovation, market expansion, strategic initiatives, and competitive advantages.

Analysis of key growth drivers:

• Product Innovations: TScan's ability to develop and refine its TCR-T platform is central to its growth. This includes identifying new cancer targets and engineering more effective T cell therapies.
• Market Expansion: Expanding the range of treatable cancers and geographic reach will be critical. This could involve moving into solid tumors, which represent a significant unmet need, or entering new markets outside of the United States.
• Acquisitions: No acquisitions are mentioned in the provided search results.

Future revenue growth projections and earnings estimates are not available in the search results. Investors should consult TScan's financial reports and investor presentations for detailed financial forecasts.

Strategic initiatives or partnerships that may drive future growth:

• Strategic Partnerships: Collaborations with other biotech or pharmaceutical companies can accelerate the development and commercialization of TScan's therapies. These partnerships can provide funding, resources, and expertise that TScan may not possess internally.
• Clinical Trial Advancement: Successfully advancing its clinical trials is crucial. Positive data readouts can lead to increased investor confidence, regulatory approvals, and ultimately, product sales.

Competitive advantages that position the company for growth:

• TCR-T Platform: TScan's platform for identifying and engineering TCR-Ts gives it a competitive edge. This platform allows the company to target a wide range of cancers and develop personalized therapies tailored to individual patients.
• Focus on Solid Tumors: Many companies developing cell therapies focus on hematological malignancies. TScan's focus on solid tumors, which are more challenging to treat, could give it a first-mover advantage in this space.

For further insights into TScan Therapeutics, Inc. (TCRX), explore: Mission Statement, Vision, & Core Values of TScan Therapeutics, Inc. (TCRX).