Chimerix, Inc. (CMRX) Bundle
Understanding Chimerix, Inc. (CMRX) Revenue Streams
Understanding Chimerix, Inc.’s Revenue Streams
Chimerix, Inc. generates revenue primarily through contract and grant revenue, along with licensing revenue. The following table summarizes the revenue figures for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Revenue Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|---|---|---|
| Contract and Grant Revenue | $26,000 | $11,000 | 136.4% | $155,000 | $271,000 | (42.8%) |
| Licensing Revenue | $0 | $0 | N/A | $0 | $49,000 | (100.0%) |
| Total Revenues | $26,000 | $11,000 | 136.4% | $155,000 | $320,000 | (51.6%) |
Year-over-Year Revenue Growth Rate
The company saw a significant increase in contract and grant revenue for the three months ended September 30, 2024, rising by 136.4% compared to the same period in 2023. However, for the nine months ended September 30, 2024, total revenue decreased by 51.6% year-over-year, primarily due to the absence of licensing revenue, which dropped to $0 from $49,000 in the previous year.
Contribution of Different Business Segments to Overall Revenue
For the three months ended September 30, 2024, contract and grant revenue constituted the entirety of total revenues at $26,000. Licensing revenue, which has historically contributed to overall revenue, was absent in the recent quarter.
Analysis of Significant Changes in Revenue Streams
The most notable change in revenue streams was the complete absence of licensing revenue, which previously provided some income. This shift is a critical aspect for investors to consider, as it reflects a significant reliance on contract and grant revenue moving forward. The decrease in total revenues for the nine-month period highlights the challenges the company faces in generating consistent revenue from its product pipeline.
As of September 30, 2024, the company has an accumulated deficit of approximately $861.0 million . This indicates ongoing financial challenges and underscores the importance of developing and commercializing its product candidates to achieve future profitability.
A Deep Dive into Chimerix, Inc. (CMRX) Profitability
A Deep Dive into Chimerix, Inc. Profitability
Gross Profit Margin: As of September 30, 2024, the total revenues were $26,000 for the three months ended September 30, 2024, compared to $11,000 for the same period in 2023, indicating an increase of 136.4%. For the nine months ended September 30, 2024, total revenues decreased to $155,000 from $271,000 in 2023, a decline of 42.8%.
Operating Profit Margin: The loss from operations for the three months ended September 30, 2024, was $(24,793,000), down from $(26,689,000) in 2023, reflecting an improvement of 7.1%. For the nine months, the loss from operations was $(72,015,000), slightly better than $(72,255,000) for the same period in 2023.
Net Profit Margin: The net loss for the three months ended September 30, 2024, was $(22,879,000), compared to $(23,986,000) in 2023, marking a 4.6% improvement. For the nine months ended September 30, 2024, the net loss was $(65,433,000), compared to $(63,934,000) in 2023.
Trends in Profitability Over Time
The following table summarizes the profitability metrics over the last two reporting periods:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $26,000 | $11,000 | $155,000 | $271,000 |
| Loss from Operations | $(24,793,000) | $(26,689,000) | $(72,015,000) | $(72,255,000) |
| Net Loss | $(22,879,000) | $(23,986,000) | $(65,433,000) | $(63,934,000) |
Comparison of Profitability Ratios with Industry Averages
As of September 30, 2024, the net loss margin for the company stands at 86.9% for the nine months period, indicating a significant loss compared to the biopharmaceutical industry average net profit margin of approximately 15%. The operating loss margin is also significantly higher than the industry average of around (-20%).
Analysis of Operational Efficiency
Research and Development Expenses: For the three months ended September 30, 2024, R&D expenses were $19,646,000, up from $17,396,000 in 2023, reflecting a 12.9% increase. For the nine months, R&D expenses increased to $56,918,000 from $53,144,000, a 7.1% increase.
General and Administrative Expenses: General and administrative expenses decreased to $5,173,000 for Q3 2024 from $9,304,000 in Q3 2023, a decrease of 44.4%. For the nine months, these expenses decreased to $15,252,000 from $19,431,000, a decline of 21.5%.
The operational efficiency can be further highlighted in the following table:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| R&D Expenses | $19,646,000 | $17,396,000 | $56,918,000 | $53,144,000 |
| G&A Expenses | $5,173,000 | $9,304,000 | $15,252,000 | $19,431,000 |
Debt vs. Equity: How Chimerix, Inc. (CMRX) Finances Its Growth
Debt vs. Equity: How Chimerix, Inc. Finances Its Growth
The financial structure of Chimerix, Inc. is characterized by a distinct balance between debt and equity, essential for its growth and operational needs.
Overview of the Company's Debt Levels
As of September 30, 2024, Chimerix reported total liabilities of $22.9 million compared to $19.7 million at the end of 2023. The current liabilities include:
- Accounts payable: $5.3 million
- Accrued liabilities: $16.9 million
Long-term debt is primarily represented by a revolving loan facility with an aggregate principal amount of up to $50 million, which was amended on November 21, 2023, extending its term to September 30, 2026 .
Debt-to-Equity Ratio and Comparison to Industry Standards
Chimerix's debt-to-equity ratio as of September 30, 2024, stands at approximately 0.13. This is calculated from the total liabilities of $22.9 million and total stockholders' equity of $135.8 million. The industry average for biopharmaceutical companies typically ranges from 0.25 to 0.75, indicating that Chimerix is conservatively financed .
Recent Debt Issuances, Credit Ratings, or Refinancing Activity
Chimerix has not issued any new debt since the amendment of the Loan and Security Agreement. The company has maintained a strong focus on managing its existing debt without incurring additional liabilities. The credit rating from major agencies has not been disclosed, but the company has demonstrated a stable cash position to support its financial obligations.
How the Company Balances Between Debt Financing and Equity Funding
Chimerix has primarily financed its operations through equity, with total stockholders' equity reaching $135.8 million as of September 30, 2024. Recent equity financing activities include:
- Open Market Sale Agreement with Jefferies LLC, allowing for the potential issuance of up to $75 million of common stock .
- Shelf registration statement covering an aggregate offering price of $250 million for various securities .
This strategic balance allows the company to minimize debt while still accessing necessary capital for research and development projects.
Financial Overview Table
| Financial Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Liabilities | $22.9 million | $19.7 million |
| Total Stockholders' Equity | $135.8 million | $193.0 million |
| Debt-to-Equity Ratio | 0.13 | 0.10 |
| Revolving Loan Facility | $50 million | $50 million |
| Equity Financing Potential | $75 million | N/A |
Assessing Chimerix, Inc. (CMRX) Liquidity
Assessing Chimerix, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
| Current Assets | Current Liabilities | Current Ratio |
|---|---|---|
| $140,902,000 | $22,244,000 | 6.32 |
Quick Ratio: The quick ratio also reflects a strong liquidity position:
| Cash and Cash Equivalents | Short-term Investments | Accounts Receivable | Current Liabilities | Quick Ratio |
|---|---|---|---|---|
| $23,645,000 | $112,585,000 | $155,000 | $22,244,000 | 6.18 |
Analysis of Working Capital Trends
As of September 30, 2024, the working capital is:
| Current Assets | Current Liabilities | Working Capital |
|---|---|---|
| $140,902,000 | $22,244,000 | $118,658,000 |
Cash Flow Statements Overview
Operating Cash Flow: For the nine months ended September 30, 2024, net cash used in operating activities was:
| Net Loss | Adjusted Operating Cash Flow |
|---|---|
| ($65,433,000) | ($55,709,000) |
Investing Cash Flow: For the nine months ended September 30, 2024, net cash provided by investing activities was:
| Redemption of Investments | Purchases of Investments | Net Investing Cash Flow |
|---|---|---|
| $143,597,000 | $95,169,000 | $51,349,000 |
Financing Cash Flow: For the nine months ended September 30, 2024, net cash provided by financing activities was:
| Proceeds from Stock Purchases | Debt Issuance Costs | Net Financing Cash Flow |
|---|---|---|
| $600,000 | $258,000 | $344,000 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company had an accumulated deficit of $861,000,000. The total liabilities and stockholders' equity stood at $158,668,000, indicating a solid buffer of cash and investments to meet current obligations.
The company has access to a $50,000,000 revolving credit facility, which remains undrawn as of the same date. This adds an additional layer of liquidity strength, providing potential funding if necessary.
Overall, the liquidity position appears robust, but the persistent losses may require monitoring to ensure sustainable operations.
Is Chimerix, Inc. (CMRX) Overvalued or Undervalued?
Valuation Analysis
In analyzing the valuation of Chimerix, Inc. (CMRX), several key financial metrics are essential for determining whether the company is overvalued or undervalued.
Price-to-Earnings (P/E) Ratio
As of the latest financial reports, the company reported a net loss of $65.4 million for the nine months ended September 30, 2024, leading to a basic and diluted loss per share of $0.73. Given that the company is not currently profitable, the P/E ratio is not applicable.
Price-to-Book (P/B) Ratio
The book value of equity as of September 30, 2024, is $135.8 million, with 89,936,053 shares outstanding. The book value per share is approximately $1.51. If the current stock price is $0.75, the P/B ratio is calculated as:
- P/B Ratio = Stock Price / Book Value per Share = $0.75 / $1.51 = 0.50
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value (EV) can be approximated using the market capitalization and total debt, subtracting cash. As of September 30, 2024, the total debt is $0 and cash and cash equivalents are $23.6 million. Thus, if the market capitalization is $67.5 million (assuming a stock price of $0.75), the EV would be:
- EV = Market Capitalization + Total Debt - Cash = $67.5 million + $0 - $23.6 million = $43.9 million
Since EBITDA is not reported, this ratio cannot be calculated directly.
Stock Price Trends
Over the last 12 months, the stock price has fluctuated significantly, starting at approximately $1.50 and dropping to around $0.75. This decline indicates a downward trend, reflecting market skepticism regarding the company's growth prospects.
Dividend Yield and Payout Ratios
Chimerix does not currently pay dividends, resulting in a dividend yield of 0%. The company has not established a payout ratio as it has not generated profits.
Analyst Consensus
Analyst consensus currently rates the stock as a Hold, reflecting uncertainty in its future profitability and growth potential.
| Metric | Value |
|---|---|
| Net Loss (9 months ended Sept 30, 2024) | $65.4 million |
| Loss per Share | $0.73 |
| Book Value of Equity | $135.8 million |
| Shares Outstanding | 89,936,053 |
| Book Value per Share | $1.51 |
| P/B Ratio | 0.50 |
| Cash and Cash Equivalents | $23.6 million |
| Market Capitalization (approx.) | $67.5 million |
| EV | $43.9 million |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Chimerix, Inc. (CMRX)
Key Risks Facing Chimerix, Inc. (CMRX)
Industry Competition: The biotechnology and pharmaceutical industries are intensely competitive. The company faces competition from both U.S. and international firms, including major pharmaceutical companies and biotechnology firms. Many competitors possess significantly greater financial, technical, and commercial resources, which can hinder the company's ability to compete effectively.
Regulatory Changes: Recent legislative changes, including the Inflation Reduction Act of 2022, may impact pricing strategies and market access for pharmaceutical products. Ongoing legislative reforms could further complicate the approval and commercialization of product candidates.
Financial Condition: The company reported a net loss of $65.4 million for the nine months ended September 30, 2024. The accumulated deficit as of the same date stood at approximately $861.0 million . The ability to generate future revenues is uncertain, and the company may continue to incur significant losses for the foreseeable future.
Liquidity Risks: As of September 30, 2024, the company had approximately $152.4 million available to fund operations . However, there is no assurance that adequate funding will be available in the future, which could necessitate curtailing research or development programs.
Operational Risks: The company relies on third-party manufacturers for the production of clinical supplies. Any disruption in these operations could lead to delays in clinical trials or regulatory approvals . Additionally, manufacturing issues could arise, increasing costs or impairing the commercialization of products.
Market Conditions: The trading price of the company’s common stock has been volatile, affected by various factors including clinical trial results, regulatory reviews, and financial projections . The company is also at risk of delisting from The Nasdaq Global Market if it fails to meet minimum bid price requirements .
Intellectual Property Risks: The ability to protect and maintain intellectual property rights is critical for competitiveness. Failure to secure these rights may impair the company's ability to compete effectively in the market .
Product Liability Risks: The company currently holds product liability insurance coverage of $15 million per occurrence . However, this may not be sufficient to cover potential claims, which could adversely affect financial health.
| Risk Factor | Description | Financial Impact |
|---|---|---|
| Industry Competition | Intense competition from larger firms | Potential loss of market share |
| Regulatory Changes | Changes in drug pricing and approval processes | Increased costs and delays |
| Financial Condition | Significant net losses | Accumulated deficit of $861 million |
| Liquidity Risks | Dependence on external funding | Potential curtailment of operations |
| Operational Risks | Reliance on third-party manufacturers | Delays in clinical trials |
| Market Conditions | Volatility in stock price | Risk of delisting from Nasdaq |
| Intellectual Property Risks | Challenges in securing patents | Increased competition |
| Product Liability Risks | Insurance coverage limitations | Potential financial loss |
Future Growth Prospects for Chimerix, Inc. (CMRX)
Future Growth Prospects for Chimerix, Inc.
Analysis of Key Growth Drivers
Chimerix, Inc. is strategically positioned for growth through various key drivers:
- Product Innovations: The company is focused on the development of dordaviprone for H3 K27M-mutant diffuse glioma. Research and development expenses for the nine months ended September 30, 2024, totaled $56.9 million, a 7.1% increase from $53.1 million in the same period of 2023.
- Market Expansions: Chimerix has entered agreements to expand the development of dordaviprone in Japan through a partnership with Ohara Pharmaceutical Co., Ltd. This partnership includes potential milestone payments of up to $2.5 million.
- Acquisitions: The acquisition of Oncoceutics, Inc. in January 2021 has allowed for the integration of new product candidates into the pipeline, notably ONC206 and ONC212.
Future Revenue Growth Projections and Earnings Estimates
Revenue projections indicate potential growth driven by increased product development and market penetration:
- For the three months ended September 30, 2024, total revenues increased to $26,000 from $11,000 in the same period of 2023, marking a 136.4% increase.
- Contract and grant revenue for the nine months ended September 30, 2024, was $155,000, down from $320,000 in the prior year.
Strategic Initiatives or Partnerships
Strategic initiatives are crucial for driving future growth:
- The partnership with Ohara includes reimbursement for certain development costs, enhancing the company's financial position.
- Chimerix has also entered into a sales agreement with Jefferies LLC to offer up to $75 million in common stock, providing additional capital for operations.
Competitive Advantages
Chimerix's competitive advantages include:
- Strong Intellectual Property Portfolio: The company is focused on maintaining and expanding its intellectual property, crucial for product protection and market exclusivity.
- Established Relationships: Existing partnerships with entities such as Emergent Biodefense Operations and CR Sanjiu provide a foundation for continued revenue through milestone and royalty payments.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $26,000 | $11,000 | 136.4% |
| Research and Development Expenses | $19.6 million | $17.4 million | 12.9% |
| General and Administrative Expenses | $5.2 million | $9.3 million | (44.4%) |
| Net Loss | $22.9 million | $24.0 million | (4.6%) |
| Accumulated Deficit | $860.9 million | $795.5 million | 8.2% |
As of September 30, 2024, Chimerix had a cash balance of $23.6 million and short-term investments of $112.6 million, providing a solid foundation for future growth.
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Resources:
- Chimerix, Inc. (CMRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chimerix, Inc. (CMRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Chimerix, Inc. (CMRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.