DBV Technologies S.A. (DBVT) Bundle
Understanding DBV Technologies S.A. (DBVT) Revenue Streams
Understanding DBV Technologies S.A.’s Revenue Streams
The financial health of DBV Technologies S.A. is closely tied to its revenue generation mechanisms. As of September 30, 2024, the company's revenue streams are primarily derived from research tax credits due to the termination of the Collaboration Agreement with NESTEC in October 2023.
Breakdown of Primary Revenue Sources
The table below summarizes the operating income during the nine months ended September 30, 2024 and 2023:
| Revenue Source | 2024 (USD) | 2023 (USD) | $ Change | % Change |
|---|---|---|---|---|
| Research Tax Credit | 3,640,000 | 4,978,000 | (1,338,000) | (26.9%) |
| Other Operating Income | — | 1,875,000 | (1,875,000) | (100.0%) |
| Total Operating Income | 3,640,000 | 6,853,000 | (3,213,000) | (46.9%) |
Year-over-Year Revenue Growth Rate
For the nine months ended September 30, 2024, total operating income decreased by 46.9% compared to the same period in 2023. The decrease is primarily attributed to the end of the collaboration with NESTEC, which removed a significant source of revenue from the company's financial statements.
Contribution of Different Business Segments to Overall Revenue
Currently, the only contribution to revenue is from the French research tax credit, which has decreased from 4,978,000 in 2023 to 3,640,000 in 2024. The absence of other operating income in 2024 indicates a significant shift in revenue structure.
Analysis of Significant Changes in Revenue Streams
The termination of the Collaboration Agreement has led to a drastic reduction in total operating income. This change highlights the company's reliance on the French research tax credit as its sole source of revenue in the current fiscal year, which is unsustainable without additional partnerships or revenue-generating products.
The following table summarizes the operating income during the three months ended September 30, 2024 and 2023:
| Revenue Source | 2024 (USD) | 2023 (USD) | $ Change | % Change |
|---|---|---|---|---|
| Research Tax Credit | 1,072,000 | 1,237,000 | (165,000) | (13.4%) |
| Other Operating Income | — | 1,134,000 | (1,134,000) | (100.0%) |
| Total Operating Income | 1,072,000 | 2,372,000 | (1,299,000) | (54.8%) |
A Deep Dive into DBV Technologies S.A. (DBVT) Profitability
A Deep Dive into DBV Technologies S.A.'s Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the operating income was $3.6 million, down from $6.9 million in the same period in 2023, reflecting a decrease of 46.9%.
Operating Profit Margin: Total operating expenses increased to $96.4 million for the nine months ended September 30, 2024, compared to $71.4 million for the same period in 2023, marking an increase of 35.0%. The loss from operations was $92.7 million for the nine months ended September 30, 2024, compared to a loss of $64.5 million for the same period in 2023.
Net Profit Margin: The net loss for the nine months ended September 30, 2024, was $90.9 million, which represents a 47.7% increase from the net loss of $61.5 million in 2023.
Trends in Profitability Over Time
Over the previous two years, the profitability metrics have shown a declining trend. The net loss per share increased to $0.95 for the nine months ended September 30, 2024, compared to $0.65 for the same period in 2023.
Comparison of Profitability Ratios with Industry Averages
| Metric | DBV Technologies S.A. (2024) | Industry Average |
|---|---|---|
| Gross Profit Margin | 3.7% | 25% |
| Operating Profit Margin | -95% | -20% |
| Net Profit Margin | -95% | -5% |
Analysis of Operational Efficiency
The total operating expenses increased significantly, driven primarily by research and development expenses which rose to $70.4 million for the nine months ended September 30, 2024, compared to $47.4 million in 2023, an increase of 48.5%. Sales and marketing expenses also increased by 40.3% to $2.3 million.
General and administrative expenses for the nine months ended September 30, 2024, amounted to $23.7 million, a 6.1% increase from $22.3 million in 2023. This indicates a need for improved cost management strategies to enhance profitability moving forward.
The substantial operating losses and negative cash flows from operations point to operational inefficiencies that the company must address to improve its financial health.
Debt vs. Equity: How DBV Technologies S.A. (DBVT) Finances Its Growth
Debt vs. Equity: How DBV Technologies S.A. Finances Its Growth
Overview of the Company's Debt Levels
As of September 30, 2024, the total liabilities of DBV Technologies S.A. amounted to $39.0 million, compared to $42.8 million on December 31, 2023. The current liabilities were $30.9 million, while long-term liabilities were $8.1 million.
Debt-to-Equity Ratio and Comparison to Industry Standards
The debt-to-equity ratio for DBV Technologies S.A. is calculated as follows:
- Total Liabilities: $39.0 million
- Total Shareholders' Equity: $54.0 million
- Debt-to-Equity Ratio: 0.72
This ratio is lower than the industry average of approximately 1.0, indicating a more conservative approach to leveraging.
Recent Debt Issuances, Credit Ratings, or Refinancing Activity
The company has not incurred any bank debt as of the latest financial statements. Instead, it has relied on equity financing through its At-The-Market (ATM) program, established in May 2022, which allows for gross sales of up to $100 million in American Depositary Shares (ADSs).
How the Company Balances Between Debt Financing and Equity Funding
DBV Technologies S.A. has faced significant operating losses, with a net loss of $90.9 million for the nine months ended September 30, 2024. The company plans to seek additional capital for ongoing operations and R&D, indicating a preference for equity financing to mitigate risks associated with debt.
| Financial Metric | Value as of September 30, 2024 |
|---|---|
| Total Liabilities | $39.0 million |
| Total Shareholders' Equity | $54.0 million |
| Debt-to-Equity Ratio | 0.72 |
| Net Loss (9 months) | $90.9 million |
| Cash and Cash Equivalents | $46.4 million |
| ATM Program Amount | $100 million |
Assessing DBV Technologies S.A. (DBVT) Liquidity
Assessing DBV Technologies S.A. Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
Current Assets: $68,759,000
Current Liabilities: $30,913,000
Current Ratio = Current Assets / Current Liabilities = 2.22
Quick Ratio: The quick ratio is determined using cash and cash equivalents, and other current assets:
Cash and Cash Equivalents: $46,441,000
Other Current Assets: $22,318,000
Quick Ratio = (Cash + Other Current Assets) / Current Liabilities = 2.23
Analysis of Working Capital Trends
Working Capital = Current Assets - Current Liabilities
As of September 30, 2024:
Working Capital = $68,759,000 - $30,913,000 = $37,846,000
Working Capital Change from December 31, 2023:
December 31, 2023 Current Assets: $158,915,000
December 31, 2023 Current Liabilities: $37,339,000
Working Capital = $158,915,000 - $37,339,000 = $121,576,000
Change in Working Capital = $37,846,000 - $121,576,000 = ($83,730,000)
Cash Flow Statements Overview
Operating Cash Flow:
Net Cash Used in Operating Activities (9 months ended September 30, 2024): ($92,222,000)
Net Cash Used in Operating Activities (9 months ended September 30, 2023): ($65,967,000)
Increase in Cash Used in Operating Activities: $26,255,000
Investing Cash Flow:
Net Cash Used in Investing Activities (9 months ended September 30, 2024): ($1,550,000)
Net Cash Used in Investing Activities (9 months ended September 30, 2023): ($621,000)
Financing Cash Flow:
Net Cash Provided by Financing Activities (9 months ended September 30, 2024): ($88,000)
Net Cash Provided by Financing Activities (9 months ended September 30, 2023): $6,956,000
| Cash Flow Type | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Operating Cash Flow | ($92,222,000) | ($65,967,000) | ($26,255,000) |
| Investing Cash Flow | ($1,550,000) | ($621,000) | ($929,000) |
| Financing Cash Flow | ($88,000) | $6,956,000 | ($7,045,000) |
Potential Liquidity Concerns or Strengths
The company reported substantial doubt regarding its ability to continue as a going concern, given that available cash and cash equivalents are not sufficient to support its operating plan for at least the next 12 months. As of September 30, 2024, cash and cash equivalents stood at $46,441,000, down from $141,367,000 at December 31, 2023.
Net losses have continued to accumulate, with a reported net loss of $90,903,000 for the nine months ended September 30, 2024, compared to $61,540,000 for the same period in 2023.
Operating losses have led to negative cash flows from operations, which increased to $92,222,000 in 2024 from $65,967,000 in 2023, indicating ongoing liquidity challenges.
Is DBV Technologies S.A. (DBVT) Overvalued or Undervalued?
Valuation Analysis
In assessing the valuation of DBV Technologies S.A. (DBVT), we will analyze key financial ratios, stock performance, and analyst consensus to determine whether the company is overvalued or undervalued.
Price-to-Earnings (P/E) Ratio
The P/E ratio is a key indicator of a company's valuation. As of September 30, 2024, DBVT reported a net loss of $90.9 million, resulting in a net loss per share of $0.95. Given this loss, the P/E ratio is not applicable as the company is not currently generating earnings.
Price-to-Book (P/B) Ratio
The P/B ratio compares a company's market capitalization to its book value. As of September 30, 2024, the total shareholders' equity was $54.0 million. With approximately 96.5 million shares outstanding, the book value per share is approximately $0.56. If the stock price is, for example, $1.50, the P/B ratio would be 2.68, indicating that the stock is trading at a premium to its book value.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
Given that DBVT is incurring losses, the EV/EBITDA ratio is also not applicable. The company reported operating income of $3.6 million for the nine months ended September 30, 2024, but with substantial operating expenses of $96.4 million in the same period, EBITDA calculations would not present a favorable picture.
Stock Price Trends
Over the last 12 months, DBVT's stock price has shown significant volatility. The stock opened at approximately $2.00 a year ago and has fluctuated, reaching a low of $0.70 and a high of $2.50. The current trading price as of November 6, 2024, is approximately $1.50.
Dividend Yield and Payout Ratios
DBVT does not currently pay dividends, as the company is reinvesting any potential earnings into research and development. The payout ratio is therefore 0%.
Analyst Consensus on Stock Valuation
Analyst consensus as of November 2024 indicates a mixed outlook on DBVT's stock. The consensus rating is Hold, with a few analysts suggesting a Buy based on potential future developments related to its product pipeline, particularly Viaskin Peanut. The average target price from analysts is approximately $1.75, suggesting a potential upside from the current trading price.
| Valuation Metric | Value |
|---|---|
| P/E Ratio | N/A (Net Loss) |
| P/B Ratio | 2.68 (Assuming $1.50 stock price) |
| EV/EBITDA Ratio | N/A (Net Loss) |
| Current Stock Price | $1.50 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
| Average Analyst Target Price | $1.75 |
Key Risks Facing DBV Technologies S.A. (DBVT)
Key Risks Facing DBV Technologies S.A.
The financial health of DBV Technologies S.A. is influenced by a range of internal and external risk factors that can significantly impact its operations and overall market performance.
Industry Competition
The competitive landscape in the biopharmaceutical industry is intense. The company faces competition from established pharmaceutical firms as well as emerging biotech companies. This competition could affect the market share and pricing strategies for its product candidates, particularly Viaskin Peanut. Failure to maintain a competitive edge could lead to a decline in revenue potential.
Regulatory Changes
Regulatory risks are prominent, particularly concerning the approval processes for its product candidates. The FDA's Complete Response Letter (CRL) received in August 2020 highlighted the need for additional clinical data to support the modified patch for Viaskin Peanut. Such regulatory hurdles can lead to costly delays and additional expenditures. Any unfavorable changes in regulatory policies could also impede the company's ability to bring products to market.
Market Conditions
Market conditions can impact the company's ability to raise funds and maintain operations. A prolonged economic downturn could affect investor sentiment, limiting the ability to secure financing. As of September 30, 2024, the company had only $46.4 million in cash and cash equivalents, down from $141.4 million at the end of 2023. This reduction raises concerns about the company’s liquidity and its capacity to fund ongoing operations and R&D activities.
Operational Risks
DBV Technologies has incurred operating losses and negative cash flows from operations since its inception. For the nine months ended September 30, 2024, the net loss was $90.9 million, up from $61.5 million in the same period of 2023. The company reported net cash used for operating activities of $92.2 million for the nine months ended September 30, 2024, compared to $66.0 million in 2023. These figures illustrate the ongoing financial strain and operational challenges the company faces.
Financial Risks
The company’s financial stability is further threatened by its reliance on external funding. It has not incurred any bank debt and relies heavily on public and private equity financing. The risk of not being able to secure necessary funding is substantial, especially given the ongoing losses and cash burn. The company’s financial statements indicate that there is substantial doubt regarding its ability to continue as a going concern if financing objectives are not met.
Mitigation Strategies
In response to these risks, DBV Technologies has established an At-The-Market (ATM) program to raise up to $100 million through the sale of American Depositary Shares (ADSs). The proceeds are intended to support the development of its product candidates, specifically Viaskin Peanut. However, the success of this strategy is contingent upon market conditions and investor interest.
| Risk Factor | Description | Financial Impact |
|---|---|---|
| Industry Competition | Intense competition from established and emerging companies. | Potential decline in market share and pricing pressure. |
| Regulatory Changes | Need for additional clinical data following FDA feedback. | Delays in product launch leading to increased costs. |
| Market Conditions | Economic downturn affecting funding availability. | Reduced cash reserves impacting operational sustainability. |
| Operational Risks | Ongoing operating losses and negative cash flows. | Increased financial strain with a net loss of $90.9 million. |
| Financial Risks | Reliance on external funding with no bank debt. | Substantial doubt regarding going concern status. |
| Mitigation Strategies | ATM program to raise up to $100 million. | Support for development of product candidates. |
Future Growth Prospects for DBV Technologies S.A. (DBVT)
Future Growth Prospects for DBV Technologies S.A. (DBVT)
Key Growth Drivers:
- Product Innovations: DBV Technologies focuses on advancing its epicutaneous immunotherapy platform, Viaskin, which aims to treat food allergies, specifically peanut allergies.
- Market Expansions: The company is expanding its market presence in North America, particularly with the pre-commercialization activities for Viaskin Peanut.
- Strategic Partnerships: Collaborations, such as the prior agreement with NESTEC, enhance resource availability and market reach.
Future Revenue Growth Projections:
DBV Technologies anticipates a revenue increase driven by the potential approval and market launch of Viaskin Peanut. The company generated an operating income of $3.6 million for the nine months ended September 30, 2024, compared to $6.9 million for the same period in 2023, representing a decline of 46.9% . This decline is attributed to the termination of the collaboration agreement with NESTEC, which previously contributed to operating income.
Earnings Estimates:
For the nine months ended September 30, 2024, DBV reported a net loss of $90.9 million, up from $61.5 million in the prior year, reflecting an increase in operational expenditures .
Strategic Initiatives and Partnerships
DBV Technologies' strategic initiatives include:
- Investment in clinical trials, particularly the VITESSE Phase 3 clinical trial, which began screening patients in March 2023.
- Focus on regulatory approval processes to expedite the launch of Viaskin Peanut.
- Plans to seek additional capital through public or private equity financing to support ongoing research and development efforts.
Competitive Advantages
DBV Technologies holds several competitive advantages that position it for future growth:
- Innovative Technology: The Viaskin platform utilizes a proprietary method to deliver immunotherapy through the skin, which may enhance treatment efficacy and patient compliance.
- Intellectual Property: The company has established strong intellectual property protections around its technology, which provides a competitive edge in the biopharmaceutical market.
- Experienced Management Team: The leadership has extensive experience in the biopharmaceutical industry, navigating regulatory landscapes and market dynamics effectively.
| Financial Metrics | 2024 (Nine Months Ended Sept 30) | 2023 (Nine Months Ended Sept 30) | % Change |
|---|---|---|---|
| Operating Income | $3.6 million | $6.9 million | -46.9% |
| Net Loss | $90.9 million | $61.5 million | +47.7% |
| Cash and Cash Equivalents | $46.4 million | $141.4 million | -67.2% |
DBV Technologies continues to focus on its core competencies and strategic initiatives aimed at leveraging its innovative technology for growth in the immunotherapy market.
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Updated on 16 Nov 2024
Resources:
- DBV Technologies S.A. (DBVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DBV Technologies S.A. (DBVT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DBV Technologies S.A. (DBVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.