Entera Bio Ltd. (ENTX) Bundle
Understanding Entera Bio Ltd. (ENTX) Revenue Streams
Understanding Entera Bio Ltd.’s Revenue Streams
The company recognized total revenues of $42 thousand for the three months ended September 30, 2024, attributable to research services provided under a research services agreement. For the same period in 2023, no revenue was recognized.
For the nine months ended September 30, 2024, total revenues amounted to $99 thousand, again from research services, with no revenue recorded for the same period in 2023.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate for the three months ended September 30, 2024, compared to the same period in 2023, reflects a 100% increase as revenue was previously nonexistent. For the nine months ended September 30, 2024, the growth rate is also 100% compared to 2023.
Contribution of Different Business Segments to Overall Revenue
All revenue recognized during the periods analyzed was derived from research services. There were no contributions from product sales or other services, emphasizing the company's focus on research agreements at this stage of its operations.
Analysis of Significant Changes in Revenue Streams
Historically, the company had not generated revenue from its operations until the recent recognition of revenues in 2024. This shift to revenue generation marks a significant change in the company’s financial landscape, indicating a potential transition towards broader operational capabilities.
| Period | Revenues | Cost of Revenues | Gross Profit | Operating Loss |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $42,000 | $42,000 | $0 | $3,021,000 |
| Three Months Ended September 30, 2023 | $0 | $0 | $0 | $2,386,000 |
| Nine Months Ended September 30, 2024 | $99,000 | $90,000 | $9,000 | $7,248,000 |
| Nine Months Ended September 30, 2023 | $0 | $0 | $0 | $6,928,000 |
This table summarizes the revenue and cost structure over the specified periods, illustrating the transition from no revenue to the current revenue figures, along with the associated costs and operating losses. The consistent operating losses highlight the ongoing investment in research and development despite the newly recognized revenue.
A Deep Dive into Entera Bio Ltd. (ENTX) Profitability
A Deep Dive into Entera Bio Ltd.'s Profitability
Gross Profit: For the nine months ended September 30, 2024, the gross profit was $9,000, compared to $0 for the same period in 2023. For the three months ended September 30, 2024, the gross profit was $0, unchanged from the previous year.
Operating Profit: The operating loss for the nine months ended September 30, 2024, was $7,248,000, compared to $6,928,000 for the same period in 2023. For the three months ended September 30, 2024, the operating loss was $3,021,000, compared to $2,386,000 in 2023.
Net Profit: The net loss for the nine months ended September 30, 2024, was $7,183,000, compared to $6,894,000 for the same period in 2023. For the three months ended September 30, 2024, the net loss was $3,021,000, compared to $2,379,000 in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $42,000 | $0 | $99,000 | $0 |
| Cost of Revenues | $42,000 | $0 | $90,000 | $0 |
| Gross Profit | $0 | $0 | $9,000 | $0 |
| Operating Expenses | $3,021,000 | $2,386,000 | $7,257,000 | $6,928,000 |
| Operating Loss | $3,021,000 | $2,386,000 | $7,248,000 | $6,928,000 |
| Net Loss | $3,021,000 | $2,379,000 | $7,183,000 | $6,894,000 |
Profitability Trends: The operating loss increased by 5% from $6,928,000 in the first nine months of 2023 to $7,248,000 in 2024, indicating a downward trend in profitability. The net loss also increased by 4% during the same period.
Industry Comparison: The average net profit margin for the biotechnology industry is typically negative due to high R&D costs. However, the specific ratio for Entera Bio Ltd. remains significantly below the industry average.
Operational Efficiency: The research and development expenses for the nine months ended September 30, 2024, were $3,298,000, a decrease of 6% from $3,510,000 in 2023. General and administrative expenses increased by 14% to $3,959,000 in 2024 from $3,457,000 in 2023.
| Expense Type | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| R&D Expenses | $3,298,000 | $3,510,000 | ($212,000) | (6%) |
| G&A Expenses | $3,959,000 | $3,457,000 | $502,000 | 14% |
Debt vs. Equity: How Entera Bio Ltd. (ENTX) Finances Its Growth
Debt vs. Equity: How Entera Bio Ltd. Finances Its Growth
Overview of the Company's Debt Levels
As of September 30, 2024, Entera Bio Ltd. had total liabilities amounting to $1.29 million. This included current liabilities of $1.11 million and non-current liabilities of $0.178 million. The current liabilities comprised of accounts payable at $0.184 million, accrued expenses and other payables at $0.765 million, and current maturities of operating lease liabilities at $0.162 million.
Debt-to-Equity Ratio
The debt-to-equity ratio for Entera Bio Ltd. as of September 30, 2024, was calculated to be 0.20, derived from total liabilities of $1.29 million and total shareholders' equity of $6.45 million. This ratio is significantly lower than the industry average for biotechnology firms, which typically ranges between 0.50 and 1.00.
Recent Debt Issuances and Credit Ratings
Entera Bio Ltd. has not reported any new debt issuances or changes in credit ratings as of the latest financial reports. The company has relied primarily on equity financing, raising a total of $93.1 million since its inception, which includes $26.5 million through at-the-market-offering (ATM) programs.
Equity Offerings
- In 2022, Entera Bio Ltd. initiated an ATM program that allows for the sale of up to 5,000,000 Ordinary Shares.
- By September 30, 2024, the company had sold 240,156 shares under this program, generating proceeds of $0.6 million.
Balancing Debt Financing and Equity Funding
Entera Bio Ltd. maintains a conservative approach toward debt, focusing on equity funding to finance its operations and growth. As of September 30, 2024, the company reported cash and cash equivalents of $6.9 million, which are intended to support ongoing research and development. The management has indicated that they expect to sustain operations into the third quarter of 2025 without the need for additional funding, although they acknowledge the potential need for further capital.
| Financial Metric | Value (in millions) |
|---|---|
| Total Liabilities | $1.29 |
| Current Liabilities | $1.11 |
| Non-Current Liabilities | $0.178 |
| Total Shareholders' Equity | $6.45 |
| Debt-to-Equity Ratio | 0.20 |
| Cash and Cash Equivalents | $6.9 |
| Total Raised Since Inception | $93.1 |
Assessing Entera Bio Ltd. (ENTX) Liquidity
Assessing Entera Bio Ltd.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio stands at 6.19, calculated from current assets of $6.9 million and current liabilities of $1.1 million.
Quick Ratio: The quick ratio is 6.19, as there are no inventories to account for, thus current assets equal cash and cash equivalents.
Analysis of Working Capital Trends
As of September 30, 2024, the working capital is $5.8 million, derived from current assets of $6.9 million minus current liabilities of $1.1 million. This represents an increase from $5.3 million in the previous year.
| Period | Current Assets (in millions) | Current Liabilities (in millions) | Working Capital (in millions) |
|---|---|---|---|
| September 30, 2024 | $6.9 | $1.1 | $5.8 |
| September 30, 2023 | $5.8 | $1.5 | $4.3 |
Cash Flow Statements Overview
Operating Cash Flow: For the nine months ended September 30, 2024, net cash used in operating activities was $(5.4 million), compared to $(4.7 million) in the same period of 2023.
Investing Cash Flow: There were no cash flows from investing activities for the nine months ended September 30, 2024, consistent with $(12,000) in 2023.
Financing Cash Flow: Net cash provided by financing activities was $1.3 million for the nine months ended September 30, 2024, up from $5,000 in 2023.
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $(5.4) | $(4.7) |
| Investing Cash Flow | $0.0 | $(0.012) |
| Financing Cash Flow | $1.3 | $0.005 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company holds $6.9 million in cash and cash equivalents. Despite having sufficient capital to fund operations into the third quarter of 2025, recurring operational losses and negative cash flows pose liquidity concerns. The accumulated deficit has reached $111.6 million, raising doubts about the company's ability to continue as a going concern.
Is Entera Bio Ltd. (ENTX) Overvalued or Undervalued?
Valuation Analysis
Valuation ratios are critical in assessing whether a company is overvalued or undervalued. Here, we will explore the price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for the company.
Price-to-Earnings (P/E) Ratio
The P/E ratio is calculated by dividing the current market price per share by the earnings per share (EPS). As of September 30, 2024, the company reported a net loss of $7.183 million, which translates to a basic loss per share of $0.19. Given that the company is currently not profitable, the P/E ratio is not applicable.
Price-to-Book (P/B) Ratio
The P/B ratio is calculated by dividing the market capitalization by the book value of equity. As of September 30, 2024, the total shareholders' equity was $6.452 million and the number of shares outstanding was 36,512,214. If the stock price is, for example, $0.55, the market capitalization would be approximately $20.1 million. The P/B ratio would then be:
| Market Capitalization | Book Value of Equity | P/B Ratio |
|---|---|---|
| $20.1 million | $6.452 million | 3.11 |
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is calculated by taking the enterprise value (EV) and dividing it by earnings before interest, taxes, depreciation, and amortization (EBITDA). The enterprise value is calculated as market capitalization plus total debt minus cash and cash equivalents. As of September 30, 2024, cash and cash equivalents amounted to $6.9 million. Assuming total debt is negligible, the EV would be approximately $20.1 million. With an operating loss of $7.248 million, the EBITDA would also reflect a negative value, indicating that the EV/EBITDA ratio is not applicable as well.
Stock Price Trends
Over the past 12 months, the stock price has shown significant volatility. The stock opened at approximately $0.75 and has fluctuated to a low of $0.40 and a high of $1.00. As of the latest reporting, it is trading around $0.55.
Dividend Yield and Payout Ratios
The company does not currently pay a dividend, as it is reinvesting its resources into research and development. Therefore, the dividend yield and payout ratios are 0%.
Analyst Consensus on Stock Valuation
Analysts currently have a mixed view on the stock. The consensus rating is a Hold, with several analysts expressing concerns over the company's ability to generate consistent revenue and manage its operational losses.
The financial data presented above illustrates the valuation metrics and trends for the company as of September 2024. Investors should consider these insights when making decisions regarding the stock's potential value.
Key Risks Facing Entera Bio Ltd. (ENTX)
Key Risks Facing Entera Bio Ltd. (ENTX)
Overview of Internal and External Risks
Entera Bio Ltd. faces several risks that could significantly impact its financial health. These include:
- Industry Competition: The biopharmaceutical industry is highly competitive, with numerous companies vying for market share. This competition could affect Entera's ability to successfully develop and commercialize its product candidates.
- Regulatory Changes: The company is subject to stringent regulations from authorities such as the FDA. Any changes in regulatory policies could delay product approvals and increase operational costs.
- Market Conditions: Economic fluctuations and market sentiment can affect funding opportunities and investor confidence, impacting the company's ability to raise capital for ongoing research and development.
Operational, Financial, and Strategic Risks
In its latest earnings report, Entera Bio highlighted several operational and financial risks:
- As of September 30, 2024, the company reported an accumulated deficit of $111.6 million.
- Operating losses for the nine months ended September 30, 2024, were $7.2 million, compared to $6.9 million for the same period in 2023.
- The company has not generated significant revenue, reporting only $99,000 for the nine months ended September 30, 2024, compared to $0 in the prior year.
Mitigation Strategies
To address these risks, Entera Bio has outlined several strategies:
- The company plans to raise additional capital through various means, including private or public equity offerings, debt financings, and strategic collaborations. However, there is no certainty about the availability of such funds on favorable terms.
- As of September 30, 2024, Entera Bio had cash and cash equivalents of $6.9 million, which it believes will be sufficient to meet projected operating requirements into the third quarter of 2025.
| Risk Factor | Description | Financial Impact (as of Sept 30, 2024) |
|---|---|---|
| Accumulated Deficit | Reflects total losses incurred since inception. | $111.6 million |
| Operating Losses | Losses reported for the nine months ended September 30, 2024. | $7.2 million |
| Revenue Generation | Revenue from research services provided. | $99,000 |
| Cash Position | Available cash to fund operations. | $6.9 million |
In conclusion, Entera Bio Ltd. faces a range of risks that could impact its financial health, including competitive pressures, regulatory challenges, and the necessity for ongoing funding. The management's ability to successfully navigate these risks will be critical for the company's future viability and growth potential.
Future Growth Prospects for Entera Bio Ltd. (ENTX)
Future Growth Prospects for Entera Bio Ltd.
Analysis of Key Growth Drivers
Entera Bio Ltd. is positioned for potential growth through several key drivers:
- Product Innovations: The company is actively developing its N-Tab™ technology platform, focusing on oral delivery of large molecules, which is expected to enhance the marketability of its product candidates such as EB613 and EB612.
- Market Expansions: Entera is targeting the osteoporosis market with EB613, which is currently in preparation for a Phase 3 clinical study, indicating a significant market opportunity with a projected CAGR of 4.5% through 2028 in the osteoporosis treatment market.
- Acquisitions and Collaborations: The company has engaged in a collaborative research agreement with OPKO Health, focusing on GLP-2 and OXM, which may lead to synergistic advancements and shared resources.
Future Revenue Growth Projections and Earnings Estimates
For the nine months ended September 30, 2024, Entera Bio reported revenues of $99 thousand, a substantial increase of 100% compared to the same period in 2023 when revenues were non-existent. Analysts project that with the advancement of clinical trials and potential regulatory approvals, the company could see revenues grow exponentially in the coming years, especially with successful commercialization of its products.
Strategic Initiatives or Partnerships That May Drive Future Growth
Strategic partnerships are crucial for Entera's growth trajectory:
- The collaboration with OPKO Health aims to leverage combined expertise in drug development, which could expedite clinical trials and reduce costs.
- Engagement in investor relations through consulting agreements aims to enhance visibility and investment, crucial for funding ongoing R&D efforts.
Competitive Advantages That Position the Company for Growth
Entera Bio has several competitive advantages:
- Innovative Technology: The N-Tab™ technology is designed to improve the bioavailability of large molecules, giving the company a unique edge in drug delivery systems.
- Experienced Management Team: The management team possesses extensive experience in biotechnology, which is critical for navigating complex regulatory environments and clinical trials.
- Strong Intellectual Property Portfolio: The company has invested significantly in its patent portfolio, providing a protective moat around its innovations.
Financial Overview
As of September 30, 2024, Entera reported:
- Cash and Cash Equivalents: $6.9 million, sufficient to fund operations into the third quarter of 2025.
- Net Loss: $7.2 million for the nine months ended September 30, 2024, compared to $6.9 million for the same period in 2023.
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $99,000 | $0 | $99,000 | 100% |
| Operating Loss | $7.2 million | $6.9 million | $320,000 | 5% |
| Cash and Cash Equivalents | $6.9 million | $11.1 million | ($4.2 million) | (37.8%) |
Future growth for Entera Bio Ltd. hinges on successful product development, strategic partnerships, and effective market penetration strategies. The company's innovative approach and focus on growth in the osteoporosis market present significant opportunities for investors moving forward.
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Updated on 16 Nov 2024
Resources:
- Entera Bio Ltd. (ENTX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Entera Bio Ltd. (ENTX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Entera Bio Ltd. (ENTX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.