IDEAYA Biosciences, Inc. (IDYA) Bundle
Understanding IDEAYA Biosciences, Inc. (IDYA) Revenue Streams
Understanding IDEAYA Biosciences, Inc. (IDYA) Revenue Streams
As of September 30, 2024, the company recognized no revenue for the nine months ended September 30, 2024, compared to $19.5 million for the same period in 2023. The previous revenue was derived from collaboration agreements primarily related to the WRN, Pol Theta, and MAT2A programs, which accounted for $14.5 million, $2.2 million, and $2.8 million respectively.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate indicates a significant decline of 100% in collaboration revenue from $19.5 million in 2023 to $0 in 2024.
Contribution of Different Business Segments to Overall Revenue
In the nine months ended September 30, 2023, the breakdown of collaboration revenue was as follows:
| Program | Revenue (in millions) |
|---|---|
| WRN | $14.5 |
| Pol Theta | $2.2 |
| MAT2A | $2.8 |
Analysis of Significant Changes in Revenue Streams
The most notable change in revenue streams is the complete cessation of collaboration revenue in 2024 following the fulfillment of all performance obligations under the GSK Collaboration Agreement by December 31, 2023. This cessation is a direct result of the company completing its obligations and transitioning towards future milestone payments which are yet to be realized.
Overall, the revenue performance underscores the company's reliance on collaboration agreements, which have not translated into product revenue to date, reflecting the ongoing challenges in progressing products to commercialization.
A Deep Dive into IDEAYA Biosciences, Inc. (IDYA) Profitability
A Deep Dive into IDEAYA Biosciences, Inc. Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the gross profit margin was 0% due to no collaboration revenue recognized, compared to a gross profit margin of 100% for the same period in 2023, when collaboration revenue was $19.5 million.
Operating Profit Margin: The operating profit margin for the nine months ended September 30, 2024 was -118.5%, reflecting a loss from operations of $(182.8 million) on total operating expenses of $182.8 million. In comparison, the operating profit margin for the same period in 2023 was -82.5% with a loss from operations of $(92.5 million).
Net Profit Margin: The net profit margin for the nine months ended September 30, 2024 was -82.9%, with a net loss of $(144.2 million) out of total revenue of $0. The net profit margin for the nine months ended September 30, 2023 was -80.8%, with a net loss of $(79.0 million) against total revenue of $19.5 million.
Trends in Profitability Over Time
Over the last four quarters, the company has shown a declining trend in profitability metrics:
| Period | Gross Profit Margin | Operating Profit Margin | Net Profit Margin |
|---|---|---|---|
| Q3 2024 | 0% | -118.5% | -82.9% |
| Q2 2024 | 0% | -100.5% | -80.3% |
| Q1 2024 | 0% | -90% | -78.4% |
| Q3 2023 | 100% | -82.5% | -80.8% |
Comparison of Profitability Ratios with Industry Averages
The average operating profit margin in the biotechnology industry is approximately -60%. The company’s operating profit margin of -118.5% indicates significant underperformance relative to industry standards. The average net profit margin in the industry is around -20%, highlighting that the net profit margin of -82.9% is considerably worse than the average.
Analysis of Operational Efficiency
Operational efficiency can be evaluated through the company's cost management and gross margin trends:
- Research and Development Expenses: Increased by $63.8 million (or 70%) year-over-year, totaling $154.5 million for the nine months ended September 30, 2024.
- General and Administrative Expenses: Increased by $7.1 million (or 33%), totaling $28.3 million for the same period.
- Gross Margin Trend: The company has maintained a gross margin of 0% due to lack of revenue generation in the recent quarter.
Overall, the company faces significant challenges in managing operational costs while striving to achieve profitability.
Debt vs. Equity: How IDEAYA Biosciences, Inc. (IDYA) Finances Its Growth
Debt vs. Equity: How IDEAYA Biosciences, Inc. Finances Its Growth
As of September 30, 2024, IDEAYA Biosciences, Inc. reported a total accumulated deficit of $492.5 million. The company primarily finances its operations through equity financing rather than debt, reflecting a cautious approach to leveraging.
Overview of the Company's Debt Levels
IDEAYA has maintained minimal long-term and short-term debt levels. As of the latest financial reporting, the company had no long-term debt recorded. This strategy aligns with its focus on raising capital through equity financing, particularly through public offerings.
Debt-to-Equity Ratio and Comparison to Industry Standards
The company’s debt-to-equity ratio stands at 0.00, indicating no reliance on debt financing. This ratio is significantly lower than the industry average for biotechnology firms, which often hover around 0.5 to 1.0. This conservative financial structure may provide IDEAYA with greater flexibility in its operational financing strategies.
Recent Debt Issuances and Credit Ratings
IDEAYA has not engaged in any recent debt issuances or refinancing activities, maintaining a credit rating that reflects its lack of debt obligations. The absence of debt allows the company to avoid interest expenses, focusing instead on equity offerings to fund its growth.
How the Company Balances Between Debt Financing and Equity Funding
IDEAYA has primarily relied on equity funding, particularly through public offerings and collaborations. The company raised $283.8 million from a follow-on public offering completed in July 2024. This equity funding strategy is complemented by milestone payments from collaborations, such as the GSK partnership, which provides additional financial resources without increasing debt levels.
| Financial Metric | Value |
|---|---|
| Accumulated Deficit | $492.5 million |
| Long-term Debt | $0 |
| Short-term Debt | $0 |
| Debt-to-Equity Ratio | 0.00 |
| Recent Equity Raised (July 2024) | $283.8 million |
| Cash, Cash Equivalents, and Marketable Securities | $1.2 billion |
This table summarizes the key financial metrics relevant to IDEAYA's current debt and equity structure, highlighting its focus on equity financing as the primary means of funding its operational and developmental needs.
Assessing IDEAYA Biosciences, Inc. (IDYA) Liquidity
Assessing IDEAYA Biosciences, Inc. Liquidity
The liquidity of IDEAYA Biosciences, Inc. can be assessed through various financial metrics, including current and quick ratios, working capital trends, and cash flow statements.
Current and Quick Ratios
As of September 30, 2024, the company reported:
- Current Assets: $932.2 million
- Current Liabilities: $40.7 million
Current Ratio:
Current Ratio = Current Assets / Current Liabilities = 932.2 / 40.7 = 22.9
Quick Assets (Cash, Cash Equivalents, and Marketable Securities) = $400.3 million + $519.7 million = $920 million
Quick Ratio:
Quick Ratio = Quick Assets / Current Liabilities = 920 / 40.7 = 22.6
Analysis of Working Capital Trends
The working capital can be calculated as follows:
Working Capital = Current Assets - Current Liabilities = 932.2 million - 40.7 million = 891.5 million
Over the past year, working capital has significantly increased, demonstrating a strong liquidity position. The previous year’s working capital was:
Working Capital (2023) = $532.6 million - $27.1 million = $505.5 million
Cash Flow Statements Overview
| Cash Flow Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(125.9 million) | $(91.5 million) |
| Net Cash Used in Investing Activities | $(305.5 million) | $(46.5 million) |
| Net Cash Provided by Financing Activities | $674.8 million | $221.8 million |
| Net Increase in Cash | $243.4 million | $83.8 million |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, IDEAYA had:
- Cash, Cash Equivalents, and Marketable Securities: $1.2 billion
- Accumulated Deficit: $(492.5 million)
The company’s ability to cover its operational expenses for at least 12 months is secured by its liquid assets, despite the ongoing net losses. The interest income has also shown a significant increase, reflecting a robust financial strategy in managing investments:
Interest Income (2024): $38.7 million (up from $13.5 million in 2023)
Overall, IDEAYA's liquidity position is strong, supported by a high current and quick ratio, substantial cash reserves, and a solid framework for financing its operations moving forward.
Is IDEAYA Biosciences, Inc. (IDYA) Overvalued or Undervalued?
Valuation Analysis
As of the end of September 2024, the financial metrics for IDEAYA Biosciences, Inc. (IDYA) reveal critical insights regarding its valuation. Below are the key ratios and trends relevant to investors.
Price-to-Earnings (P/E) Ratio
The company has reported a net loss attributable to common stockholders of $51,821,000 for the three months ended September 30, 2024, resulting in a net loss per share of $0.60. Given that the company has not generated any product revenue, the P/E ratio cannot be calculated, as it is not applicable.
Price-to-Book (P/B) Ratio
As of September 30, 2024, the total stockholders’ equity for IDEAYA Biosciences was $1,180,418,000, with 86,357,856 shares outstanding. The book value per share can be calculated as follows:
Book Value per Share = Total Stockholders’ Equity / Total Shares Outstanding
Book Value per Share = $1,180,418,000 / 86,357,856 = $13.65
Assuming a current stock price of approximately $35.00 following a recent offering, the P/B ratio would be:
P/B Ratio = Stock Price / Book Value per Share
P/B Ratio = $35.00 / $13.65 ≈ 2.57
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
Since the company operates at a loss and has not generated positive EBITDA, the EV/EBITDA ratio is not applicable at this time.
Stock Price Trends
Over the last 12 months, the stock price exhibited significant volatility. For instance, the stock price was around $23.50 at a follow-on offering in October 2023, and it increased to $35.00 by July 2024. This represents a growth of approximately 48.94% during this period.
Dividend Yield and Payout Ratios
As of September 30, 2024, IDEAYA Biosciences has not declared any dividends, hence the dividend yield is 0%. The company continues to reinvest its funds into research and development activities.
Analyst Consensus on Stock Valuation
Analyst consensus indicates a mixed outlook on the stock, with some analysts recommending a buy based on the potential of its drug pipeline, while others suggest a hold due to the lack of revenue generation and ongoing losses.
| Financial Metric | Value |
|---|---|
| Net Loss (Q3 2024) | $51,821,000 |
| Net Loss per Share | $0.60 |
| Total Stockholders’ Equity | $1,180,418,000 |
| Total Shares Outstanding | 86,357,856 |
| Book Value per Share | $13.65 |
| Current Stock Price | $35.00 |
| P/B Ratio | 2.57 |
| Dividend Yield | 0% |
| Analyst Consensus | Buy/Hold |
Key Risks Facing IDEAYA Biosciences, Inc. (IDYA)
Key Risks Facing IDEAYA Biosciences, Inc. (IDYA)
The financial health of IDEAYA Biosciences, Inc. is influenced by various internal and external risk factors that could impact its operations and strategic objectives.
Industry Competition
The biotechnology sector is highly competitive, with numerous companies vying for market share in precision medicine. As of September 30, 2024, IDEAYA has not generated any revenue from commercial products since inception, and the ability to successfully develop its product candidates is critical amidst a crowded marketplace.
Regulatory Challenges
Regulatory bodies such as the FDA impose stringent requirements for clinical trials and product approvals. Delays in obtaining necessary approvals can lead to increased costs and extended timelines for product development. The company has noted that the unpredictability of regulatory approvals poses a significant risk.
Financial Risks
Financially, IDEAYA has incurred substantial losses, reporting a net loss of $144.165 million for the nine months ended September 30, 2024, compared to $79.006 million for the same period in 2023. The accumulated deficit as of September 30, 2024, stood at $492.529 million, indicating ongoing financial strain.
Operational Risks
Operational risks include reliance on third-party contractors for clinical trials and production. Any failure or delay in these services can significantly hinder progress. The company reported an increase in research and development expenses by 70% year-over-year, totaling $154.490 million for the nine months ended September 30, 2024.
Market Conditions
Market conditions, including fluctuations in investor sentiment and economic downturns, can adversely affect the company’s ability to raise capital. As of September 30, 2024, IDEAYA had cash and cash equivalents of $401.194 million, which may not be sufficient to cover future operational needs without additional funding.
Mitigation Strategies
To mitigate these risks, IDEAYA has focused on maintaining a solid cash position, with cash and marketable securities totaling $1.2 billion. The company continues to explore various financing options, including equity and debt offerings, to ensure sufficient liquidity for ongoing research and development efforts.
| Risk Factor | Description | Current Financial Impact |
|---|---|---|
| Industry Competition | High competition in biotechnology | No revenue generated from products since inception |
| Regulatory Challenges | Stricter requirements and potential delays in approvals | Increased costs and longer timelines for product development |
| Financial Risks | Significant net losses reported | Net loss of $144.165 million for 2024 |
| Operational Risks | Reliance on third-party contractors | R&D expenses increased by 70% to $154.490 million |
| Market Conditions | Fluctuations in investor sentiment | Cash and equivalents of $401.194 million |
Future Growth Prospects for IDEAYA Biosciences, Inc. (IDYA)
Growth Opportunities
Future growth prospects for IDEAYA Biosciences, Inc. are influenced by several key growth drivers:
Key Growth Drivers
- Product Innovations: The company is advancing its lead product candidates through clinical trials, focusing on precision medicine in oncology.
- Market Expansions: Collaborations with major pharmaceutical companies such as GSK enhance market presence and distribution capabilities.
- Acquisitions: Strategic partnerships and potential acquisitions are being explored to bolster the company's R&D capabilities.
Future Revenue Growth Projections
Revenue growth is projected to be contingent on successful clinical trials and subsequent regulatory approvals. As of September 30, 2024, the company's revenue for the nine months was $0, down from $19.5 million in the same period of 2023, primarily due to the completion of all performance obligations under the GSK Collaboration Agreement.
Earnings Estimates
The net loss for the nine months ended September 30, 2024, was $(144.2 million), compared to $(79.0 million) for the same period in 2023. This trend indicates the need for continued investment in R&D before achieving profitability.
Strategic Initiatives and Partnerships
The collaboration with GSK has been pivotal, allowing for shared resources in clinical development. In October 2024, the company received IND clearance for IDE275, leading to a $7 million milestone payment. Future milestones could significantly impact revenue generation.
Competitive Advantages
IDEAYA has several competitive advantages, including:
- Strong Pipeline: Focused on precision oncology, with multiple candidates in various stages of clinical trials.
- Financial Stability: As of September 30, 2024, the company had cash, cash equivalents, and marketable securities of $1.2 billion, providing a solid foundation for ongoing operations.
- Expertise in Drug Discovery: The company integrates small molecule drug discovery with advanced biomarker identification, enhancing the likelihood of successful therapeutic outcomes.
| Metric | September 30, 2024 | September 30, 2023 | Change |
|---|---|---|---|
| Collaboration Revenue | $0 | $19.5 million | $(19.5 million) |
| Net Loss | $(144.2 million) | $(79.0 million) | $(65.2 million) |
| Cash, Cash Equivalents, and Marketable Securities | $1.2 billion | N/A | N/A |
| Accumulated Deficit | $(492.5 million) | $(348.4 million) | $(144.1 million) |
The emphasis on innovation, strategic partnerships, and a strong financial position positions the company favorably for future growth. However, achieving these objectives will depend on successful clinical outcomes and regulatory approvals.
IDEAYA Biosciences, Inc. (IDYA) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- IDEAYA Biosciences, Inc. (IDYA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of IDEAYA Biosciences, Inc. (IDYA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View IDEAYA Biosciences, Inc. (IDYA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.