Sunshine Biopharma, Inc. (SBFM) Bundle
Understanding Sunshine Biopharma, Inc. (SBFM) Revenue Streams
Understanding Sunshine Biopharma, Inc.’s Revenue Streams
During the nine months ended September 30, 2024, the company generated revenues of $25,279,291, compared to $16,412,586 for the same period in 2023, marking an increase of $8,866,705 or 54%. This growth is largely attributed to enhanced marketing and sales efforts by its subsidiary, Nora Pharma.
For the three months ended September 30, 2024, sales reached $8,435,178, up from $5,957,668 in the same period of 2023, reflecting a growth of $2,477,510 or 42%.
Revenue Breakdown by Segments
The revenue composition from different segments is as follows:
- Prescription Generic Pharmaceuticals: Approximately 97% of total revenues.
- Nonprescription Over-The-Counter Products: Approximately 3% of total revenues.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rates are detailed in the table below:
| Period | Revenue ($) | Growth Rate (%) |
|---|---|---|
| 2024 (9 months) | $25,279,291 | 54% |
| 2023 (9 months) | $16,412,586 | - |
| 2024 (3 months) | $8,435,178 | 42% |
| 2023 (3 months) | $5,957,668 | - |
Contribution of Different Business Segments to Overall Revenue
The sales from the Prescription Generic Pharmaceuticals segment continue to dominate the revenue structure, contributing roughly 97% of total revenues, while the Nonprescription Over-The-Counter Products segment contributes around 3%.
Analysis of Significant Changes in Revenue Streams
The increase in revenues can be attributed to:
- Expanded marketing initiatives.
- Increased sales efforts by Nora Pharma.
- Access to new regional markets through greater retailer allowances.
The direct cost for generating these revenues was $17,702,546 for the nine months ended September 30, 2024, representing 70% of total revenue, compared to $10,641,461 or 65% for the same period in 2023.
Gross profit for the nine months ended September 30, 2024, was $7,576,745, compared to $5,771,125 in 2023.
Overall, the financial performance indicates a robust growth trajectory, driven by strategic marketing and operational enhancements.
A Deep Dive into Sunshine Biopharma, Inc. (SBFM) Profitability
Profitability Metrics
Gross Profit: For the three months ended September 30, 2024, the gross profit was $2,866,151, an increase from $1,990,256 for the same period in 2023. For the nine months ended September 30, 2024, the gross profit rose to $7,576,745 compared to $5,771,125 in 2023.
Operating Profit: The operating loss for the three months ended September 30, 2024 was $1,106,353, an increase from $779,474 in the prior year. For the nine-month period, the operating loss was $3,774,399, compared to $3,598,078 in 2023.
Net Profit Margin: The net loss for the three months ended September 30, 2024 was $1,197,803 ($0.94 per share), compared to a net loss of $651,482 ($50.72 per share) in 2023. For the nine months, the net loss was $2,975,904 ($13.61 per share), down from $3,256,020 ($265.71 per share) the previous year.
Trends in Profitability Over Time
The gross profit margin for the nine months ended September 30, 2024, was approximately 30% (calculated as gross profit of $7,576,745 divided by total revenues of $25,279,291), up from 35% in the previous year ($5,771,125 gross profit over $16,412,586 in revenue). This indicates a shift in profitability trends, primarily due to increased costs associated with expanding market access.
Comparison of Profitability Ratios with Industry Averages
The operating loss margin for the nine-month period in 2024 was approximately 15% (operating loss of $3,774,399 on revenues of $25,279,291). In contrast, the industry average for biopharmaceutical companies typically ranges from 10% to 20%, indicating a competitive position albeit with room for improvement.
Analysis of Operational Efficiency
The general and administrative expenses for the nine months ended September 30, 2024, were $11,351,144, compared to $9,369,203 in 2023. This represents a year-over-year increase of approximately 21%. The breakdown of these expenses is as follows:
| Expense Category | 2024 Amount | 2023 Amount |
|---|---|---|
| Accounting | $565,172 | $301,381 |
| Consulting | $576,481 | $745,850 |
| Marketing | $737,116 | $502,987 |
| Office Costs | $2,203,970 | $1,422,058 |
| Salaries | $5,183,738 | $4,344,801 |
This table highlights significant increases in salaries and marketing costs, which may be reflective of efforts to expand operational capacity and market penetration. The increase in expenses is a critical factor affecting profitability metrics, leading to a net loss margin of approximately 12% for the nine-month period in 2024.
Overall, while gross profits have increased, the rise in operational costs has resulted in continued net losses, necessitating effective cost management strategies to improve profitability metrics in the future.
Debt vs. Equity: How Sunshine Biopharma, Inc. (SBFM) Finances Its Growth
Debt vs. Equity: How Sunshine Biopharma, Inc. Finances Its Growth
Overview of Debt Levels
As of September 30, 2024, the company's total liabilities amounted to $5,017,504, which includes both current and long-term liabilities. Current liabilities were reported at $4,528,477, while long-term liabilities stood at $489,027.
Debt-to-Equity Ratio
The debt-to-equity ratio for the company is calculated as follows:
Debt-to-Equity Ratio = Total Liabilities / Total Shareholders' Equity
Using the figures provided, with total liabilities at $5,017,504 and total shareholders' equity at $25,039,312, the debt-to-equity ratio is approximately 0.20. This ratio is significantly lower than the industry average, indicating a conservative approach to leveraging.
Recent Debt Issuances and Credit Ratings
In recent months, the company has engaged in strategic financing activities. Notably, it completed an underwritten public offering in February 2024, raising $8,522,411. The company has not reported any credit ratings from major agencies, which typically indicates a smaller scale of operations and a focus on growth through equity financing rather than borrowing.
Balancing Debt Financing and Equity Funding
The company has effectively balanced its financing through a combination of debt and equity. The recent financing event in February 2024, which raised significant capital, showcases its reliance on equity to fund growth initiatives. Additionally, the company has engaged in warrant exercises that generated net proceeds of approximately $1,892,608.
| Financial Metrics | Amount |
|---|---|
| Total Liabilities | $5,017,504 |
| Current Liabilities | $4,528,477 |
| Long-Term Liabilities | $489,027 |
| Total Shareholders' Equity | $25,039,312 |
| Debt-to-Equity Ratio | 0.20 |
| Recent Equity Financing | $8,522,411 |
| Warrant Exercise Proceeds | $1,892,608 |
Assessing Sunshine Biopharma, Inc. (SBFM) Liquidity
Assessing Sunshine Biopharma's Liquidity
As of September 30, 2024, Sunshine Biopharma reported a cash and cash equivalents balance of $12,206,655. This reflects a decrease from $16,292,347 at the end of 2023 .
Current and Quick Ratios
The current assets totaled $25,981,863, while current liabilities stood at $4,528,477 as of September 30, 2024. This results in a current ratio of approximately 5.74, indicating a strong liquidity position. The quick ratio, which excludes inventory from current assets, can be calculated as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
With inventory reported at $9,820,730, the quick ratio is:
Quick Ratio = ($25,981,863 - $9,820,730) / $4,528,477 = 3.63
Analysis of Working Capital Trends
Working capital is defined as current assets minus current liabilities. For Sunshine Biopharma:
Working Capital = Current Assets - Current Liabilities = $25,981,863 - $4,528,477 = $21,453,386
This positive working capital indicates that the company is well-positioned to meet its short-term obligations.
Cash Flow Statements Overview
The cash flow from operating activities for the nine months ended September 30, 2024, was reported as:
- $9,123,898, compared to - $6,085,435 for the same period in 2023 .
Cash flows from investing activities totaled:
- $1,789,312 for 2024, compared to - $386,920 in 2023 .
Cash flows from financing activities were:
$7,235,518 in 2024, up from $3,456,106 in 2023 .
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Operating Cash Flow | - $9,123,898 | - $6,085,435 |
| Investing Cash Flow | - $1,789,312 | - $386,920 |
| Financing Cash Flow | $7,235,518 | $3,456,106 |
Potential Liquidity Concerns or Strengths
Despite the significant net cash used in operating activities, the company has sufficient cash on hand to fund operations for the next 24 months . However, the ongoing losses, with a net loss of $2,975,904 for the nine-month period ended September 30, 2024, compared to $3,256,020 for the same period in 2023, indicate a need for continued monitoring of liquidity .
Additionally, total liabilities as of September 30, 2024, amounted to $5,017,504, which includes current liabilities of $4,528,477 . This should be assessed in conjunction with the company's cash flow trends to ensure that liquidity remains robust in the face of operational challenges.
Is Sunshine Biopharma, Inc. (SBFM) Overvalued or Undervalued?
Valuation Analysis
Price-to-Earnings (P/E) Ratio
The P/E ratio for Sunshine Biopharma, Inc. is currently not applicable due to the net losses reported. For the nine months ended September 30, 2024, the net loss was $2,975,904, translating to a loss per share of $13.61.
Price-to-Book (P/B) Ratio
The book value as of September 30, 2024, is $25,039,312 with 1,999,660 shares outstanding, resulting in a book value per share of approximately $12.52. The current stock price should be compared against this value to assess the P/B ratio.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As of the latest financial reporting, EBITDA is not explicitly provided; however, the net loss from operations for the nine months ended September 30, 2024, was $3,774,399. The enterprise value can be calculated by adding market capitalization to total debt and subtracting cash and equivalents of $12,206,655.
Stock Price Trends
Over the past 12 months, the stock price has exhibited volatility, with a notable decline from a peak of approximately $2.00 to a recent low nearing $0.50. The stock closed at $0.80 as of the latest trading session.
Dividend Yield and Payout Ratios
Sunshine Biopharma, Inc. does not currently pay dividends. Therefore, the dividend yield and payout ratios are both 0%.
Analyst Consensus on Stock Valuation
As per the latest consensus, analysts have rated the stock as a Hold, indicating caution among investors due to ongoing operational losses and the need for additional capital.
Summary Table of Key Financial Ratios
| Metric | Value |
|---|---|
| P/E Ratio | N/A (Net Loss) |
| P/B Ratio | Approx. 0.064 (Current Price: $0.80) |
| EV/EBITDA Ratio | Not available (EBITDA not disclosed) |
| Net Loss (9M 2024) | $2,975,904 |
| Loss Per Share | $13.61 |
| Book Value (Total) | $25,039,312 |
| Cash and Cash Equivalents | $12,206,655 |
| Current Stock Price | $0.80 |
| Analyst Rating | Hold |
Key Risks Facing Sunshine Biopharma, Inc. (SBFM)
Key Risks Facing Sunshine Biopharma, Inc.
Overview of Internal and External Risks:
- Industry Competition: The pharmaceutical industry is highly competitive with several established players. This poses a risk to market share and pricing power.
- Regulatory Changes: The company operates in a heavily regulated environment. Changes in regulations can impact operational costs and product approvals.
- Market Conditions: Economic downturns can lead to reduced healthcare spending, affecting sales and revenue.
Operational Risks:
- Dependence on Subsidiary Performance: The company relies on its wholly-owned subsidiary, Nora Pharma, for a significant portion of its revenue. Any operational issues at Nora can adversely affect overall performance.
- Supply Chain Disruptions: Interruptions in the supply of raw materials or products can hinder production capabilities.
Financial Risks:
- Liquidity Risk: As of September 30, 2024, the company reported cash and cash equivalents of $12,206,655. Insufficient liquidity can restrict operational flexibility.
- Net Losses: The company incurred a net loss of $2,975,904 for the nine months ended September 30, 2024, compared to a net loss of $3,256,020 for the same period in 2023.
Strategic Risks:
- Need for Additional Capital: The company anticipates needing to raise additional capital for future research and development activities and expansion efforts. There is no assurance that this capital will be available on acceptable terms.
- Product Development Risks: The success of new products is uncertain. Failure to develop successful products can adversely impact financial performance.
| Risk Factor | Description | Mitigation Strategy |
|---|---|---|
| Industry Competition | High competition in the pharmaceutical industry | Enhancing product differentiation and marketing efforts |
| Regulatory Changes | Changes in healthcare regulations | Maintaining compliance and adapting quickly to new regulations |
| Liquidity Risk | Insufficient cash reserves | Monitoring cash flow and exploring financing options |
| Dependence on Subsidiary | Reliance on Nora Pharma's performance | Diversifying product lines and revenue sources |
| Product Development Risks | Uncertain outcomes in new product development | Conducting thorough market research and feasibility studies |
Recent Earnings Report Highlights:
- Revenue Growth: The company generated revenues of $25,279,291 for the nine months ended September 30, 2024, up from $16,412,586 for the same period in 2023, representing a growth of 54%.
- Cost of Sales: Direct costs for generating these revenues were $17,702,546, reflecting a gross profit of $7,576,745.
Future Growth Prospects for Sunshine Biopharma, Inc. (SBFM)
Future Growth Prospects for Sunshine Biopharma, Inc.
Analysis of Key Growth Drivers
The growth of Sunshine Biopharma, Inc. is significantly influenced by several key factors:
- Product Innovations: The company has expanded its product offerings through its subsidiary, Nora Pharma, which now holds 152 Drug Identification Numbers (DINs) for prescription drugs in Canada.
- Market Expansions: The company has reported a revenue increase of 54% for the nine months ended September 30, 2024, amounting to $25,279,291 compared to $16,412,586 in the same period of 2023.
- Acquisitions: The acquisition of Nora Pharma in late 2022 has been pivotal, with a valuation of $4,514,000 for the shares issued during the transaction.
Future Revenue Growth Projections and Earnings Estimates
Revenue projections indicate continued growth, with the company reporting a gross profit of $7,576,745 for the nine months ended September 30, 2024, up from $5,771,125 in 2023. Earnings estimates suggest ongoing operational losses, with a net loss of $2,975,904 for the same period.
Strategic Initiatives or Partnerships
Strategic initiatives include:
- Investment in marketing and sales efforts that have driven revenue growth.
- Cash flows from financing activities increased to $7,235,518 in 2024 compared to $3,456,106 in 2023, indicating stronger financial backing for future initiatives.
Competitive Advantages
The company’s competitive advantages include:
- A robust portfolio of generic pharmaceutical products, with a focus on expanding its market presence through strategic marketing.
- A strong cash position of $12,206,655 as of September 30, 2024, providing a buffer for ongoing operations and potential growth investments.
Financial Overview Table
| Metrics | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Revenue | $25,279,291 | $16,412,586 | 54% |
| Gross Profit | $7,576,745 | $5,771,125 | 31.2% |
| Net Loss | $2,975,904 | $3,256,020 | -8.6% |
| Cash and Cash Equivalents | $12,206,655 | N/A | N/A |
| Financing Activities Cash Flow | $7,235,518 | $3,456,106 | 109.2% |
Conclusion
Overall, the growth opportunities for Sunshine Biopharma, Inc. are supported by product innovation, market expansion, and strategic initiatives, although challenges remain regarding profitability.
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Resources:
- Sunshine Biopharma, Inc. (SBFM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sunshine Biopharma, Inc. (SBFM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sunshine Biopharma, Inc. (SBFM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.