SCYNEXIS, Inc. (SCYX) Bundle
Understanding SCYNEXIS, Inc. (SCYX) Revenue Streams
Understanding SCYNEXIS, Inc. Revenue Streams
SCYNEXIS, Inc. has various revenue streams primarily categorized into license agreement revenue. The following table summarizes the revenue breakdown for the nine months ended September 30, 2024, and 2023:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change ($ millions) | Percentage Change (%) |
|---|---|---|---|---|
| License Agreement Revenue | 2.8 | 133.4 | (130.6) | (97.9) |
| Product Revenue, Net | 0.0 | 1.0 | (1.0) | (100.0) |
| Total Revenue | 2.8 | 134.3 | (131.5) | (97.9) |
For the nine months ended September 30, 2024, the total revenue significantly decreased to $2.8 million compared to $134.3 million in the same period of 2023. This represents a staggering 97.9% decrease, primarily due to the recognition of a substantial upfront payment under a license agreement in the previous year.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate highlights a dramatic shift in revenue recognition:
- 2024: $2.8 million in license agreement revenue
- 2023: $133.4 million in license agreement revenue
- Percentage decrease: 97.9%
The decrease in license agreement revenue is attributed to the lack of significant new agreements or milestones reached in the current period compared to the previous year, where a one-time licensing fee was recognized.
Contribution of Different Business Segments to Overall Revenue
In the current fiscal period, license agreement revenue has been the sole contributor to overall revenue, with product revenue being negligible:
- License Agreement Revenue: 100% of total revenue
- Product Revenue: 0% of total revenue
Significant Changes in Revenue Streams
Key changes in revenue streams include:
- Complete drop in product revenue from $1.0 million in 2023 to $0.0 million in 2024.
- License agreement revenue dropped from $133.4 million to $2.8 million.
This decline underscores the company’s reliance on licensing agreements for revenue generation, emphasizing the need for new agreements or product sales to enhance future revenue stability.
A Deep Dive into SCYNEXIS, Inc. (SCYX) Profitability
A Deep Dive into SCYNEXIS, Inc. Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the company reported total revenue of $2.8 million, leading to a gross profit margin of 0% as the cost of product revenue was $0.
Operating Profit Margin: The loss from operations for the same period was ($29.1 million), resulting in an operating profit margin of -1059.5%.
Net Profit Margin: The net loss for the nine months ended September 30, 2024, was ($16.9 million), translating to a net profit margin of -610.5%.
Trends in Profitability Over Time
Comparing the financial performance year-over-year, the company reported a significant decline in revenue from $134.3 million for the nine months ended September 30, 2023, to $2.8 million in the same period for 2024, a reduction of 97.9%. The operating expenses decreased from $38.6 million to $31.8 million, a decline of 17.6%.
Comparison of Profitability Ratios with Industry Averages
As of September 30, 2024, SCYNEXIS’s operating profit margin of -1059.5% significantly underperforms compared to the industry average for biopharmaceutical companies, which typically range from 10% to 20%. The net profit margin of -610.5% also contrasts sharply with industry norms, where positive margins are expected as companies reach profitability.
Analysis of Operational Efficiency
Research and development expenses for the nine months ended September 30, 2024, were $22.1 million, an increase of 9% from $20.3 million in the prior year. Selling, general, and administrative expenses decreased by 44%, from $17.3 million to $9.7 million, reflecting improved cost management.
Profitability Metrics Summary Table
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $2.8 million | $134.3 million | -97.9% |
| Gross Profit Margin | 0% | 0% | N/A |
| Operating Profit Margin | -1059.5% | 71.3% | -1130.8% |
| Net Profit Margin | -610.5% | 64.5% | -875.0% |
| Research and Development Expenses | $22.1 million | $20.3 million | +8.6% |
| Selling, General & Administrative Expenses | $9.7 million | $17.3 million | -44% |
Debt vs. Equity: How SCYNEXIS, Inc. (SCYX) Finances Its Growth
Debt vs. Equity: How SCYNEXIS, Inc. Finances Its Growth
Overview of the Company's Debt Levels
As of September 30, 2024, SCYNEXIS, Inc. reported long-term debt of $13.2 million, down from $12.0 million at the end of 2023. The company had no short-term debt obligations as of this date.
Debt-to-Equity Ratio
The debt-to-equity ratio for SCYNEXIS is approximately 0.23, calculated by dividing total liabilities of $40.5 million by total stockholders' equity of $58.5 million as of September 30, 2024. This ratio is below the industry average of 0.5, indicating a conservative approach to leveraging.
Recent Debt Issuances and Credit Ratings
In March 2019, the company issued $16.0 million in Senior Convertible Notes at an interest rate of 6.0%, maturing in March 2025. As of September 30, 2024, the fair value of these notes was assessed at $13.2 million. The company has not received formal credit ratings from major agencies.
Debt Management and Refinancing Activity
SCYNEXIS has actively managed its debt, with amortization of debt issuance costs amounting to $1.3 million for the nine months ended September 30, 2024. The company repaid its prior loan agreement in May 2023, reducing its interest expense from $2.9 million in 2023 to $0.6 million in 2024.
Equity Financing
As of September 30, 2024, SCYNEXIS had 48,618,693 shares outstanding with an accumulated deficit of $372.1 million. The company has relied on equity financing through several public offerings, including a follow-on offering in April 2022.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Long-term Debt | $13.2 million | $12.0 million |
| Short-term Debt | $0 | $0 |
| Total Liabilities | $40.5 million | $55.5 million |
| Total Stockholders' Equity | $58.5 million | $72.9 million |
| Debt-to-Equity Ratio | 0.23 | 0.16 |
| Interest Expense | $0.6 million | $2.9 million |
Balancing Debt and Equity
SCYNEXIS continues to balance its financing through a mix of debt and equity, focusing on minimizing interest costs while maintaining sufficient liquidity for ongoing operations. As of September 30, 2024, the company had cash and cash equivalents totaling $29.3 million.
Assessing SCYNEXIS, Inc. (SCYX) Liquidity
Assessing SCYNEXIS, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current assets amounted to $54.3 million while the current liabilities were $22.5 million, resulting in a current ratio of 2.42.
Quick Ratio: The quick assets, which exclude inventory, stood at $52.1 million, making the quick ratio 2.31.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is calculated as current assets minus current liabilities:
Working Capital: $54.3 million (current assets) - $22.5 million (current liabilities) = $31.8 million.
Cash Flow Statements Overview
For the nine months ended September 30, 2024:
- Net cash used in operating activities: $(14.1) million
- Net cash provided by investing activities: $8.8 million
- Net cash provided by financing activities: $16,000
The cash flows from operating activities saw a significant decrease from the previous year, where it was $67.9 million for the nine months ended September 30, 2023.
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the total cash, cash equivalents, and restricted cash were reported at $29.3 million, a decrease from $44.6 million as of September 30, 2023.
Cash Flow Summary Table
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash used in operating activities | $(14,102) | $67,894 |
| Net cash provided by investing activities | $8,767 | $(32,725) |
| Net cash provided by financing activities | $16 | $(36,586) |
| Net decrease in cash | $(5,319) | $(1,417) |
| Cash, cash equivalents, and restricted cash | $29,274 | $44,615 |
Overall, the liquidity position appears to be stable, but the significant cash outflows from operating activities and the decrease in cash reserves from the previous year indicate potential concerns that investors should monitor closely.
Is SCYNEXIS, Inc. (SCYX) Overvalued or Undervalued?
Valuation Analysis
In evaluating the financial health of SCYNEXIS, Inc. (SCYX), we will analyze its valuation metrics including the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) ratio.
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, SCYNEXIS reported a net loss of $16.855 million, translating to a diluted net loss per share of $(0.35). The stock price as of the same date was approximately $1.00, resulting in a P/E ratio that cannot be calculated due to the negative earnings.
Price-to-Book (P/B) Ratio
As of September 30, 2024, the total stockholders' equity was $58.529 million, with 37,943,241 shares outstanding. This gives a book value per share of approximately $1.54. With a market price of $1.00, the P/B ratio is approximately 0.65, indicating the stock may be undervalued relative to its book value.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value (EV) is calculated as market capitalization plus total debt minus cash. As of September 30, 2024, SCYNEXIS had cash and cash equivalents of $29.274 million and total liabilities of $40.509 million. Assuming a market cap of $37.943 million, the EV is approximately $48.478 million. With EBITDA for the nine months ended September 30, 2024 being negative, the EV/EBITDA ratio cannot be calculated.
Stock Price Trends
Over the last 12 months, SCYNEXIS shares have experienced significant volatility. The stock price ranged from a high of approximately $6.00 to a low of $0.90. As of September 30, 2024, the price stood at $1.00.
Dividend Yield and Payout Ratios
SCYNEXIS does not currently pay any dividends, and therefore, the dividend yield is 0%. The payout ratio is also 0% as there are no earnings being distributed to shareholders.
Analyst Consensus on Stock Valuation
As of the latest reports, the consensus among analysts is a Hold rating on SCYNEXIS stock, reflecting uncertainty regarding its future performance given the recent financial losses and ongoing development costs.
| Metric | Value |
|---|---|
| P/E Ratio | N/A (negative earnings) |
| P/B Ratio | 0.65 |
| EV | $48.478 million |
| EBITDA | N/A (negative) |
| Stock Price (as of Sep 30, 2024) | $1.00 |
| 12-Month High | $6.00 |
| 12-Month Low | $0.90 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing SCYNEXIS, Inc. (SCYX)
Key Risks Facing SCYNEXIS, Inc. (SCYX)
Industry Competition: The pharmaceutical industry is highly competitive, with numerous companies developing similar therapeutics. As of September 30, 2024, SCYNEXIS reported a net loss of $16.9 million for the nine-month period, primarily driven by increased research and development costs, which totaled $22.1 million during the same timeframe.
Regulatory Changes: Regulatory approvals are critical for the commercialization of pharmaceutical products. Changes in regulations or delays in obtaining necessary approvals can significantly impact the company's financial health. As of September 30, 2024, SCYNEXIS's accumulated deficit stood at $372.1 million.
Market Conditions: Fluctuations in market conditions can adversely affect the company’s revenue streams. For the nine months ended September 30, 2024, total revenue was $2.8 million, a stark decline of 97.9% compared to $134.3 million for the same period in 2023.
Operational Risks
SCYNEXIS faces operational risks including the management of clinical trials and the execution of its research and development strategy. The company’s operational expenses for the nine months ended September 30, 2024, totaled $31.8 million, down 17.6% from $38.6 million in the prior year.
Financial Risks
Financial risks include liquidity challenges and the need for additional capital. As of September 30, 2024, SCYNEXIS had cash and cash equivalents of $29.3 million, down from $44.6 million at the end of the previous year. The company may require further financing through equity offerings, debt financings, or other arrangements.
Strategic Risks
Strategic risks encompass the effectiveness of partnerships and licensing agreements. SCYNEXIS has multiple collaborations, including a significant agreement with GSK, which contributed to a decline in license agreement revenue from $133.4 million in 2023 to $2.8 million in 2024.
Mitigation Strategies
To mitigate these risks, SCYNEXIS is focused on streamlining its operations and reducing costs. Selling, general and administrative expenses decreased 44% to $9.7 million for the nine months ended September 30, 2024. The company is also actively seeking strategic partnerships to enhance its market position and secure additional funding sources.
| Risk Factor | Description | Financial Impact |
|---|---|---|
| Industry Competition | High competition in pharmaceuticals | Net loss of $16.9 million |
| Regulatory Changes | Delays in approvals | Accumulated deficit of $372.1 million |
| Market Conditions | Fluctuating market impact | Revenue dropped to $2.8 million |
| Operational Risks | Clinical trial management | Operating expenses of $31.8 million |
| Financial Risks | Liquidity challenges | Cash of $29.3 million |
| Strategic Risks | Effectiveness of partnerships | License revenue decline to $2.8 million |
Future Growth Prospects for SCYNEXIS, Inc. (SCYX)
Future Growth Prospects for SCYNEXIS, Inc.
Analysis of Key Growth Drivers
SCYNEXIS, Inc. is positioned for growth through several key drivers:
- Product Innovations: The company is focusing on the development of its lead product candidate, ibrexafungerp, which is currently undergoing clinical trials. The investment in research and development (R&D) has shown an increase from $20.3 million in the nine months ended September 30, 2023, to $22.1 million in the same period of 2024, reflecting a growth of 9%.
- Market Expansions: SCYNEXIS has established a collaboration with Hansoh Pharmaceutical to develop ibrexafungerp in the Greater China region, which represents a significant market opportunity.
- Strategic Partnerships: The GSK License Agreement has been a pivotal revenue stream, with $2.8 million in license agreement revenue recognized for the nine months ended September 30, 2024, compared to $133.4 million in the prior year.
Future Revenue Growth Projections and Earnings Estimates
Future revenue growth is projected to rebound as clinical development milestones are achieved. The company anticipates milestone payments under the GSK License Agreement, including a recent $10 million development milestone received in Q3 2024. Additionally, the company expects to recognize $1.6 million and $1.3 million as current and long-term deferred revenue, respectively, by the end of 2025.
Strategic Initiatives or Partnerships Driving Future Growth
Key strategic initiatives include:
- Continued collaboration with GSK and the execution of the Hansoh agreement, which may enhance revenue through expanded market access.
- Investment in R&D to advance the clinical development of SCY-247 and ibrexafungerp, vital for long-term growth.
Competitive Advantages Positioning for Growth
SCYNEXIS benefits from several competitive advantages:
- Strong R&D Pipeline: The company’s commitment to R&D, with a significant budget increase, supports innovative product development.
- Intellectual Property Portfolio: The company’s licensing agreements and collaborations enhance its competitive position in the market.
- Financial Flexibility: As of September 30, 2024, SCYNEXIS reported cash and cash equivalents of $28.7 million, providing a buffer for ongoing operations.
Financial Overview of Key Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Change (Year-over-Year) |
|---|---|---|---|
| Total Revenue | $660,000 | $1,761,000 | -62.5% |
| License Agreement Revenue | $660,000 | $2,375,000 | -72.2% |
| R&D Expenses | $8,073,000 | $6,466,000 | +24.9% |
| Selling, General & Administrative Expenses | $2,907,000 | $5,014,000 | -42.0% |
| Net Loss | $(2,808,000) | $(1,757,000) | +59.8% |
SCYNEXIS, Inc. (SCYX) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- SCYNEXIS, Inc. (SCYX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SCYNEXIS, Inc. (SCYX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SCYNEXIS, Inc. (SCYX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.