Soligenix, Inc. (SNGX) Bundle
Understanding Soligenix, Inc. (SNGX) Revenue Streams
Understanding Soligenix, Inc. Revenue Streams
For the three months ended September 30, 2024, the total revenues were $0, compared to $130,440 for the same period in 2023, representing a decrease of 100%.
For the nine months ended September 30, 2024, the total revenues were $119,371, a significant decline from $594,547 in the same period in 2023, which is a decrease of 80%.
| Period | Total Revenues | Percentage Change |
|---|---|---|
| Three Months Ended September 30, 2024 | $0 | -100% |
| Three Months Ended September 30, 2023 | $130,440 | - |
| Nine Months Ended September 30, 2024 | $119,371 | -80% |
| Nine Months Ended September 30, 2023 | $594,547 | - |
The revenue sources primarily stem from government contracts, grants, and subawards related to the development of key products. For the nine months ended September 30, 2024, the breakdown of revenues was:
| Segment | Revenue | Previous Year Revenue | Percentage Change |
|---|---|---|---|
| Specialized BioTherapeutics | $119,371 | $223,870 | -47% |
| Public Health Solutions | $0 | $370,677 | -100% |
| Total | $119,371 | $594,547 | -80% |
The decline in revenue was primarily due to the conclusion of higher-margin grants associated with key development projects, including SGX943 and CiVax™, as well as a decrease in revenue linked to the investigator-initiated study of HyBryte™.
In terms of gross profit, for the nine months ended September 30, 2024, the gross profit was $0, compared to $74,045 for the same period in 2023, reflecting a decrease of 100%.
Overall, the significant changes in revenue streams highlight challenges in securing new contracts and the completion of existing high-margin projects, which are critical for sustaining revenue levels moving forward.
A Deep Dive into Soligenix, Inc. (SNGX) Profitability
A Deep Dive into Soligenix, Inc.'s Profitability
Gross Profit Margin: For the three months ended September 30, 2024, the gross profit was $0, representing a margin of 0% on total revenues. This is a significant drop from the gross profit of $19,999 or 15% margin for the same period in 2023. For the nine months ended September 30, 2024, the gross profit was also $0, compared to $74,045 or 12% margin for the same period in 2023.
Operating Profit Margin: The loss from operations for the three months ended September 30, 2024, was $(1,865,236), resulting in an operating margin of -100%. For the nine months ended September 30, 2024, the total operating loss was $(5,727,002), representing a similar operating margin of -100%.
Net Profit Margin: The net loss applicable to common stockholders for the three months ended September 30, 2024, was $(1,719,381), resulting in a net profit margin of -100%. For the nine months ended September 30, 2024, the net loss was $(5,279,210), also reflecting a net profit margin of -100%.
Trends in Profitability Over Time
Comparing the nine months ended September 30, 2024, to the same period in 2023, total revenues decreased from $594,547 to $119,371, a decline of 80%. The gross profit fell from $74,045 to $0, marking a decrease of 100%. The net loss increased from $(4,320,835) to $(5,279,210), reflecting a rise in net loss of 22%.
Comparison of Profitability Ratios with Industry Averages
As of 2024, the average gross profit margin for companies in the biotechnology sector is typically around 75%. In contrast, the company reported a gross profit margin of 0%. Similarly, the operating profit margin average for the industry hovers around 20%, while the company reported an operating margin of -100%.
Analysis of Operational Efficiency
Cost Management: Research and development expenses for the three months ended September 30, 2024, were $968,689, an increase of 17% compared to $826,015 in the same period in 2023. For the nine months, R&D expenses rose slightly from $2,535,165 to $2,564,887, an increase of 1%.
General and Administrative Expenses: General and administrative expenses were $896,547 for the three months ended September 30, 2024, down 8% from $973,040 in the same period in 2023. For the nine months, these expenses increased from $3,098,949 to $3,162,115, an increase of 2%.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Gross Profit | $0 | $19,999 | $0 | $74,045 |
| Operating Loss | $(1,865,236) | $(1,779,056) | $(5,727,002) | $(5,560,069) |
| Net Loss | $(1,719,381) | $(1,662,702) | $(5,279,210) | $(4,320,835) |
| R&D Expenses | $968,689 | $826,015 | $2,564,887 | $2,535,165 |
| G&A Expenses | $896,547 | $973,040 | $3,162,115 | $3,098,949 |
Debt vs. Equity: How Soligenix, Inc. (SNGX) Finances Its Growth
Debt vs. Equity: How Soligenix, Inc. Finances Its Growth
Long-term and Short-term Debt Levels
As of September 30, 2024, Soligenix, Inc. reported total liabilities of $4,541,791, which includes current liabilities of $4,530,247 and non-current liabilities primarily consisting of lease liabilities. The company has no outstanding convertible debt as of this date, following the repayment of principal balances and conversion of debt into equity.
Debt-to-Equity Ratio
The debt-to-equity ratio is a critical measure of the company's financial leverage. As of September 30, 2024, the total shareholders' equity stood at $5,935,188. This results in a debt-to-equity ratio of approximately 0.77 (calculated as total liabilities divided by total equity), which is below the industry average of approximately 1.0 for biotech firms.
Recent Debt Issuances and Credit Ratings
Recently, on October 8, 2024, the company amended its existing loan agreement with Pontifax Medison Finance, reducing the conversion price of its remaining convertible debt to $3.81 for the first portion and $4.23 for subsequent shares. The initial loan agreement was established in December 2020 for $20 million, but the company has since repaid significant portions of this debt.
Equity Funding Activities
In April 2024, Soligenix completed a public offering, generating approximately $4.75 million before expenses, through the issuance of 204,694 shares of common stock and pre-funded warrants. Additionally, during the nine months ended September 30, 2024, the company issued shares in exchange for the conversion of convertible debt, reducing overall debt levels.
Balancing Debt Financing and Equity Funding
The company has strategically balanced its financing by utilizing both debt and equity. As of September 30, 2024, cash and cash equivalents were reported at $9,840,177, reflecting an increase from $8,446,158 as of December 31, 2023. This solid cash position, coupled with reduced debt obligations, positions the company favorably for continued operations and funding of its clinical programs.
| Item | Amount |
|---|---|
| Total Liabilities | $4,541,791 |
| Total Shareholders' Equity | $5,935,188 |
| Debt-to-Equity Ratio | 0.77 |
| Recent Public Offering Proceeds | $4.75 million |
| Cash and Cash Equivalents (Sept 30, 2024) | $9,840,177 |
Assessing Soligenix, Inc. (SNGX) Liquidity
Assessing Soligenix, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio was approximately 2.28, calculated as total current assets of $10,306,892 divided by total current liabilities of $4,530,247.
Quick Ratio: The quick ratio, which excludes inventories from current assets, was approximately 2.28 as there are no inventories reported.
Working Capital Trends
Working capital increased significantly to $5,776,645 as of September 30, 2024, compared to $3,355,212 as of December 31, 2023, representing an increase of $2,421,433 or 72%.
Cash Flow Statements Overview
Operating Cash Flow: For the nine months ended September 30, 2024, net cash used in operating activities was $6,170,761, compared to $6,775,896 for the same period in 2023.
Investing Cash Flow: There were no significant investing cash flows reported during this period as the company focuses on research and development.
Financing Cash Flow: Net cash provided by financing activities was $7,519,211 for the nine months ended September 30, 2024.
Liquidity Concerns or Strengths
The company has an accumulated deficit of $230,983,386 as of September 30, 2024, and incurred a net loss of $5,279,210 during the nine months. Despite the liquidity position appearing strong with cash and cash equivalents of $9,840,177, there are concerns regarding the sustainability of operations due to ongoing losses and the necessity for additional capital to support future development.
| Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Current Assets | $10,306,892 | $9,507,320 |
| Current Liabilities | $4,530,247 | $6,152,108 |
| Working Capital | $5,776,645 | $3,355,212 |
| Net Cash Used in Operating Activities | $6,170,761 | $6,775,896 |
| Net Cash Provided by Financing Activities | $7,519,211 | $3,709,688 |
| Cash and Cash Equivalents | $9,840,177 | $8,446,158 |
| Accumulated Deficit | $230,983,386 | $225,704,176 |
Is Soligenix, Inc. (SNGX) Overvalued or Undervalued?
Valuation Analysis
In assessing the financial health of the company, it's essential to evaluate its valuation metrics. This includes key ratios such as price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA).
Price-to-Earnings (P/E) Ratio
The company's trailing twelve-month (TTM) P/E ratio is N/A due to negative earnings. For context, the industry average P/E ratio is approximately 15.2.
Price-to-Book (P/B) Ratio
The P/B ratio stands at 1.6, compared to the industry average of 2.0. This suggests that the stock may be undervalued relative to its book value.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is N/A as the company reported negative EBITDA for the last twelve months.
Stock Price Trends
Over the last 12 months, the stock price has fluctuated from a high of $5.00 to a low of $1.00. The current stock price is approximately $2.50.
Dividend Yield and Payout Ratios
The company does not currently pay any dividends, resulting in a dividend yield of 0%.
Analyst Consensus on Stock Valuation
The consensus among analysts is to hold the stock, with a majority rating it as a Hold. The average target price among analysts is $3.00.
| Metric | Company Value | Industry Average |
|---|---|---|
| P/E Ratio | N/A | 15.2 |
| P/B Ratio | 1.6 | 2.0 |
| EV/EBITDA Ratio | N/A | N/A |
| 12-Month High | $5.00 | N/A |
| 12-Month Low | $1.00 | N/A |
| Current Stock Price | $2.50 | N/A |
| Dividend Yield | 0% | N/A |
| Analyst Consensus | Hold | N/A |
| Average Target Price | $3.00 | N/A |
As of September 30, 2024, the company had a net loss of $5,279,210 compared to a net loss of $4,320,835 for the same period in 2023.
Additionally, the company had cash and cash equivalents of $9,840,177 as of September 30, 2024.
Key Risks Facing Soligenix, Inc. (SNGX)
Key Risks Facing Soligenix, Inc. (SNGX)
The financial health of Soligenix, Inc. is influenced by a variety of internal and external risk factors that could potentially impact its operations and market performance.
Industry Competition
Soligenix operates in the highly competitive biotechnology sector, where numerous companies are engaged in the development of similar therapeutic products. The competitive landscape includes other firms targeting antibiotic-resistant infections and emerging infectious diseases, which could affect market share and pricing strategies.
Regulatory Changes
Changes in regulatory frameworks can significantly impact product development timelines and costs. Soligenix is subject to stringent regulations from entities such as the FDA, which govern clinical trials and product approvals. Any adverse regulatory decisions could lead to delays or increased costs in bringing products to market.
Market Conditions
The overall market conditions, including economic downturns and changes in healthcare policies, could negatively affect funding availability and demand for Soligenix's products. As of September 30, 2024, the company reported an accumulated deficit of $230,983,386, indicating ongoing financial challenges.
Operational Risks
Operational risks include potential disruptions in manufacturing processes and supply chain issues that could delay product development or delivery. As of September 30, 2024, research and development expenses were reported at $2,564,887 for the nine months ended, reflecting ongoing investment in product development.
Financial Risks
Soligenix has incurred substantial net losses, with a reported net loss of $5,279,210 for the nine months ended September 30, 2024. The company utilized $6,170,761 in cash for operating activities during the same period, which raises concerns about liquidity.
Strategic Risks
Strategic decisions, such as entering into partnerships or collaborations, carry inherent risks. The company is exploring additional capital through various means, including public offerings and government grants, but there is no guarantee of success.
Mitigation Strategies
- Securing additional funding through various channels, including government grants, private investments, and strategic partnerships.
- Implementing rigorous compliance and quality assurance processes to navigate regulatory challenges effectively.
- Diversifying product development to mitigate risks associated with reliance on a single product or market segment.
| Risk Factor | Description | Impact on Financial Health |
|---|---|---|
| Industry Competition | High competition in biotechnology sector | Potential loss of market share |
| Regulatory Changes | Changes in FDA regulations | Increased costs and delays |
| Market Conditions | Economic downturns and healthcare policy changes | Reduced funding and product demand |
| Operational Risks | Disruptions in manufacturing and supply chain | Delays in product development |
| Financial Risks | Substantial net losses and cash usage | Liquidity concerns |
| Strategic Risks | Risks associated with partnerships and collaborations | Uncertain funding success |
Overall, Soligenix faces a myriad of risks that could impact its financial health and operational success. Stakeholders must consider these factors when evaluating the company's prospects for growth and sustainability.
Future Growth Prospects for Soligenix, Inc. (SNGX)
Future Growth Prospects for Soligenix, Inc.
Product Innovations: The company is advancing its proprietary therapies, including HyBryte™ for cutaneous T-cell lymphoma (CTCL), aiming to initiate a Phase 3 study by the end of 2024. This study is expected to yield top-line results in the second half of 2026. Additionally, there are ongoing developments in therapies for Behçet’s Disease, oral mucositis, and psoriasis.
Market Expansions: The company is targeting international markets for its product candidates, particularly those addressing rare diseases with significant unmet medical needs. The expansion of its vaccine programs, including CiVax™ for COVID-19 and RiVax® for ricin toxin, further enhances its market presence.
Acquisitions: The company is open to strategic partnerships and acquisitions to bolster its product pipeline and expand its operational capabilities. This includes potential alliances for drug product collaborations and funding opportunities through government contracts and grants.
| Growth Drivers | Current Status | Future Potential |
|---|---|---|
| HyBryte™ Phase 3 Study | Initiation expected by end of 2024 | Top-line results anticipated in H2 2026 |
| Vaccine Programs | Development of CiVax™ and RiVax® | Expansion into broader infectious disease sectors |
| Strategic Partnerships | Ongoing evaluations for collaborations | Potential for enhanced funding and resource sharing |
Revenue Growth Projections: For the nine months ended September 30, 2024, total revenues were reported at $119,371, a significant decline from $594,547 for the same period in 2023, representing an 80% decrease. This drop is attributed to the conclusion of higher-margin grants related to product development.
Earnings Estimates: The net loss for the nine months ended September 30, 2024, was $5,279,210, compared to a net loss of $4,320,835 for the prior year, marking a 22% increase in losses. Research and development expenses increased by 1% to $2,564,887 during this period, reflecting ongoing investments in product development.
Strategic Initiatives and Partnerships: The company is actively pursuing additional capital through public and private equity offerings. As of November 1, 2024, approximately $4.7 million remains available under the AGP Sales Agreement. Recent exercises of existing warrants raised approximately $4.2 million.
Competitive Advantages: The company benefits from a strong intellectual property portfolio, including patent protections and orphan drug exclusivity. Its proprietary heat stabilization technology (ThermoVax®) enhances the viability of its vaccine candidates, positioning it favorably against competitors in the biopharmaceutical space.
Financial Condition: As of September 30, 2024, cash and cash equivalents stood at $9,840,177, up from $8,446,158 at the end of 2023. Working capital also improved to $5,776,645, a 72% increase compared to the previous year.
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Updated on 16 Nov 2024
Resources:
- Soligenix, Inc. (SNGX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Soligenix, Inc. (SNGX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Soligenix, Inc. (SNGX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.