Atea Pharmaceuticals, Inc. (AVIR) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001593899

P/B 0.83

P/E -1.78

P/S 0.00

Market Cap 261.65 Mn

ROIC (Qtr) -48.57

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 1.05 Mn

Debt/Equity (Qtr) 0.00

About

Atea Pharmaceuticals, Inc., often recognized by its ticker symbol AVIR, is a clinical-stage biopharmaceutical company that specializes in the discovery and development of novel orally administered product candidates to treat serious viral diseases. The company operates within the biopharmaceutical industry and conducts its main business activities in the realm of discovering and developing antiviral product candidates. Atea Pharmaceuticals' operations span across various countries and regions, with a primary focus on developing treatments for COVID-19...

Atea Pharmaceuticals, Inc., often recognized by its ticker symbol AVIR, is a clinical-stage biopharmaceutical company that specializes in the discovery and development of novel orally administered product candidates to treat serious viral diseases. The company operates within the biopharmaceutical industry and conducts its main business activities in the realm of discovering and developing antiviral product candidates. Atea Pharmaceuticals' operations span across various countries and regions, with a primary focus on developing treatments for COVID-19 and HCV infection.

Atea Pharmaceuticals generates revenue through the development and commercialization of its primary products, bemnifosbuvir and ruzasvir. Bemnifosbuvir is an investigational, novel, orally administered double prodrug of a guanosine nucleotide analog, while ruzasvir is an NS5A inhibitor. These products are designed to be used in outpatient and inpatient settings and are intended to be used in combination with other treatments as part of a comprehensive treatment plan. The company's customer base includes patients with COVID-19 and HCV infection, as well as healthcare providers and payers.

In terms of its position within the industry, Atea Pharmaceuticals competes with other biopharmaceutical companies that are developing antiviral product candidates for the treatment of COVID-19 and HCV infection. The company's competitive advantage lies in its focus on discovering and developing novel orally administered antiviral product candidates, which differentiates it from companies that focus on other methods of treatment administration.

The company's products are used to treat a variety of patients, although specific names of customers are not mentioned in the provided text. However, the company's customer base includes patients with COVID-19 and HCV infection, as well as healthcare providers and payers.

Atea Pharmaceuticals' product portfolio includes bemnifosbuvir and ruzasvir. Bemnifosbuvir is an investigational oral, potent inhibitor of HCV NS5B RdRp, while ruzasvir is an investigational oral, potent, pan-genotypic NS5A inhibitor. The combination of these two products has the potential to improve on the SVR12 rates observed in prior studies conducted by Merck.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 77.34M provide 92.96x coverage of short-term debt 832000, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 342.96M provides 328.19x coverage of total debt 1.04M, indicating robust asset backing and low credit risk.
Short-term investments of 251.97M provide solid 15.92x coverage of other current liabilities 15.83M, indicating strong liquidity.
Tangible assets of 342.96M provide robust 21.67x coverage of other current liabilities 15.83M, indicating strong asset backing.
Cash reserves of 77.34M provide robust 3.83x coverage of current liabilities 20.18M, indicating strong short-term solvency.

Cons

Operating cash flow of (134.21M) barely covers its investment activities of 138.83M, with a coverage ratio of -0.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 138.83M provide weak support for R&D spending of 125.88M, which is 1.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 251.97M significantly exceed cash reserves of 77.34M, which is 3.26x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (134.21M) shows concerning coverage of stock compensation expenses of 30.43M, with a -4.41 ratio indicating potential earnings quality issues.
Operating cash flow of (134.21M) provides minimal -161.50x coverage of tax expenses of 831000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.51	12.31
EV to Cash from Ops.	-1.31	23.25
EV to Debt	167.64	738.44
EV to EBIT	-1.20	-9.16
EV to EBITDA	-1.06	6.95
EV to Free Cash Flow [EV/FCF]	-1.31	21.90
EV to Market Cap	0.67	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	0.83	22.34
Price to Earnings [P/E]	-1.78	-11.77

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-27.13
Cash and Equivalents Growth (1y) %	-21.45	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	15.51	-46.93
EBITDA Growth (1y) %	17.75	-1.68
EBIT Growth (1y) %	15.47	-56.45
EBT Growth (1y) %	15.47	-12.70
EPS Growth (1y) %	14.49	-28.31
FCF Growth (1y) %	-5.73	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	3.83	3.85
Current Ratio	16.66	7.27
Debt to Equity Ratio	0.00	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Atea Pharmaceuticals, Inc. (NASDAQ: AVIR)