EyePoint Pharmaceuticals, Inc. (EYPT) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001314102

P/B 5.48

P/E -5.33

P/S 25.90

Market Cap 1.10 Bn

ROIC (Qtr) -89.24

Div Yield % 0.00

Rev 1y % (Qtr) -90.82

Total Debt (Qtr) 21.30 Mn

Debt/Equity (Qtr) 0.11

About

EyePoint Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, operates in the industry of developing and commercializing therapeutics for retinal diseases. The company's main business activities involve developing and commercializing therapeutics for retinal diseases, with a focus on sustained delivery technologies. EyePoint's primary products are EYP-1901, a sustained delivery treatment for anti-vascular endothelial growth factor (anti-VEGF) mediated retinal diseases, and YUTIQ, a once every three-year treatment for chronic non-infectious...

EyePoint Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, operates in the industry of developing and commercializing therapeutics for retinal diseases. The company's main business activities involve developing and commercializing therapeutics for retinal diseases, with a focus on sustained delivery technologies. EyePoint's primary products are EYP-1901, a sustained delivery treatment for anti-vascular endothelial growth factor (anti-VEGF) mediated retinal diseases, and YUTIQ, a once every three-year treatment for chronic non-infectious uveitis affecting the posterior segment of the eye.

The company's Durasert technology provides for the development of a miniaturized solid cylinder of drug that can be delivered through a standard intravitreal (IVT) injection. This technology allows for the production of a solid, injectable, sustained release insert of a drug compound, which has been successfully used in four FDA-approved products, including YUTIQ, ILUVIEN, Retisert, and Vitrasert. EyePoint's product candidates are being developed to address significant unmet medical needs in the treatment of retinal diseases. EYP-1901 is being evaluated in Phase 2 clinical trials for wet age-related macular degeneration (wet AMD), non-proliferative diabetic retinopathy (NPDR), and diabetic macular edema (DME). The company's Phase 2 clinical trial, DAVIO 2, has reported positive topline results, demonstrating non-inferiority in change in best-corrected visual acuity (BCVA) compared to aflibercept control, as well as a reduction in treatment burden and a strong anatomical control.

EyePoint's competitive advantages include its proprietary Durasert technology, which provides for sustained delivery of drugs over periods of months to years, and its lead product candidate, EYP-1901, which has demonstrated encouraging neuroprotection data in preclinical in-vivo studies. The company's pipeline is focused on developing treatments for serious retinal diseases, including wet AMD, NPDR, and DME, which are significant causes of vision loss and blindness. EyePoint's customers include patients with retinal diseases, ophthalmologists, and other healthcare providers. The company's products are designed to improve patient outcomes by providing sustained delivery of drugs, reducing treatment burden, and improving anatomical control.

The company generates revenue through the sale of its products, including YUTIQ and DEXYCU, as well as through licensing agreements with other companies. EyePoint has licensed its Durasert technology to Alimera, a pharmaceutical company, for the development and commercialization of ILUVIEN, a sustained-release micro-insert for the treatment of diabetic macular edema. EyePoint's manufacturing process is subject to Current Good Manufacturing Practice (cGMP) regulations, which ensure the quality and purity of the company's products. The company's research and development efforts are focused on developing new products and technologies to treat retinal diseases. EyePoint has a strong intellectual property portfolio, with patents and patent applications covering its Durasert technology and other products.

EyePoint's human capital resources are critical to the company's success. The company has a diverse team of employees with expertise in clinical development, regulatory, manufacturing, and other functional areas. EyePoint is committed to attracting and retaining top talent and provides a comprehensive benefits package, including competitive pay, equity grants, performance bonuses, healthcare benefits, retirement, and wellness programs. In the pharmaceutical industry, regulatory approval is a critical step in bringing a new drug to market. The FDA regulates the development and marketing of pharmaceuticals through a variety of mechanisms, including preclinical testing, clinical trials, and post-approval surveillance. EyePoint Pharmaceuticals, Inc. is dedicated to improving the lives of patients with serious retinal diseases by developing and commercializing therapeutics that address significant unmet medical needs in the treatment of retinal diseases.

References:
EyePoint Pharmaceuticals, Inc. (2021). SEC Filing. Retrieved from <https://sec.report/Document/0001193125-21-118562/>

Stock Price Chart

Analysis

Pros

Strong tangible asset base of 251.69M provides 11.82x coverage of total debt 21.30M, indicating robust asset backing and low credit risk.
Short-term investments of 129.44M provide solid 6.47x coverage of other current liabilities 20.02M, indicating strong liquidity.
Tangible assets of 251.69M provide robust 12.57x coverage of other current liabilities 20.02M, indicating strong asset backing.
Cash reserves of 74.73M provide solid 633.28x coverage of other non-current liabilities 118000, indicating strong liquidity.
Cash reserves of 74.73M provide robust 2.48x coverage of current liabilities 30.09M, indicating strong short-term solvency.

Cons

Operating cash flow of (210.91M) barely covers its investment activities of 47.28M, with a coverage ratio of -4.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 47.28M provide weak support for R&D spending of 205.20M, which is 0.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
The company's operating cash flow of (210.91M) shows concerning coverage of stock compensation expenses of 29.02M, with a -7.27 ratio indicating potential earnings quality issues.
Operating cash flow of (210.91M) provides minimal -1152.52x coverage of tax expenses of 183000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
Free cash flow of (213.59M) provides weak coverage of capital expenditures of 2.68M, with a -79.76 ratio suggesting additional external financing needs for growth initiatives.

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	4.16	12.31
EV to Cash from Ops.	-4.97	23.25
EV to Debt	49.16	738.44
EV to EBIT	-5.09	-9.16
EV to EBITDA	-4.84	6.95
EV to Free Cash Flow [EV/FCF]	-4.90	21.90
EV to Market Cap	0.95	65.67
EV to Revenue	24.73	227.32
Price to Book Value [P/B]	5.48	22.34
Price to Earnings [P/E]	-5.33	-11.77

Dividend Metrics

Metric	Value	Industry
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	-14,682.50	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	41.16	-27.13
Cash and Equivalents Growth (1y) %	-6.57	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-98.65	-46.93
EBITDA Growth (1y) %	-86.77	-1.68
EBIT Growth (1y) %	-98.63	-56.45
EBT Growth (1y) %	-98.64	-12.70
EPS Growth (1y) %	-50.75	-28.31
FCF Growth (1y) %	-80.95	-31.90
Gross Profit Growth (1y) %	-4.75	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.17	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	2.48	3.85
Current Ratio	7.18	7.27
Debt to Equity Ratio	0.11	0.40
Interest Cover Ratio	-14,682.50	841.00
Times Interest Earned	-14,682.50	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-480.60	-18,234.31
EBIT Margin %	-485.49	-18,580.80
EBT Margin %	-485.52	-19,488.74
Gross Margin %	94.10	-7.59
Net Profit Margin %	-486.00	-19,439.22

EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT)