Milestone Pharmaceuticals Inc. (MIST) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001408443

P/B 8.32

P/E -2.94

P/S 0.00

Market Cap 170.50 Mn

ROIC (Qtr) -98.37

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 57.21 Mn

Debt/Equity (Qtr) 2.79

About

Milestone Pharmaceuticals Inc., a biopharmaceutical company, is making strides in the development and commercialization of innovative cardiovascular medicines. The company's lead product candidate, etripamil, is a novel and potent calcium channel blocker designed as a rapid-onset nasal spray to be self-administered by patients. Etripamil is being developed for the treatment of specific heart arrhythmias, including paroxysmal supraventricular tachycardia (PSVT) and atrial fibrillation with rapid ventricular rate (AFib-RVR). Milestone Pharmaceuticals...

Milestone Pharmaceuticals Inc., a biopharmaceutical company, is making strides in the development and commercialization of innovative cardiovascular medicines. The company's lead product candidate, etripamil, is a novel and potent calcium channel blocker designed as a rapid-onset nasal spray to be self-administered by patients. Etripamil is being developed for the treatment of specific heart arrhythmias, including paroxysmal supraventricular tachycardia (PSVT) and atrial fibrillation with rapid ventricular rate (AFib-RVR).

Milestone Pharmaceuticals Inc. is primarily engaged in the development and commercialization of etripamil. This calcium channel blocker is designed to be rapidly metabolized by blood-borne esterases, reducing long-term side effects that may occur with chronic drug therapy. The drug is absorbed into the bloodstream in less than 10 minutes through the inner lining of the nose, yielding a rapid-onset pharmacologic pattern consistent with parenterally administered drugs. Etripamil is intended to empower patients to self-administer treatment outside of a medical setting and as prompted by a patient's symptoms.

The company's primary focus is on developing etripamil for the treatment of PSVT, a serious, markedly symptomatic, and recurring cardiac arrhythmia. PSVT is caused by altered electrical conduction within the heart, involving the AV node and over an abnormal electrical circuit in the substantial majority of cases. Etripamil has been shown to be effective in terminating episodes of PSVT in clinical trials, with a highly statistically significant and clinically meaningful difference in time to SVT conversion compared to placebo.

In addition, Milestone Pharmaceuticals Inc. is developing etripamil for the treatment of AFib-RVR, a common complication of atrial fibrillation that can increase the risk of stroke, heart failure, and other cardiovascular complications. AFib-RVR is characterized by a rapid ventricular rate, often accompanied by palpitations, shortness of breath, dizziness, and weakness. Etripamil has been shown to be effective in reducing ventricular rate and improving symptom relief in patients with AFib-RVR in a Phase 2 clinical trial.

Milestone Pharmaceuticals Inc. is a relatively small company with a market capitalization of around $200 million. The company has a strong pipeline of product candidates, with etripamil being its lead product candidate. The company has completed Phase 3 development for PSVT and is planning to submit a New Drug Application (NDA) to the FDA for approval. The company is also developing etripamil for the treatment of AFib-RVR and is planning to submit a supplemental NDA (sNDA) to the FDA for approval.

The company's competitive advantages include its novel and potent calcium channel blocker, etripamil, which has been shown to be effective in terminating episodes of PSVT and reducing ventricular rate in patients with AFib-RVR. The company's rapid-onset nasal spray formulation allows for self-administration outside of a medical setting, which can improve patient convenience and compliance. Additionally, the company's focus on developing treatments for cardiovascular conditions that have a high unmet need can differentiate it from larger pharmaceutical companies that may have a broader portfolio of products.

The company's customers are primarily healthcare providers, including cardiologists and electrophysiologists, who treat patients with PSVT and AFib-RVR. The company's commercial strategy is focused on partnering with these healthcare providers to promote the use of etripamil and other product candidates in their practices.

Milestone Pharmaceuticals Inc. has a promising future with its lead product candidate, etripamil. The company's focus on developing innovative cardiovascular medicines and its competitive advantages position it well in the industry. With a strong pipeline of product candidates and a commitment to improving patient outcomes, Milestone Pharmaceuticals Inc. is poised for success in the biopharmaceutical industry.

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Analysis

Pros

Healthy cash reserves of 46.69M provide 96.66x coverage of short-term debt 483000, demonstrating strong liquidity position and minimal refinancing risk.
Cash reserves of 46.69M provide robust 4.44x coverage of current liabilities 10.52M, indicating strong short-term solvency.
Short-term investments of 35.90M provide 74.33x coverage of short-term debt 483000, showing strong liquidity management.
Cash position of 46.69M represents healthy 0.61x of working capital 76.15M, demonstrating strong operational liquidity.
Robust R&D investment of 16.53M at 1.02x of SG&A 16.19M demonstrates strong commitment to innovation and future growth.

Cons

Operating cash flow of (43.11M) barely covers its investment activities of 27.88M, with a coverage ratio of -1.55, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
The company's operating cash flow of (43.11M) shows concerning coverage of stock compensation expenses of 5.38M, with a -8.01 ratio indicating potential earnings quality issues.
Free cash flow of (43.15M) provides weak coverage of capital expenditures of 41000, with a -1052.44 ratio suggesting additional external financing needs for growth initiatives.
Operating earnings of (54.24M) show weak coverage of depreciation charges of 106000, with a -511.70 ratio indicating high capital intensity and potential reinvestment needs.
Operating cash flow of (43.11M) barely covers operating expenses of 24.51M with a -1.76 ratio, suggesting thin operational efficiency margins and limited flexibility.

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	2.10	12.31
EV to Cash from Ops.	-4.28	23.25
EV to Debt	3.22	738.44
EV to EBIT	-3.40	-9.16
EV to EBITDA	-3.23	6.95
EV to Free Cash Flow [EV/FCF]	-4.27	21.90
EV to Market Cap	1.08	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	8.32	22.34
Price to Earnings [P/E]	-2.94	-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	-14.38	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	2.38	-27.13
Cash and Equivalents Growth (1y) %	264.76	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-38.20	-46.93
EBITDA Growth (1y) %	-31.48	-1.68
EBIT Growth (1y) %	-38.20	-56.45
EBT Growth (1y) %	-35.65	-12.70
EPS Growth (1y) %	-1.23	-28.31
FCF Growth (1y) %	-35.51	-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	4.44	3.85
Current Ratio	8.24	7.27
Debt to Equity Ratio	2.79	0.40
Interest Cover Ratio	-14.38	841.00
Times Interest Earned	-14.38	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

Milestone Pharmaceuticals Inc. (NASDAQ: MIST)