vTv Therapeutics Inc. (VTVT) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001641489

P/B 3.52

P/E -10.59

P/S 14,620.72

Market Cap 248.55 Mn

ROIC (Qtr) -80.25

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 360,000.00

Debt/Equity (Qtr) 0.01

About

VTv Therapeutics Inc., often recognized by its stock symbol VTVT, is a company that operates within the biopharmaceutical industry. The organization is dedicated to the development of orally administered treatments for metabolic and inflammatory diseases, with a primary focus on type 1 diabetes (T1D) and other metabolic disorders. The company's main business activities revolve around the development of small molecule drug candidates. Their primary product, cadisegliatin (TTP399), is a novel, orally administered, small molecule, liver-selective...

VTv Therapeutics Inc., often recognized by its stock symbol VTVT, is a company that operates within the biopharmaceutical industry. The organization is dedicated to the development of orally administered treatments for metabolic and inflammatory diseases, with a primary focus on type 1 diabetes (T1D) and other metabolic disorders.

The company's main business activities revolve around the development of small molecule drug candidates. Their primary product, cadisegliatin (TTP399), is a novel, orally administered, small molecule, liver-selective glucokinase activator (GKA) designed for the treatment of T1D. This drug has demonstrated promising results in clinical trials, showing a statistically significant improvement in HbA1c and a clinically meaningful decrease in the frequency of severe and symptomatic hypoglycemia.

VTv Therapeutics has a competitive advantage in the development of orally administered treatments for T1D, particularly with cadisegliatin. The company's liver-selective GKA approach offers a unique mechanism of action that may improve glucose control and reduce the risk of hypoglycemia. Key competitors in this space include established players such as Eli Lilly and Company, Novo Nordisk A/S, and Sanofi, all of which have a strong presence in the diabetes market and a range of approved products for T1D treatment.

In addition to cadisegliatin, the company has other pipeline candidates. These include TTP273, a GLP-1 receptor agonist (GLP-1RA) for the treatment of cystic fibrosis related diabetes (CFRD). The company is currently exploring options to study the therapeutic potential of TTP273 in patients with CFRD.

VTv Therapeutics generates revenue through the development and commercialization of its proprietary drug candidates. The company has raised funds through the sale of its common stock and the issuance of warrants, and has also received funding from collaborations and license agreements. For instance, they have a collaboration agreement with G42 Investments AI Holding RSC Ltd. to develop and commercialize cadisegliatin in the Middle East region.

The company's product portfolio includes cadisegliatin (TTP399), a novel, orally administered, small molecule, liver-selective glucokinase activator (GKA) for the treatment of T1D, and TTP273, a GLP-1 receptor agonist (GLP-1RA) for the treatment of cystic fibrosis related diabetes (CFRD). The company is also developing HPP737, a PDE4 inhibitor for the treatment of inflammatory lung diseases, in partnership with Newsoara Biopharma, and azeliragon, a PDE4 inhibitor for the treatment of glioblastoma and other inflammatory lung diseases, in partnership with Cantex Pharmaceuticals, Inc.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 98.50M provide 273.62x coverage of short-term debt 360000, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 99.49M provides 276.37x coverage of total debt 360000, indicating robust asset backing and low credit risk.
Operating cash flow of (20.83M) provides strong 91.76x coverage of operating expenses (227000), showing operational efficiency.
Cash reserves of 98.50M provide robust 9.69x coverage of current liabilities 10.16M, indicating strong short-term solvency.
Cash reserves of 98.50M provide solid 5.24x coverage of other non-current liabilities 18.79M, indicating strong liquidity.

Cons

Investment activities of 0 provide weak support for R&D spending of 16.19M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
The company's operating cash flow of (20.83M) shows concerning coverage of stock compensation expenses of 3.58M, with a -5.83 ratio indicating potential earnings quality issues.
Operating earnings of (23.46M) show weak coverage of depreciation charges of 36000, with a -651.81 ratio indicating high capital intensity and potential reinvestment needs.
Free cash flow of (20.83M) represents just -63.50x of debt issuance 328000, suggesting concerning reliance on leverage rather than internal cash generation for growth.
High financing cash flow of 77.76M relative to working capital of 89.29M, which is 0.87x suggests concerning dependence on external funding for operational needs.

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	2.24	12.31
EV to Cash from Ops.	-10.69	23.25
EV to Debt	618.64	738.44
EV to EBIT	-9.49	-9.16
EV to EBITDA	-7.54	6.95
EV to Free Cash Flow [EV/FCF]	-10.69	21.90
EV to Market Cap	0.90	65.67
EV to Revenue	13,100.55	227.32
Price to Book Value [P/B]	3.52	22.34
Price to Earnings [P/E]	-10.59	-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	-4,693.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-27.13
Cash and Equivalents Growth (1y) %	136.95	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-28.23	-46.93
EBITDA Growth (1y) %	-22.17	-1.68
EBIT Growth (1y) %	-28.94	-56.45
EBT Growth (1y) %	-28.91	-12.70
EPS Growth (1y) %	27.81	-28.31
FCF Growth (1y) %	10.97	-31.90
Gross Profit Growth (1y) %	-98.30	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	9.69	3.85
Current Ratio	9.79	7.27
Debt to Equity Ratio	0.01	0.40
Interest Cover Ratio	-4,693.00	841.00
Times Interest Earned	-4,693.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-137,817.60	-18,234.31
EBIT Margin %	-138,029.41	-18,580.80
EBT Margin %	-138,058.82	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-138,058.80	-19,439.22

vTv Therapeutics Inc. (NASDAQ: VTVT)