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Assertio Therapeutics Inc (ASRT)
NASDAQ:ASRT
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Assertio Therapeutics
(NASDAQ:ASRT)
50Neutral
Positive Factors
Clinical Trial Success
Rolvedon-treated patients experienced quick neutrophil count recovery with only 1 patient experiencing febrile neutropenia, showcasing its efficacy and safety.
Product Development
The intent to bring in another branded commercial product for the U.S. market could favorably impact gross margins.
Strategic Initiatives
Management continues to pursue acquisitions of mature and established products, which could provide promotional synergies with Rolvedon.
Negative Factors
Financial Performance
The company recorded a higher-than-expected net loss for the full year 2024, highlighting financial challenges.
Guidance and Forecasts
2025 product revenue guidance represents a 4% year-over-year decline.
Market Competition
Risks include greater-than-anticipated levels of competition and potential failure to optimize key assets' value in non-U.S. markets.
Assertio Therapeutics (ASRT) vs. S&P 500 (SPY)
Market Cap
$58.42M
Dividend YieldN/A
Average Volume (3M)393.01K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-16.23%
EPS Growth91.83%
CountryUS
Employees58
SectorHealthcare
Sector Strength48
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.14
Shares Outstanding95,773,090
10 Day Avg. Volume334,279
30 Day Avg. Volume393,006
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.48
Price to Sales (P/S)0.00
P/FCF Ratio2.21
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.59
Enterprise Value/Ebitda-0.10
Forecast
1Y Price Target
$2.85Price Target Upside359.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Assertio Therapeutics Business Overview & Revenue Model
Company DescriptionAssertio Therapeutics, Inc. (ASRT) is a specialty pharmaceutical company that focuses on the development and commercialization of products for neurology, pain, and inflammation. The company operates primarily in the healthcare and pharmaceuticals sector, offering a portfolio of branded and generic drugs aimed at treating various chronic conditions. Assertio leverages its expertise in drug formulation and delivery technologies to address unmet medical needs and improve patient outcomes.
How the Company Makes MoneyAssertio Therapeutics generates revenue primarily through the sales of its pharmaceutical products. The company's revenue model is centered around the commercialization of both branded and generic medications, which are distributed through various channels including healthcare providers, pharmacies, and wholesalers. Key revenue streams include product sales from their established drug portfolio targeting neurological and inflammatory conditions. Assertio also engages in strategic partnerships and licensing agreements to expand its market reach and optimize its product offerings. These collaborations may involve co-promotion, co-development, and distribution agreements that contribute to its earnings. Additionally, the company focuses on operational efficiency and cost management to enhance profitability.
Assertio Therapeutics Financial Statement Overview
Summary
Assertio Therapeutics' financial health presents a mixed outlook. The income statement highlights significant profitability challenges with negative net income and operational margins. The balance sheet shows moderate leverage but declining equity, while cash flow metrics raise concerns about future cash generation capabilities. The company faces significant challenges in stabilizing revenue and improving profitability.Income Statement
The income statement reveals a declining revenue trend with a significant drop from $152 million in 2023 to $124.9 million in 2024. The company shows negative EBIT and EBITDA margins, indicating operational inefficiencies and challenges in achieving profitability. Despite a high gross profit margin of approximately 68%, the net profit margin remains negative due to high operational costs.45
Neutral
Balance Sheet
Assertio's balance sheet displays moderate stability with a debt-to-equity ratio of 0.32, suggesting manageable leverage. The equity ratio is approximately 42.5%, indicating a decent proportion of assets financed by equity. However, the declining stockholders' equity from $138 million in 2023 to $121 million in 2024 raises concerns about the company's declining net worth.60
Neutral
Cash Flow
The cash flow statement shows a decline in operating cash flow from $49.6 million in 2023 to $26.4 million in 2024, signaling weakening operational cash generation. Despite this, the free cash flow to net income ratio is positive due to the negative net income, but the sustainability of this cash flow is uncertain as it relies on non-recurring items.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 124.96M | 152.07M | 156.23M | 111.01M | 106.28M | Gross Profit |
| 85.73M | 125.05M | 137.49M | 95.18M | 86.40M | EBIT |
| -24.48M | -243.54M | 57.81M | 9.42M | -46.92M | EBITDA |
| -24.48M | -222.45M | 72.53M | 38.78M | -3.20M | Net Income Common Stockholders |
| -21.48M | -331.94M | 109.63M | -1.28M | -28.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.05M | 73.44M | 64.94M | 36.81M | 20.79M | Total Assets |
| 284.73M | 286.42M | 413.91M | 326.55M | 303.27M | Total Debt |
| 39.77M | 40.91M | 66.87M | 73.49M | 84.10M | Net Debt |
| -10.82M | -32.53M | 1.93M | 36.68M | 63.32M | Total Liabilities |
| 163.65M | 148.42M | 188.19M | 224.13M | 247.76M | Stockholders Equity |
| 121.08M | 138.00M | 225.72M | 102.41M | 55.51M |
| Cash Flow | Free Cash Flow | |||
| 26.41M | 48.98M | 78.32M | 5.47M | -65.58M | Operating Cash Flow |
| 26.41M | 49.60M | 78.60M | 5.52M | -65.57M | Investing Cash Flow |
| -48.91M | 3.10M | -42.67M | -18.52M | 512.80M | Financing Cash Flow |
| -350.00K | -44.20M | -7.79M | 29.03M | -468.55M |
Assertio Therapeutics Technical Analysis
Negative
0.62
Price Trends
0.67
Negative
0.75
Negative
0.94
Negative
Market Momentum
-0.01
Negative
45.92
Neutral
34.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASRT, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.67, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASRT.
Assertio Therapeutics Risk Analysis
Assertio Therapeutics disclosed 40 risk factors in its most recent earnings report. Assertio Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Assertio Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $65.65M | ― | -11.67% | ― | 5.82% | 59.86% | |
52 Neutral | $5.21B | 3.49 | -43.30% | 2.83% | 14.70% | -0.24% | |
50 Neutral | $58.42M | ― | -25.19% | ― | -16.23% | 91.83% | |
47 Neutral | $38.28M | ― | -2.12% | ― | 12.82% | 96.46% | |
47 Neutral | $36.76M | ― | -33.25% | ― | -97.33% | -136.16% | |
46 Neutral | $20.80M | ― | -145.04% | ― | -25.39% | 43.88% | |
44 Neutral | $95.10M | ― | 75.79% | ― | 10.19% | 44.46% |
* Healthcare Sector Average
Performance Comparison
ASRT
Assertio Therapeutics
0.62
-0.43
-40.95%
DRRX
Durect
0.67
-0.40
-37.38%
RMTI
Rockwell Med
1.04
-0.66
-38.82%
SCYX
SCYNEXIS
0.97
-1.07
-52.45%
CPIX
Cumberland Pharmaceuticals
5.27
3.68
231.45%
OPTN
Optinose
9.42
-8.13
-46.32%
Assertio Therapeutics Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments like slight outperformance in net product sales and strategic legal settlements, but also highlighted challenges such as declines in Rolvedon, Indocin, and Sympazan sales, alongside increased SG&A expenses and reduced adjusted EBITDA.Q1-2025 Updates
Positive Updates
Slightly Ahead of Plan for Net Product Sales
Net product sales in the first quarter came in slightly ahead of plan at $26 million, and the company is tracking to their full-year net product sales and adjusted EBITDA outlook.
Strong Rolvedon Demand and Expanded Payer Coverage
Rolvedon results were impacted by sell-through of initial stocking activity supporting customer and volume expansion, with expectations for increased net sales and expanded payer coverage starting with Cigna.
Sympazan Prescription Growth
Sympazan prescriptions increased by 6.5% year-over-year, indicating a positive trend expected to continue.
Successful Legal Settlements
Settled multiple prior legal matters and reduced legal exposure, including a significant Department of Justice False Claims Act lawsuit and Glumetza antitrust action.
Simplified Corporate Structure
Simplified corporate holding structure by transferring assets to ATIH Industries LLC, thereby reducing legal liabilities, including opioid litigation.
Negative Updates
Decrease in Rolvedon Sales
Rolvedon sales decreased from $14.5 million to $13.1 million year-over-year, driven by lower pricing despite higher volume.
Indocin Sales Decline
Indocin net product sales were $5.5 million, down from $8.7 million due to impacts from generic competition.
Sympazan Sales Decline
Sympazan sales decreased from $2.6 million to $2.2 million, impacted by pricing and volume.
Increased SG&A Expenses
SG&A expenses rose to $22 million from $18.5 million, primarily due to higher legal charges.
Reduced Adjusted EBITDA
Adjusted EBITDA for the first quarter was $0.2 million, down from $7.4 million in the prior year, reflecting lower net sales and gross margin.
Company Guidance
During the Assertio Holdings First Quarter 2025 Results Conference Call, the company maintained its full-year guidance for net product sales and adjusted EBITDA, projecting ranges of $108 million to $123 million for net sales and $10 million to $19 million for adjusted EBITDA. In Q1 2025, Assertio reported net product sales of $26 million, slightly above their plan, with Rolvedon sales at $13.1 million and Sympazan prescriptions increasing by 6.5% year-over-year. Indocin sales were stable, though impacted by generic competition with sales at $5.5 million. The gross margin increased to 70% from 65% the previous year, and the company ended the quarter with cash and investments totaling $87.3 million. Assertio's strategy includes reducing legal exposure, simplifying corporate structure, and divesting non-core assets, which they aim to complete by the end of 2025 as part of their transformation phase.Assertio Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Assertio Therapeutics Announces Leadership Changes and Board Addition
Positive
Dec 17, 2024
Assertio Holdings announced key leadership changes, appointing Paul Schwichtenberg as Chief Transformation Officer and Mary Pietryga as Chief Commercial Officer, effective December 2024. These appointments, along with Mark Reisenauer’s addition to the Board, are aimed at driving new revenue strategies and market growth, positioning Assertio for continued success.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.