Design Therapeutics (DSGN)
NASDAQ:DSGN
Want to see DSGN full AI Analyst Report?
Top Page
Design Therapeutics
(NASDAQ:DSGN)
Select Model
Select Model
Rating:58Neutral
Price Target:
$15.00
▲(67.79% Upside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by weak financial performance (no revenue, ongoing large losses and cash burn), partially offset by a strong low-debt balance sheet and supportive corporate updates (positive early clinical data and runway into 2029). Technicals are moderately constructive with the stock trading above major moving averages, while valuation remains challenged due to a negative P/E and no stated dividend yield.
Positive Factors
Strong cash runway
Having $222.8M of cash and investments that the company expects will fund operations into 2029 materially reduces near-term financing pressure. This provides durable optionality to complete key trials, pursue registrational paths and negotiate partnerships without immediate dilution risk.
Negative Factors
Pre-revenue with large losses
Design remains pre-revenue with roughly -$70M net loss in 2025/TTM, reflecting sustained operating deficits. Over the medium term this necessitates external funding or major clinical success to avoid dilution; persistent losses also compress retained equity value and limit reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash runway
Having $222.8M of cash and investments that the company expects will fund operations into 2029 materially reduces near-term financing pressure. This provides durable optionality to complete key trials, pursue registrational paths and negotiate partnerships without immediate dilution risk.
Read all positive factors
Design Therapeutics (DSGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$665.17M
Dividend YieldN/A
Average Volume (3M)213.56K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue GrowthN/A
EPS Growth-20.34%
CountryUS
Employees56
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.20
Shares Outstanding62,456,974
10 Day Avg. Volume267,018
30 Day Avg. Volume213,565
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)2.53
Price to Sales (P/S)0.00
P/FCF Ratio-9.86
Enterprise Value/Market Cap0.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-8.79
Forecast
1Y Price Target
$19.60Price Target Upside119.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-1.36
Revenue Forecast (FY)N/A
Design Therapeutics Business Overview & Revenue Model
Company Description
Design Therapeutics (DSGN) is a biotechnology company focused on developing novel therapies for serious degenerative diseases caused by nucleotide repeat expansions. The company operates within the pharmaceutical and biotechnology sectors, leverag...
How the Company Makes Money
Design Therapeutics is a clinical-stage biotech and does not primarily generate recurring revenue from commercial product sales. Its ability to make money is therefore driven mainly by (1) raising capital through equity financings and (2) interest...
Design Therapeutics Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
78
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 0.00 | -622.00K | -596.00K | -537.00K | -466.00K | 0.00 |
| EBITDA | -73.33M | -78.84M | -48.99M | -66.33M | -62.84M | -35.70M |
| Net Income | -69.71M | -69.79M | -49.59M | -66.86M | -63.31M | -35.53M |
Balance Sheet | ||||||
| Total Assets | 230.44M | 226.20M | 252.09M | 289.64M | 341.14M | 390.56M |
| Cash, Cash Equivalents and Short-Term Investments | 222.82M | 219.84M | 245.48M | 281.80M | 330.39M | 384.06M |
| Total Debt | 2.73M | 645.00K | 2.33M | 3.05M | 3.69M | 3.63M |
| Total Liabilities | 12.39M | 13.70M | 10.00M | 11.96M | 13.83M | 8.43M |
| Stockholders Equity | 218.05M | 212.50M | 242.10M | 277.69M | 327.31M | 382.13M |
Cash Flow | ||||||
| Free Cash Flow | -54.12M | -54.55M | -43.45M | -58.82M | -52.23M | -30.91M |
| Operating Cash Flow | -54.00M | -54.36M | -43.10M | -58.56M | -51.32M | -29.38M |
| Investing Cash Flow | 7.45M | 22.91M | 43.95M | 52.54M | -220.99M | -53.64M |
| Financing Cash Flow | 45.65M | 25.74M | 513.00K | 724.00K | 235.00K | 379.21M |
Design Therapeutics Technical Analysis
Negative
8.94
Price Trends
12.38
Negative
11.30
Negative
9.34
Positive
Market Momentum
-0.70
Positive
40.49
Neutral
37.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSGN, the sentiment is Negative. The current price of 8.94 is below the 20-day moving average (MA) of 12.03, below the 50-day MA of 12.38, and below the 200-day MA of 9.34, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 37.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSGN.
Design Therapeutics Risk Analysis
Design Therapeutics disclosed 79 risk factors in its most recent earnings report. Design Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Design Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $665.17M | -9.39 | -33.07% | ― | ― | -20.34% | |
52 Neutral | $685.45M | -3.98 | -78.12% | ― | ― | 7.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $154.61M | -1.10 | -117.86% | ― | -20.31% | -23.75% | |
47 Neutral | $866.73M | -5.23 | -101.19% | ― | ― | -3.74% | |
47 Neutral | $343.14M | -4.05 | -47.48% | ― | ― | 56.00% | |
45 Neutral | $453.82M | -60.63 | -4.21% | ― | 121.11% | 80.74% |
* Healthcare Sector Average
DSGN
Design Therapeutics
10.65
6.74
172.38%
ASMB
Assembly Biosciences
22.90
6.83
42.50%
KRRO
Korro Bio
10.72
-4.13
-27.81%
ANNX
Annexon Biosciences
5.29
2.70
104.25%
AURA
Aura Biosciences Inc
6.63
0.34
5.41%
LXEO
Lexeo Therapeutics, Inc.
4.37
>-0.01
-0.23%
Design Therapeutics Corporate Events
Business Operations and StrategyProduct-Related Announcements
Design Therapeutics reports positive Phase 1/2 DT-216P2 data
Positive
May 18, 2026
On May 18, 2026, Design Therapeutics reported new biomarker and clinical data from its ongoing Phase 1/2 RESTORE-FA trial of DT-216P2 in patients with Friedreich ataxia, in which 16 patients received weekly intravenous doses up to 1 mpk over four ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Design Therapeutics Reports Q1 2026 Results and Pipeline Progress
Positive
Apr 28, 2026
On April 28, 2026, Design Therapeutics reported first-quarter 2026 financial results and operational progress across its GeneTAC pipeline, while also posting an updated investor presentation with a recorded narrative on its website. The company en...
Executive/Board Changes
Design Therapeutics Appoints David Shapiro to Board
Positive
Apr 1, 2026
On March 31, 2026, Design Therapeutics appointed David Shapiro, M.D., to its board of directors as a Class III director, with a term running through the company’s 2027 annual shareholder meeting. He was also named to the board’s Nomina...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.