Disc Medicine (IRON) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 373.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: N/A
• EPS Growth: -14.19%
• Country: US
• Employees: 94
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -1.02
• Shares Outstanding: 34,634,296
• 10 Day Avg. Volume: 432,119
• 30 Day Avg. Volume: 373,862
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.49
• Enterprise Value/Market Cap: -0.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.57K
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: $93.50
• Price Target Upside: 79.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 43 Neutral
• Price Target: ―

Disc Medicine's stock score reflects the challenges faced by biotechnology firms in early stages, with significant cash burn and negative earnings. However, a strong cash position and low leverage provide some financial stability. Technical indicators suggest mixed signals with short-term consolidation but potential longer-term weakness. Valuation metrics indicate current unprofitability, a common trait for growth-focused biotech companies.

Positive Factors

Clinical Trials

The initiation of the APOLLO trial further bolsters confidence in an on-time submission for Bitopertin's NDA.

Expert Endorsement

The webcast event featured commentary from two renowned hematologist-oncologists, indicating strong expert endorsement for DISC-0974 in MF anemia.

Market Opportunities

The attractive market opportunity for therapeutics in MF is highlighted by JAK inhibitors generating significant sales, despite having little to no effect on treating patients with anemia.

Negative Factors

Innovation Needs

There is a clear need for new therapies with over 50% of ruxolitinib treated MF patients on suboptimal doses and most discontinuations stemming from anemia.

Investor Sentiment

Recent share selloff continues to provide an attractive entry for Disc investors.

Short Interest

Short Interest as a percentage of float is 14.7%.

Disc Medicine Business Overview & Revenue Model

Company Description

Disc Medicine, Inc., a clinical-stage biotechnology company, engages in discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases. It builds a portfolio of therapeutic candidates that address a spectrum of hematologic diseases by targeting fundamental biological pathways of red blood cell biology, primarily heme biosynthesis and iron homeostasis. The company is based in Watertown, Massachusetts.

How the Company Makes Money

Disc Medicine generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in research and development activities to bring new therapies to market, which involve clinical trials and regulatory approval processes. Once a drug is approved, Disc Medicine can earn revenue through direct sales, licensing agreements, and partnerships with other pharmaceutical companies. These collaborations can include milestone payments, royalties, and co-promotion deals. Additionally, the company may receive funding from grants or investment partnerships that support its research initiatives.

Disc Medicine Financial Statement Overview

Summary

Disc Medicine's financials reflect a biotechnology company in its growth phase, focused on research and development with no current revenue streams. While the company has a solid cash position and low leverage, the ongoing losses and cash burn are significant risks. Investors should weigh the potential for future profitability against current financial challenges.

Income Statement

The company has shown consistent negative net income and lacks revenue generation, which is typical for early-stage biotechnology firms. The EBIT and EBITDA margins are negative and have worsened over time, indicating increasing operational costs without revenue offset.

Balance Sheet

The company has a strong cash position relative to its debt, reflected in a negative net debt. However, the stockholders' equity is significantly high compared to total assets, indicating a favorable equity ratio. The debt-to-equity ratio is low, showing limited leverage risk, but the company has negative earnings, impacting return on equity.

Cash Flow

The operating cash flow is negative, and the free cash flow has decreased, indicating continued cash burn. However, the company maintains a solid cash buffer from previous financing activities, which offsets immediate liquidity concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-110.00K	-156.00K	-100.00K	-300.00K	-192.00K	-322.00K
	EBIT
-138.20M	-129.72M	-91.13M	-47.48M	-30.93M	-34.04M
	EBITDA
-109.89M	-108.27M	-91.03M	-46.53M	-35.78M	-33.69M
	Net Income Common Stockholders
-116.49M	-109.36M	-76.43M	-46.09M	-41.01M	-47.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
694.66M	489.88M	360.38M	194.61M	88.04M	1.21M
	Total Assets
709.27M	496.77M	368.00M	200.21M	92.41M	122.09M
	Total Debt
30.64M	30.00M	2.10M	1.33M	1.65M	21.64M
	Net Debt
-92.03M	-162.43M	-358.28M	-193.28M	-86.38M	20.43M
	Total Liabilities
48.90M	53.19M	22.88M	23.61M	156.61M	4.82M
	Stockholders Equity
660.36M	443.59M	345.12M	176.60M	-64.20M	117.27M
Cash Flow		Free Cash Flow
-102.99M	-94.43M	-73.55M	-42.40M	-27.60M	-32.73M
	Operating Cash Flow
-101.70M	-93.93M	-73.46M	-42.25M	-27.53M	-32.71M
	Investing Cash Flow
-564.90M	-292.33M	-89.00K	-151.00K	-68.00K	-22.00K
	Financing Cash Flow
446.67M	218.31M	239.38M	148.98M	89.93M	34.25M

Disc Medicine Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 52.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRON, the sentiment is Neutral. The current price of 52.02 is above the 20-day moving average (MA) of 49.16, above the 50-day MA of 46.11, and below the 200-day MA of 53.00, indicating a neutral trend. The MACD of 1.41 indicates Negative momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 69.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IRON.

Disc Medicine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCRX	66 Neutral	$2.15B	―	18.68%	―	41.67%	75.79%
AGIO	61 Neutral	$2.07B	3.17	60.26%	―	25.96%	―
IMCR	61 Neutral	$1.65B	―	-5.78%	―	25.50%	64.63%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ARQT	52 Neutral	$1.60B	―	-70.58%	―	100.03%	64.22%
BEAM	45 Neutral	$1.67B	―	-38.04%	―	-82.38%	-164.76%
IRON	43 Neutral	$1.80B	―	-23.34%	―	―	-14.19%

Disc Medicine Corporate Events

Disc Medicine Advances Bitopertin Trial for EPP

On January 21, 2025, Disc Medicine announced positive feedback from the FDA regarding their APOLLO post-marketing confirmatory trial for bitopertin, a treatment for erythropoietic protoporphyria (EPP) and X-linked protoporphyria (XLP). The meeting resulted in alignment on the trial design, which includes key features such as co-primary endpoints and a double-blind, placebo-controlled study. The company plans to initiate the trial by mid-2025 and anticipates submitting a New Drug Application in the second half of 2025 under the Accelerated Approval Program. This development marks a significant step forward in potentially providing a life-changing therapy for EPP patients, enhancing Disc Medicine’s position in the biopharmaceutical industry.