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Zevra Therapeutics (ZVRA)
NASDAQ:ZVRA
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Zevra Therapeutics
(NASDAQ:ZVRA)
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Rating:53Neutral
Price Target:
$9.50
▲(23.86% Upside)
Zevra Therapeutics' overall stock score is primarily influenced by its strong revenue growth and strategic financial maneuvers, as highlighted in the earnings call. However, the stock faces significant challenges, including negative profitability, bearish technical indicators, and cash flow difficulties. Addressing these issues will be crucial for improving its financial health and stock performance.
Positive Factors
Revenue Growth
Strong revenue growth reflects robust demand for Zevra's products, indicating successful market penetration and potential for sustained financial performance.
Strategic Financial Maneuvers
The sale of the PRV enhances Zevra's financial flexibility, allowing for reinvestment in R&D and strategic initiatives, supporting long-term growth.
European Expansion
The European expansion for arimoclomol represents a significant growth opportunity, potentially opening new revenue streams and increasing market presence.
Negative Factors
Negative Profitability
Negative profitability and cash flow issues can hinder Zevra's ability to invest in growth and innovation, impacting long-term financial health.
Slow Product Adoption
Slow adoption of OLPRUVA indicates potential challenges in market acceptance, which could limit revenue growth and product success.
Increased SG&A Expenses
Rising SG&A expenses may pressure margins and profitability, requiring effective cost management to maintain financial stability.
Zevra Therapeutics (ZVRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$430.56M
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth158.57%
EPS Growth96.76%
CountryUS
Employees59
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)1.21
Shares Outstanding56,135,090
10 Day Avg. Volume1,822,078
30 Day Avg. Volume1,736,027
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue5.52
Enterprise Value/Gross Profit7.67
Enterprise Value/Ebitda-2.97
Forecast
1Y Price Target
$24.00Price Target Upside212.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Zevra Therapeutics Business Overview & Revenue Model
Company DescriptionZevra Therapeutics, Inc., a rare disease company melding science, discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company utilizes its Ligand Activated Therapy technology to generate improved prodrug versions of FDA-approved drugs, as well as to generate prodrug versions of existing compounds that may have applications for new disease indications. Its prodrug product candidate pipeline is focused on the high need areas of attention deficit hyperactivity disorder, stimulant use disorder, and CNS rare diseases, including idiopathic hypersomnia (IH). The company's lead product candidate KP1077, which is under Phase II clinical trial for the treatment of IH and narcolepsy, is based on its prodrug of d-methylphenidate, known as serdexmethylphenidate. It is also developing KP879, a prodrug product candidate for the treatment of stimulant use disorder and is under Phase II clinical trial. In addition, the company has received FDA approval for AZSTARYS, a once-daily treatment for attention deficit hyperactivity disorder in patents age six years and older, and for APADAZ, an immediate-release combination product containing benzhydrocodone, a prodrug of hydrocodone, and acetaminophen. The company's product pipeline include, arimoclomol It has collaboration and license agreement with KVK-Tech, Inc. and Commave Therapeutics SA. The company was formerly known as KemPharm, Inc. and changed its name to Zevra Therapeutics, Inc. in February 2023. Zevra Therapeutics, Inc. was incorporated in 2006 and is headquartered in Celebration, Florida.
How the Company Makes MoneyZevra Therapeutics generates revenue primarily through the commercialization of its pharmaceutical products, which involves selling approved therapies to healthcare providers and patients. The company may also engage in licensing agreements and partnerships with larger pharmaceutical companies for the co-development and distribution of its drugs, providing additional revenue streams through upfront payments, milestone payments, and royalties on future sales. Additionally, funding from government grants and research institutions to support clinical trials can contribute to its earnings. As Zevra advances its drug candidates through clinical trials and regulatory approvals, successful product launches and market penetration are critical for driving its financial performance.
Zevra Therapeutics Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
Zevra demonstrated strong financial performance with significant revenue growth from MIPLYFFA and strategic financial maneuvers, including the sale of PRV. The expansion efforts in Europe and increased coverage and retention rates for MIPLYFFA indicate positive momentum. However, challenges remain with the slow adoption of OLPRUVA and increased SG&A expenses. The limited progress in the DiSCOVER trial enrollment also poses a concern. Overall, the positive aspects outweigh the negatives, but challenges still need to be addressed.Q2-2025 Updates
Positive Updates
Strong Financial Performance in Q2 2025
Net revenue reached $25.9 million, with a 26% increase in MIPLYFFA net revenue quarter-over-quarter, reflecting robust demand for the product.
Strategic Sale of PRV
Completed the sale of PRV for $150 million, which significantly strengthened Zevra's balance sheet.
U.S. Launch Success of MIPLYFFA
Achieved notable success with 129 prescription enrollment forms for MIPLYFFA and reached over a third of diagnosed Niemann-Pick Disease Type C (NPC) patients in the U.S.
European Expansion for Arimoclomol
Submitted a marketing authorization application for arimoclomol in Europe, marking a significant milestone in geographic expansion efforts.
Increased Coverage and Retention for MIPLYFFA
Achieved 52% coverage for MIPLYFFA and demonstrated strong retention rates among patients.
Strong Cash Position
Total cash, cash equivalents, and investments reached $217.7 million as of June 30, 2025, compared to $68.7 million at the end of the prior quarter.
Negative Updates
Slow Adoption of OLPRUVA
Continued slow adoption of OLPRUVA with only one prescription enrollment form in the second quarter, resulting in a noncash charge of $58.7 million for impairment.
Increased SG&A Expenses
SG&A expenses increased by $8.2 million due to professional fees related to a proxy contest and expenses associated with commercial activities.
Limited Progress in DiSCOVER Trial Enrollment
Only 7 patients enrolled in the DiSCOVER trial for celiprolol, bringing the total to 39 out of 150 required for complete enrollment.
Company Guidance
During Zevra's second quarter 2025 financial results call, key metrics highlighted included a net revenue of $25.9 million, reflecting strong demand and effective operational execution. The company completed the sale of a Priority Review Voucher (PRV) for $150 million, which bolstered their balance sheet. They submitted a marketing authorization application for arimoclomol in Europe, marking a significant milestone in their geographic expansion. The U.S. launch of MIPLYFFA, a treatment for Niemann-Pick Disease Type C, was successful with 129 prescription forms by the end of Q2, reaching over a third of diagnosed patients in the U.S. MIPLYFFA's net revenue grew by 26% quarter-over-quarter, driven by robust demand and a strong reimbursement strategy. They also reported $3.2 million in adjusted net loss, excluding noncash charges, and held cash and equivalents of $217.7 million as of June 30, 2025.Zevra Therapeutics Financial Statement Overview
Summary
Zevra Therapeutics shows strong revenue growth and a solid gross profit margin, indicating potential for future profitability. However, challenges with negative operating margins and cash flow difficulties could impact financial stability. Improved debt-to-equity ratio suggests better leverage management, but overall profitability remains a concern.Income Statement
Zevra Therapeutics shows a strong revenue growth rate of 52.8% in the TTM, indicating robust top-line expansion. The gross profit margin is healthy at 71.96%, reflecting efficient cost management. However, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins, suggesting operational challenges. The net profit margin has improved to 4.26% in the TTM, showing some progress in controlling expenses.65
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.53 in the TTM, indicating a more balanced capital structure compared to previous periods. Return on equity is modest at 3.95%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 45.74%, suggesting a stable financial position with a reasonable proportion of assets financed by equity.55
Neutral
Cash Flow
Zevra Therapeutics faces challenges with negative operating and free cash flows in the TTM, indicating cash flow difficulties. The free cash flow to net income ratio is slightly above 1, suggesting that the company is generating cash flow in line with its net income. However, the negative free cash flow growth rate of -24.74% highlights ongoing cash flow management issues.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.02M | 23.61M | 27.46M | 10.16M | 28.65M | 13.29M |
| Gross Profit | 44.63M | 16.20M | 24.52M | 9.94M | 26.59M | 11.98M |
| EBITDA | -115.16M | -76.40M | -43.54M | -25.53M | -7.89M | -5.43M |
| Net Income | 2.64M | -105.51M | -46.05M | -26.77M | -8.55M | -12.76M |
Balance Sheet | ||||||
| Total Assets | 256.28M | 178.13M | 172.33M | 115.53M | 132.94M | 11.21M |
| Cash, Cash Equivalents and Short-Term Investments | 47.71M | 69.50M | 67.74M | 82.85M | 112.35M | 4.21M |
| Total Debt | 62.28M | 60.30M | 43.77M | 14.12M | 1.61M | 70.35M |
| Total Liabilities | 139.05M | 138.46M | 110.46M | 40.22M | 5.82M | 77.62M |
| Stockholders Equity | 117.23M | 39.67M | 61.86M | 75.12M | 127.12M | -66.41M |
Cash Flow | ||||||
| Free Cash Flow | -46.53M | -69.67M | -33.83M | -18.81M | 10.34M | -1.97M |
| Operating Cash Flow | -46.21M | -69.67M | -33.53M | -18.72M | 10.44M | -1.94M |
| Investing Cash Flow | -14.35M | -22.16M | -17.39M | -36.72M | -15.52M | -33.00K |
| Financing Cash Flow | 68.55M | 82.11M | 28.46M | 8.35M | 113.11M | 2.74M |
Zevra Therapeutics Technical Analysis
Negative
7.67
Price Trends
10.08
Negative
9.47
Negative
8.71
Negative
Market Momentum
-0.68
Positive
33.75
Neutral
31.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZVRA, the sentiment is Negative. The current price of 7.67 is below the 20-day moving average (MA) of 8.47, below the 50-day MA of 10.08, and below the 200-day MA of 8.71, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 33.75 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZVRA.
Zevra Therapeutics Risk Analysis
Zevra Therapeutics disclosed 67 risk factors in its most recent earnings report. Zevra 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
Zevra Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | 883.04M | -7.99 | -13.37% | ― | 0.00% | 0.00% | |
59 Neutral | 1.01B | -13.62 | 0.00% | ― | 0.00% | 0.00% | |
55 Neutral | 803.44M | -2.39 | -43.42% | ― | -76.27% | 22.77% | |
53 Neutral | $430.56M | ― | 3.53% | ― | 158.57% | 96.76% | |
40 Underperform | 284.47M | -1.98 | 0.00% | ― | 0.00% | 10.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
ZVRA
Zevra Therapeutics
7.67
0.09
1.19%
OMER
Omeros
4.18
0.41
10.88%
RLAY
Relay Therapeutics
4.66
-2.77
-37.28%
UPB
Upstream Bio, Inc.
16.38
-7.00
-29.94%
MAZE
Maze Therapeutics, Inc.
22.94
7.94
52.93%
SION
Sionna Therapeutics, Inc.
23.14
0.90
4.05%
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.