EPS of $-0.35 increased by 79.5% from previous year
Gross margin of 100.0%
Net income of -9.52M
"Shawn Singh: "We are also exploring the therapeutic potential of itruvone, a differentiated therapy that can expedite relief for patients suffering from major depressive disorder......."" - Shawn Singh
VistaGen Therapeutics Inc (VTGN) Q4 2024 Financial Results: Strategic Milestones and Challenges in CNS Therapeutics
Executive Summary
In Q4 2024, VistaGen Therapeutics Inc reported a revenue of $197,300, a notable decline compared to previous quarters due to the transitional phase of clinical trials. The company achieved significant milestones, especially with its PALISADE-2 Phase 3 trial validation, marking a pioneering achievement in treating social anxiety disorder (SAD). However, losses continue to reflect the heavy R&D investments, totaling approximately $7.4 million in this quarter. Looking ahead, management is optimistic about advancing the PALISADE-3 trial and the potential market impact of their pipeline, while also addressing the ongoing cash burn and operational efficiency in this competitive biotech landscape.
Key Performance Indicators
Revenue
197.30K
QoQ: -52.04% | YoY:12.36%
Gross Profit
197.30K
1.00% margin
QoQ: -52.04% | YoY:12.36%
Operating Income
-11.36M
QoQ: -44.08% | YoY:7.19%
Net Income
-9.52M
QoQ: -49.95% | YoY:22.13%
EPS
-0.35
QoQ: 18.60% | YoY:79.53%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $197,300 (down 52.04% QoQ), signaling transitions in trial phases rather than commercial traction.
**Gross Profit**: $197,300.
**EBITDA**: -$11,212,800, related to significant expenditures in clinical trials.
**Net Income**: -$9,521,400 (Net Income Ratio: -48.26%).
**EPS**: -$0.35, consistent with the loss trajectory but shows a year-over-year improvement in percentage terms.
Financial Highlights
### Revenue Performance
- Revenue: $197,300 (down 52.04% QoQ), signaling transitions in trial phases rather than commercial traction.
- Gross Profit: $197,300.
### Profitability Metrics
- EBITDA: -$11,212,800, related to significant expenditures in clinical trials.
- Net Income: -$9,521,400 (Net Income Ratio: -48.26%).
- EPS: -$0.35, consistent with the loss trajectory but shows a year-over-year improvement in percentage terms.
### Cash Flow and Balance Sheet
- Cash at End of Period: $119,166,000, supporting ongoing operations.
- Total Liabilities: $9,367,000 against a strong equity base of $114,286,000.
- Current Ratio: 23.54, indicating substantial liquidity to cover short-term obligations.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
197.30K
12.36%
-52.04%
Gross Profit
197.30K
12.36%
-52.04%
Operating Income
-11.36M
7.19%
-44.08%
Net Income
-9.52M
22.13%
-49.95%
EPS
-0.35
79.53%
18.60%
Key Financial Ratios
currentRatio
23.54
grossProfitMargin
100%
operatingProfitMargin
-5757%
netProfitMargin
-4826%
returnOnAssets
-7.7%
returnOnEquity
-8.33%
debtEquityRatio
0.02
operatingCashFlowPerShare
$-0.27
freeCashFlowPerShare
$-0.27
priceToBookRatio
1.28
priceEarningsRatio
-3.83
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Commentary
#### Strategic Growth
- Shawn Singh, CEO: "...with the positive results from our PALISADE-2 study, we aim to close the treatment gap for millions of individuals affected by SAD, supported by the FDA’s Fast Track designation..."
### Operational Focus
- Cindy Anderson, CFO: "Research and development expenses decreased to $20 million, a reflection of our strategic focus on advancing clinical trials efficiently."
### Future Opportunities
- Shawn Singh on PALISADE-3: "We're systematically executing our registration-directed program, projected top-line data could be available by mid-2025."
Shawn Singh: "We are also exploring the therapeutic potential of itruvone, a differentiated therapy that can expedite relief for patients suffering from major depressive disorder......."
— Shawn Singh
Cindy Anderson: "The decrease in R&D expenses was primarily due to a decrease in clinical and development expenses related to the timing of expenses incurred in our Phase 3 trials..."},
— Cindy Anderson
Forward Guidance
Management has expressed confidence in future operational efficiency, particularly with PALISADE-3 trial data expected mid-2025. The successful completion of ongoing trials could lead to an NDA submission for fasedienol in early 2026. Investors should monitor enrollment rates in PALISADE-3 for insights into market acceptance and trial viability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
VTGN Focus
1.00%
-57.57%
-8.33%
-3.83%
SYBX
54.10%
-3.84%
-34.10%
-56.40%
EFTR
81.50%
-53.07%
1.58%
-85.50%
GRTX
-1.44%
-58.82%
4.26%
-35.40%
ACIU
1.06%
-23.90%
-2.95%
-19.22%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
VistaGen's future appears contingent on the successful advancement of its clinical pipeline. While current financial metrics reflect considerable challenges, upcoming trial milestones present substantial opportunity. Investors should consider the company's strong liquidity against the backdrop of an innovative approach to CNS therapeutics that holds promise for addressing significant unmet medical needs.
Key Investment Factors
Growth Potential
VistaGen's pipeline focuses on unmet needs in CNS disorders, especially with fasedienol targeting SAD, a market affecting over 30 million adults in the U.S. Successful trials could unlock significant revenue streams and strategically position VistaGen as a market leader in CNS therapeutics.
Profitability Risk
Risks include the reliance on a single product for future revenue, potential delays in trial results, and the company’s ability to manage cash burn rates amid lengthy clinical trials without generating corresponding revenues.
Financial Position
The company maintains a robust cash position of $119 million, providing ample runway for ongoing research activities. Strong current ratios indicate sound liquidity; however, continuous net losses could impact investor confidence.
SWOT Analysis
Strengths
Strong cash position supporting R&D activities and sustainable financial runway