One-glance verdict
Within fair range
$4.58 our estimate vs market $4.05
Wall Street consensus: $22.50 (391.7% higher than our fair-value estimate)
11% below our estimate
Fundamentals snapshot
ARS Pharmaceuticals, Inc.
SPRY · NGM · Healthcare · Biotechnology
Current price
$4.05
52-week range
$3.98 - $13.15
Market cap
$402.76M
Balance sheet
Distressed
-69.05x Concerning
Net debt $27.76M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 38.7% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -210.3% last year — the company lost money on shareholders' equity.
What this company does
ARS Pharmaceuticals, Inc.
ARS Pharmaceuticals is a company that creates medicines to help people with severe allergic reactions. Their main product, called neffy, is a nasal spray that delivers a medicine to stop these reactions quickly, without needing a shot. This matters because it provides a new, easier way for people to get life-saving treatment during an emergency.
How the company got here
ARS Pharmaceuticals was founded in 2015 with the goal of creating a better way to treat severe allergic reactions. The company's journey involved developing a novel product, neffy, which is a needle-free nasal spray for delivering epinephrine. A significant turning point was the merger with Silverback Therapeutics in November 2022, which allowed ARS Pharmaceuticals to become a publicly traded company and provided crucial resources for the potential launch and commercialization of neffy. This merger was accounted for as a reverse recapitalization, with ARS Pharmaceuticals treated as the acquirer for accounting purposes. The company has since focused on refining its commercial strategy and managing its expenses to achieve profitability.
What it actually does
ARS Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing treatments for severe allergic reactions, particularly anaphylaxis. Anaphylaxis is a sudden, severe, and potentially life-threatening allergic reaction that can occur within minutes of exposure to an allergen. The company's main product is neffy, which is an epinephrine nasal spray. Epinephrine is the primary medication used to reverse the symptoms of anaphylaxis. Unlike traditional epinephrine auto-injectors that require an injection, neffy offers a needle-free alternative delivered via a nasal spray.
neffy (epinephrine nasal spray)
The core of ARS Pharmaceuticals' business is its product, neffy, an epinephrine nasal spray. This product is designed for the emergency treatment of Type I allergic reactions, including anaphylaxis, in adults and children weighing 33 pounds or more. The key innovation of neffy is its needle-free delivery system, addressing a significant unmet need for patients who are hesitant or unable to use traditional epinephrine injections. The company has focused on making neffy accessible through various programs, including co-pay savings and virtual prescribing options, to ensure patients can obtain and use this life-saving medication.
What management is betting on now
ARS Pharmaceuticals' current strategy revolves around three main priorities: targeted commercial execution, financial discipline, and pipeline expansion. The company is shifting its commercial focus from broad consumer marketing to engaging directly with healthcare providers, especially high-volume prescribers, believing this will be more effective in driving market share for neffy. Simultaneously, management is implementing rigorous cost controls to reduce expenses and achieve cash flow breakeven by the end of 2027. The company is also investing in pipeline expansion, exploring the use of its intranasal epinephrine technology for other conditions, such as chronic spontaneous urticaria (CSU), which represents a potential new market opportunity.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-14.61M
FY2024 Q4
$41.70M
FY2025 Q1
$-40.83M
FY2025 Q2
$-39.64M
FY2025 Q3
$-47.24M
FY2025 Q4
$-43.48M
FY2026 Q1
$-44.95M
FY2026 Q2
$-60.93M
Revenue
$33.66M
Net income
$-62.34M
Diluted EPS
-0.63
Operating cash flow
$-60.93M
Free cash flow
$-60.93M
Fetching…
Sources
Revenue
$22.68M
Net income
$-60.62M
Diluted EPS
-0.61
Operating cash flow
$-44.95M
Free cash flow
$-44.95M
Fetching…
Sources
Revenue
$28.09M
Net income
$-41.32M
Diluted EPS
-0.41
Operating cash flow
$-43.48M
Free cash flow
$-43.48M
Fetching…
Sources
Revenue
$32.50M
Net income
$-51.15M
Diluted EPS
-0.52
Operating cash flow
$-47.05M
Free cash flow
$-47.24M
Fetching…
Sources
Revenue
$15.72M
Net income
$-44.88M
Diluted EPS
-0.46
Operating cash flow
$-39.59M
Free cash flow
$-39.64M
Fetching…
Sources
Revenue
$7.97M
Net income
$-33.94M
Diluted EPS
-0.35
Operating cash flow
$-40.74M
Free cash flow
$-40.83M
Fetching…
Sources
Revenue
$86.58M
Net income
$49.93M
Diluted EPS
0.52
Operating cash flow
$42.00M
Free cash flow
$41.70M
Fetching…
Sources
Revenue
$2.07M
Net income
$-19.13M
Diluted EPS
-0.20
Operating cash flow
$-14.47M
Free cash flow
$-14.61M
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.58 vs current price $4.05
Wall Street consensus is the average analyst price target: $22.50 (391.7% higher than our fair-value estimate).
Our most-likely fair value is $4.58 a share — about 13.0% away from today's price of $4.05, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $27.8M. Interest coverage -69.0x.
Net debt
$27.76M
Interest coverage
-69.05x
ARS Pharmaceuticals, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Distressed
Worse cushion
Baseline
Better cushion
SPRY
BASELINE
ARS Pharmaceuticals, Inc.
Total debt $171.60M Interest coverage -69.05x This is the baseline the peer rows are being compared against.
What you should know
The case for and against SPRY
2 Rewards
1 Risk
Rewards
-
Revenue grew 38.7% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -210.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-4.52x
P/B
32.14x
P/S
3.44x
EV/EBITDA
-2.01x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
58.3%
Operating margin
-182.6%
Net margin
-184.2%
ROE
-210.3%
ROA
-48.0%
Health
Liquidity and balance-sheet strength
Debt / equity
13.72x
Current ratio
3.48x
Quick ratio
3.15x
Total debt
$171.60M
Total cash
$143.84M
Growth
How the business has been compounding
Revenue TTM
$116.93M
Revenue 5Y CAGR
300.1%
EPS TTM
-2.18
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-196.41M
Free CF TTM
$-171.21M
FCF margin
-146.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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