One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Upstream Bio, Inc.
UPB · NMS · Healthcare · Biotechnology
Current price
$3.41
52-week range
$2.68 - $33.68
Market cap
$186.77M
Balance sheet
Healthy
-9.47x Concerning
Net cash $260.35M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 10.7% last year.
- Risk Operating margin compressed from -1972.7% to -5481.0% over 3 years.
- Risk Return on equity was -46.1% last year — the company lost money on shareholders' equity.
What this company does
Upstream Bio, Inc.
Upstream Bio, Inc. is developing new medicines to help people with serious breathing problems like severe asthma. Their main product, verekitug, is still being tested in human trials, meaning it's not yet approved for sale. This is important because if the drug is successful in trials, the company could eventually make money selling it, but right now, they aren't generating any sales revenue.
How the company got here
Upstream Bio, Inc. was founded in 2021 with a clear mission: to develop new treatments for inflammatory diseases, particularly those affecting the respiratory system. The company's strategy has been to focus on a single lead drug candidate, verekitug, and its potential to target a specific pathway involved in inflammation. This focused approach has allowed them to advance rapidly through early clinical trials. In 2024, Upstream Bio became a publicly traded company, listing on the Nasdaq stock exchange, which provided capital to fund their ongoing research and development efforts. Their journey so far has been about building a company around a promising scientific hypothesis and a single therapeutic candidate, rather than developing a broad portfolio of drugs.
What it actually does
Upstream Bio is a biotechnology company that develops medicines. Specifically, they are working on a drug called verekitug, which is designed to treat severe inflammatory respiratory diseases. Think of it like developing a highly specialized tool to fix a specific problem in the body's defense system that's gone haywire. Their focus is on conditions where the body's immune response causes significant harm, leading to diseases like severe asthma and others. The company is currently in the clinical trial phase, meaning they are testing verekitug in people to see if it's safe and effective.
Verekitug for Respiratory Diseases
Upstream Bio's main focus is on developing verekitug, a type of medicine called a monoclonal antibody. Verekitug is designed to target a specific molecule in the body called the TSLP receptor. TSLP (thymic stromal lymphopoietin) is a signaling molecule that plays a key role in triggering inflammation, especially in respiratory conditions. By blocking the TSLP receptor, verekitug aims to reduce this inflammation. The company is investigating verekitug for several severe respiratory conditions, including severe asthma, chronic rhinosinusitis with nasal polyps (CRSwNP), and chronic obstructive pulmonary disease (COPD). These are all conditions where inflammation plays a significant role in the disease's severity and progression.
What management is betting on now
Upstream Bio's management is heavily focused on successfully advancing verekitug through late-stage clinical trials, specifically Phase 3 trials for severe asthma and CRSwNP, with plans to initiate these in early 2027. The company is betting that verekitug's unique mechanism of action, which targets TSLP, will prove to be highly effective and potentially offer advantages like less frequent dosing compared to existing treatments. Success in these trials is crucial, as it could lead to regulatory submissions and potential approval, with a possible market launch as early as 2030. Their strategy hinges on demonstrating verekitug's ability to provide best-in-class efficacy for patients with significant unmet medical needs in these respiratory diseases.
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
$-14.29M
FY2024 Q4
$-19.80M
FY2025 Q2
$-39.29M
FY2025 Q3
$-22.30M
FY2025 Q4
$-30.68M
FY2026 Q2
$-35.62M
Revenue
$773.00K
Net income
$-39.70M
Diluted EPS
-0.73
Operating cash flow
$-35.62M
Free cash flow
$-35.62M
Fetching…
Sources
Revenue
$1.03M
Net income
$-40.59M
Diluted EPS
-0.75
Operating cash flow
$-47.85M
Free cash flow
—
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Sources
Revenue
$668.00K
Net income
$-42.46M
Diluted EPS
-0.78
Operating cash flow
$-30.63M
Free cash flow
$-30.68M
Fetching…
Sources
Revenue
$683.00K
Net income
$-33.75M
Diluted EPS
-0.63
Operating cash flow
$-22.24M
Free cash flow
$-22.30M
Fetching…
Sources
Revenue
$937.00K
Net income
$-39.97M
Diluted EPS
-0.74
Operating cash flow
$-39.24M
Free cash flow
$-39.29M
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Sources
Revenue
$566.00K
Net income
$-27.27M
Diluted EPS
-0.51
Operating cash flow
$-41.16M
Free cash flow
—
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Sources
Revenue
$613.00K
Net income
$-21.24M
Diluted EPS
12.56
Operating cash flow
$-19.61M
Free cash flow
$-19.80M
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Sources
Revenue
$607.00K
Net income
$-15.99M
Diluted EPS
-6.96
Operating cash flow
$-13.96M
Free cash flow
$-14.29M
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Sources
Is it cheap or expensive?
Fair value — vs current price $3.41
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $260.4M - more cash than debt. Interest coverage -9.5x.
Net debt
$-260.35M
Interest coverage
-9.47x
Upstream Bio, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
UPB
BASELINE
Upstream Bio, Inc.
Total debt $954.00K Interest coverage -9.47x This is the baseline the peer rows are being compared against.
Total debt $396.87M Interest coverage 3.63x This peer still has a real interest-payment cushion, while UPB does not.
Total debt $7.50M Interest coverage -244.68x Neither company has much profit cushion over interest right now.
Total debt $1.31M Interest coverage -8.16x Neither company has much profit cushion over interest right now.
Total debt $1.94M Interest coverage -9.72x Neither company has much profit cushion over interest right now.
What you should know
The case for and against UPB
1 Reward
2 Risks
Rewards
-
Revenue grew 10.7% last year.
Risks
-
Operating margin compressed from -1972.7% to -5481.0% over 3 years.
-
Return on equity was -46.1% 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
-1.22x
P/B
0.69x
P/S
59.14x
EV/EBITDA
0.43x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
100.0%
Operating margin
-5,481.0%
Net margin
0.0%
ROE
-46.1%
ROA
-30.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.00x
Current ratio
27.99x
Quick ratio
26.38x
Total debt
$954.00K
Total cash
$261.31M
Growth
How the business has been compounding
Revenue TTM
$3.16M
Revenue 5Y CAGR
20.4%
EPS TTM
-2.88
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-136.34M
Free CF TTM
$-133.44M
FCF margin
-4,225.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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