GICS Sector : Healthcare
Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products for rare diseases.The company offers Biorphen, a phenylephrine injection for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; and Rezipres, a ready-to-use formulation of a molecule that is indicated for the treatment of clinically important hypotension occurring in the setting of anesthesia.It also offers Alkindi Sprinkle, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; EPRONTIA, a liquid formulation of topiramate; and Alaway Preservative Free, a preservative-free ophthalmic product to treat allergic conjunctivitis.
Eton Pharmaceuticals reported a significant increase in product revenue for Q3 2025, with $22.5 million in sales, representing a 129% year-over-year growth and a 19% sequential increase. However, the company's adjusted gross margin was negatively impacted by INCRELEX ex U.S. related costs, resulting in a 38% decline in adjusted gross profit to $6.4 million. The earnings per share (EPS) came in at -$0.07, missing estimates of $0.16.
Publication Date: Nov -18
The revenue growth was primarily driven by strong sales of ALKINDI SPRINKLE, Carglumic Acid, INCRELEX, and GALZIN. ALKINDI SPRINKLE continued its reliable growth trend, while Carglumic Acid saw a year-over-year increase due to new patient adds. INCRELEX revenue and patient count continue to track well ahead of original projections, driven by market education and awareness efforts.
Eton Pharmaceuticals made significant progress on its pipeline products, including ET-700, an extended-release version of GALZIN, and ET-600, an oral solution of desmopressin to treat central diabetes insipidus, which was accepted by the FDA for review with a February 25 PDUFA date. The company expects continued strong revenue growth from its commercial products and attractive pipeline and label expansion opportunities.
With a P/S Ratio of 6.58 and an expected revenue growth rate of 36.7% next year, the company's valuation appears to be partially justified by its growth prospects. However, the negative EPS and high P/B Ratio of 20.07 may indicate overvaluation. The company's guidance for gross margins to reach north of 75% by 2028, driven by a shift in product revenue growth towards higher-margin products, is a positive factor.
Eton Pharmaceuticals generated $12 million in cash from operations in Q3 2025 and finished the quarter with $37.1 million in cash on hand. The company's ability to finance acquisitions and drive growth through business development transactions is supported by its diversified and growing business, which is already generating strong EBITDA.
Eton Pharmaceuticals to Present at Piper Sandler 37th Annual Healthcare Conference on December 4th
Nov -24
Acadian Asset Management LLC Sells 9,713 Shares of Eton Pharmaceuticals, Inc. $ETON
Nov -14
Eton Pharmaceuticals to Participate at 16th Annual Craig-Hallum Alpha Select Conference on November 18th
Nov -12
Eton Pharmaceuticals, Inc. (ETON) Q3 2025 Earnings Call Transcript
Nov -07
Eton Pharmaceuticals, Inc. (ETON) Reports Q3 Loss, Beats Revenue Estimates
Nov -06
Eton Pharmaceuticals Reports Third Quarter 2025 Financial Results
Nov -06
Eton Pharmaceuticals to Report Third Quarter 2025 Financial Results on Thursday, November 6, 2025
Oct -23
Eton Pharmaceuticals to Participate at 2025 Wells Fargo Healthcare Conference
Aug -20
Eton Pharmaceuticals' 8.74% growth in Prescription Drug Products is driven by increasing demand for specialty generics, expanded product offerings, and strategic partnerships. Additionally, the company's focus on rare disease treatments and orphan drugs contributes to growth. Furthermore, investments in R&D and regulatory approvals for new products also support the segment's growth.
Alkindi Sprinkle is a hydrocortisone granule formulation for the treatment of adrenocortical insufficiency in pediatric patients.
Biorphen is a phenylephrine injection used to treat clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia.
Rezipres is a prescription medicine used to treat high blood pressure in adults and children 6 years of age and older.
ET-105 is a novel, oral, once-daily formulation of topiramate for the treatment of epilepsy and other central nervous system disorders.
Eton Pharmaceuticals, Inc. faces moderate threat from substitutes due to the presence of alternative treatments and generic drugs.
Customers have limited bargaining power due to the specialized nature of Eton Pharmaceuticals, Inc.'s products and the lack of alternative suppliers.
Suppliers have moderate bargaining power due to the presence of multiple suppliers and the company's dependence on a few key suppliers.
The threat of new entrants is high due to the growing demand for pharmaceuticals and the relatively low barriers to entry in the industry.
The intensity of rivalry is high due to the presence of several established players in the industry and the high stakes involved in the development of new drugs.
| Value | |
|---|---|
| Debt Weight | 26.06% |
| Debt Cost | 6.79% |
| Equity Weight | 73.94% |
| Equity Cost | 9.88% |
| WACC | 9.07% |
| Leverage | 35.25% |
Value: 7.4
Growth: 8.0
Quality: 7.0
Yield: 0.0
Momentum: 10.0
Volatility: 1.0
1-Year Total Return ->
Value: 2.2
Growth: 7.1
Quality: 4.6
Yield: 0.0
Momentum: 10.0
Volatility: 2.7
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Value: 7.8
Growth: 4.8
Quality: 3.0
Yield: 0.0
Momentum: 6.0
Volatility: 3.0
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Value: 9.6
Growth: 5.4
Quality: 5.2
Yield: 0.0
Momentum: 0.5
Volatility: 2.0
1-Year Total Return ->
Value: 8.8
Growth: 3.4
Quality: 5.2
Yield: 0.0
Momentum: 0.0
Volatility: 0.3
1-Year Total Return ->
Value: 7.0
Growth: 2.9
Quality: 2.9
Yield: 0.0
Momentum: 2.0
Volatility: 0.3
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