TRACON Pharmaceuticals, Inc. (TCON) | Investment Case

1. Company Snapshot

1.a. Company Description

TRACON Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for cancer in the United States.Its clinical stage products include envafolimab (KN035), a PD-L1 single-domain antibody for the treatment of soft tissue sarcoma; and YH001, an investigational humanized CTLA-4 IgG1 monoclonal antibody for the treatment of various cancer indications.The company's clinical stage products also include TRC102, a small molecule that is in Phase II clinical trial for the treatment of mesothelioma, and in Phase I clinical trial to treat solid tumors and lymphomas, lung cancer, and glioblastoma; and TJ004309, a CD73 antibody that is in Phase I clinical development for the treatment of solid tumors.

It has collaboration and license agreements with 3D Medicines Co., Ltd.and Jiangsu Alphamab Biopharmaceuticals Co., Ltd.for the development of envafolimab; I-Mab Biopharma for the development of CD73 antibody TJ004309; Case Western Reserve University for the development of TRC102; and cooperative research and development agreement with National Cancer Institute.

The company was formerly known as Lexington Pharmaceuticals, Inc.and changed its name to TRACON Pharmaceuticals, Inc.in March 2005.

TRACON Pharmaceuticals, Inc.was incorporated in 2004 and is headquartered in San Diego, California.

Show Full description

1.b. Last Insights on TCON

TRACON Pharmaceuticals' recent performance was negatively driven by the company's decision to wind down its operations, effective immediately. This drastic measure was taken after a special meeting of the board of directors, indicating a significant shift in the company's strategy. The termination of employees and cessation of operations will likely have a profound impact on the company's financials and overall performance.

1.c. Company Highlights

Last Price	0.03
Change Percentage	0.00%
Open	0.04
Previous Close	0.03
Market Cap ( Millions)	0
Volume	15047
Year High	0.75
Year Low	0.0
M A 50	0.03
M A 200	0.04

FCF Yield	3350.19%
Dividend Yield	0.00%
ROE	90.15%
Debt / Equity	-119.65%
Net Debt / EBIDTA	110.34%
Price To Book	-0.06
Price Earnings Ratio	-0.01
Price To FCF	0.03
Price To sales	0.01
EV / EBITDA	1.09

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

TRACON Pharmaceuticals Announces it Will Wind Down Operations

Jul -30

Source: globenewswire.com

TRACON Announces Publication in Clinical Cancer Research of Phase 2 Clinical Data for TRC102, a DNA Damage Repair Inhibitor, in Recurrent Glioblastoma Patients

Jun -11

Source: globenewswire.com

TRACON Pharmaceuticals, Inc. (TCON) Q1 2024 Earnings Call Transcript

May -15

Source: Seeking Alpha

TRACON Pharmaceuticals Reports First Quarter 2024 Financial Results and Provides Corporate Update

May -14

Source: globenewswire.com

TRACON to Report First Quarter 2024 Financial Results and Provide Corporate Update on May 14, 2024

May -07

Source: globenewswire.com

Wall Street Favorites: 3 Penny Stocks With Strong Buy Ratings for April 2024

Apr -10

Source: InvestorPlace

TRACON Pharmaceuticals Announces Reverse Stock Split

Apr -08

Source: globenewswire.com

TRACON Pharmaceuticals, Inc. (TCON) Q4 2023 Earnings Call Transcript

Mar -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.55%)

6. Segments

Therapeutics

Expected Growth: 10.55%

TRACON Pharmaceuticals' 10.55% growth in Therapeutics is driven by increasing demand for novel cancer treatments, strategic partnerships, and a strong pipeline of candidates in Phase 2 and Phase 3 clinical trials. Additionally, the company's focus on developing targeted therapies for rare diseases and its expanding presence in the immunotherapy market contribute to its growth momentum.

7. Detailed Products

Envafolimab

Envafolimab is a novel, first-in-class, subcutaneously administered PD-L1 single-domain antibody fragment that is being developed for the treatment of cancer.

TJ004309

TJ004309 is a novel, first-in-class, subcutaneously administered CD73 antibody that is being developed for the treatment of cancer.

TJ003234

TJ003234 is a novel, first-in-class, subcutaneously administered LAG-3 antibody that is being developed for the treatment of cancer.

TJ004801

TJ004801 is a novel, first-in-class, subcutaneously administered GITR antibody that is being developed for the treatment of cancer.

8. TRACON Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

TRACON Pharmaceuticals, Inc. operates in a highly competitive industry, and there are many substitutes available for its products. However, the company's focus on developing novel oncology treatments and its strong research and development capabilities help to mitigate the threat of substitutes.

Bargaining Power Of Customers

TRACON Pharmaceuticals, Inc. has a diverse customer base, and no single customer accounts for a significant portion of its revenue. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

TRACON Pharmaceuticals, Inc. relies on a few key suppliers for raw materials and services. While the company has some bargaining power due to its size and reputation, suppliers still have some leverage.

Threat Of New Entrants

The biotechnology industry is highly competitive, and new entrants can easily disrupt the market. TRACON Pharmaceuticals, Inc. needs to continuously innovate and invest in research and development to stay ahead of new entrants.

Intensity Of Rivalry

The biotechnology industry is highly competitive, and TRACON Pharmaceuticals, Inc. faces intense rivalry from established players and new entrants. The company needs to focus on differentiating its products and services to gain a competitive edge.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	608.81%
Debt Cost	10.26%
Equity Weight	-508.81%
Equity Cost	10.26%
WACC	10.26%
Leverage	-119.65%

11. Quality Control: TRACON Pharmaceuticals, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Revance Therapeutics

A-Score: 4.2/10

Value: 9.0

Growth: 6.1

Quality: 6.2

Yield: 0.0

Momentum: 1.0

Volatility: 2.7

1-Year Total Return ->

TRACON Pharmaceuticals

A-Score: 3.7/10

Value: 9.6

Growth: 6.9

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

1-Year Total Return ->

Arvinas

A-Score: 3.5/10

Value: 8.4

Growth: 4.4

Quality: 5.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

Vericel

A-Score: 3.4/10

Value: 1.0

Growth: 7.9

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

C4 Therapeutics

A-Score: 2.8/10

Value: 7.8

Growth: 2.4

Quality: 4.7

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Matinas BioPharma

A-Score: 2.8/10

Value: 7.8

Growth: 4.2

Quality: 3.2

Yield: 0.0

Momentum: 1.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-14.75%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.26%

TRACON Pharmaceuticals, Inc. - US89237H2094

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TCON

1.c. Company Highlights

Cheaper

Better Quality

Weak Momentum

Earnings Miss

More Volatile

Earnings Beats

Medium Volatility

Higher Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.55%)

6. Segments

Therapeutics

Expected Growth: 10.55%

7. Detailed Products

Envafolimab

TJ004309

TJ003234

TJ004801

8. TRACON Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: TRACON Pharmaceuticals, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.03$

Current Price

0.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA