Stock of the Day

May 26, 2025

Septerna (SEPN)

$10.04
-$0.48 (-4.6%)
Market Cap: $446.92M

About Septerna

We are a clinical-stage biotechnology company pioneering a new era of G protein-coupled receptor (GPCR) oral small molecule drug discovery powered by our proprietary Native Complex Platform™. Our industrial-scale platform aims to unlock the full potential of GPCR therapies and has led to the discovery and development of our deep pipeline of product candidates focused initially on treating patients in three therapeutic areas: endocrinology, immunology and inflammation, and metabolic diseases. GPCRs are the largest and most diverse family of cell membrane receptors and regulate physiological processes in nearly every organ system of the human body. Due to their significant role in human diseases, GPCRs have been the most productive target class in drug discovery history, accounting for approximately one-third of all U.S. Food and Drug Administration (FDA) approved drugs, representing approximately 500 products with combined global revenue of approximately $125 billion in 2023. Despite the pharmacological and commercial success of GPCR-targeted agents, about 75% of potential GPCR therapeutic targets remain undrugged and, for certain validated GPCRs, novel binding pockets may exist that could offer enhanced therapeutic benefits. Each step in GPCR activation involves subtle conformational changes that have been historically challenging to reproduce outside of a cell. The inability to isolate GPCR proteins in their native functional form outside of a cellular context has prevented scientists from leveraging some of the state-of-the-art technologies that have revolutionized drug discovery in other major target classes over the past decade. This complex challenge has limited GPCR drug discovery, particularly the development of novel oral small molecules, such as agonists (which activate GPCR signaling) for peptide GPCRs and allosteric modulators (which either increase or decrease the degree of GPCR activation by endogenous ligands). Our proprietary Native Complex Platform™ replicates the natural structure, function, and dynamics of GPCRs outside of cells at an industrial scale for, as we believe it, the first time. Our foundational technologies enable us to isolate, purify, and reconstitute full-length, properly folded GPCR proteins within ternary complexes with ligands and transducer proteins in a lipid bilayer that mimics the cell membrane. We then apply state-of-the-art discovery tools and technologies to these defined and tunable protein complexes to structurally design, screen for, and optimize potential product candidates. Leveraging our platform, we conduct GPCR oral small molecule drug discovery using an industrialized and iterative structure-based drug design approach for a diverse collection of GPCR targets. Our Native Complex PlatformTM is designed to enable us to target specific GPCRs, uncover novel binding pockets for validated receptors, and pursue a wide spectrum of pharmacologies, including agonists, antagonists (which inhibit GPCR signaling), and allosteric modulators, to affect GPCR signaling in different ways to achieve desired therapeutic effects. We are advancing a deep portfolio of oral small molecule GPCR-targeted programs with novel mechanistic approaches to treat diseases across multiple therapeutic areas for patients with significant unmet needs. Our wholly-owned pipeline, is focused initially on three therapeutic areas: endocrinology, immunology and inflammation, and metabolic diseases. We intend to evaluate opportunities in other major therapeutic areas, such as neurology, women's health, cardiovascular, and respiratory disease. --- Leveraging our team, scientific and technical advisors, and our proprietary Native Complex Platform™, we aim to be a leader in the development of oral GPCR-targeted medicines for patients with significant unmet needs. We were incorporated under the laws of the State of Delaware in December 2019 under the name GPCR NewCo, Inc. and changed our name to Septerna, Inc. in June 2021. Our principal executive offices are located at 250 East Grand Avenue, South San Francisco, California.

Septerna Bull Case

Here are some ways that investors could benefit from investing in Septerna, Inc.:

  • Recent insider buying activity, including a significant purchase by Director Alan Ezekowitz, indicates confidence in the company's future performance. This can be a positive signal for potential investors.
  • Septerna, Inc. reported earnings that exceeded analysts' expectations, with an EPS of ($0.64) compared to the consensus estimate of ($0.69). This suggests that the company is performing better than anticipated.
  • The company has a promising pipeline focused on G protein-coupled receptor therapies, which are critical in treating various diseases, including those in endocrinology and immunology. This positions Septerna, Inc. well in the biotechnology sector.
  • As of the latest trading session, the stock price is $9.19, which is significantly higher than its one-year low of $4.17, indicating a potential recovery and growth opportunity for investors.
  • Institutional investment interest has increased, with Soleus Capital Management L.P. acquiring 675,409 shares, reflecting growing confidence from larger investors in Septerna's potential.

Septerna Bear Case

Investors should be bearish about investing in Septerna, Inc. for these reasons:

  • The company has reported a negative EPS for the current fiscal year, with analysts expecting an EPS of -7.11, indicating ongoing financial challenges.
  • Despite recent positive earnings, the company missed analysts' expectations in its latest quarter, reporting an EPS of ($0.49) against a consensus of ($0.38), which may raise concerns about its ability to meet future targets.
  • Septerna's stock has experienced volatility, with a significant drop of 3.1% in a recent trading session, which could deter risk-averse investors.
  • The biotechnology sector can be highly unpredictable, and Septerna, Inc. is still in the clinical stage, meaning it faces risks related to product development and regulatory approvals.
  • With a 50-day moving average of $6.73 and a 200-day moving average of $13.82, the stock's current price is below both averages, suggesting a bearish trend that may concern potential investors.

Analysts Think These Stocks Could More Than Double in Value

Written By Nathan Reiff on 5/23/2025

Stock chart graphic

Persistent volatility has plagued the S&P 500 for much of 2025, prompting widespread caution among many investors amid the uncertainties of trade battles, tariffs, domestic policy, and more. Investors might remember that many of the biggest rallies take place during these volatile periods, and there may be potential to win big gains for those with at least a moderate tolerance for risk.

Healthcare firms are already known for being volatile, with smaller companies in particular experiencing significant spikes and dips alongside news of successes or failures in the clinical drug development space. Three companies stand out as we reach the midpoint of 2025 for their massive growth potential.

Analysts believe each of the stocks below has the potential to at least double in price, although the three firms also carry varying levels of risk.

Major Partnership With Novo Nordisk Could Boost Septerna

Septerna Inc. (NASDAQ: SEPN) is a clinical-stage biotechnology firm developing G protein-coupled receptor (GPCR) oral small molecule drug candidates for applications in the areas of endocrinology, immunology and inflammation, and metabolic diseases. The firm recently secured a major partnership with Novo Nordisk A/S (NYSE: NVO) to develop novel drug treatments for obesity and type 2 diabetes as competition for the larger firm's weight-loss injection drug Wegovy mounts.

Septerna is set to receive around $200 million in near-term payments on a deal that may eventually be worth more than $2 billion.

Novo Nordisk likely sought out Septerna for its work in GPCRs and drug development platform, both of which distinguish the smaller company from its rivals. The $200 million payment, though not notably large compared to similar partnerships across the industry, is nonetheless a boon for Septerna's cash position and should allow the company substantial flexibility in its research and development operations.

Three out of four analysts have rated Septerna stock a Buy. Given that shares of the company have fallen by about 58% year-to-date (YTD), the consensus price target of $27 per share is roughly triple the current price point.

Promising Trial Data and Ongoing Studies Fuel Optimism in Intellia

Genome editing firm Intellia Therapeutics Inc. (NASDAQ: NTLA) develops in vivo programs and other therapies aiming to address hemophilia, autoimmune diseases, and cancers, among others. In mid-May 2025, the company reported positive two-year follow-up data for its ongoing Phase 1 trial of nex-z for the treatment of a rare organ and nerve disorder, ATTRv-PN.

The company is also engaging in multiple other trials for potential treatments for hereditary angioedema and ATTR with cardiomyopathy.

Though Intellia's cash position fell from the end of 2024 to the close of the first quarter this year, it retained an impressive $707 million in cash holdings as of March 31. This is likely sufficient to fund operations through early 2027. While net losses increased modestly year-over-year (YOY), net losses per share actually narrowed over the same period.

Fourteen out of 21 analysts provided a Buy rating for Intellia shares, the most recent of which was reiterated in May by HC Wainwright and Chardan Capital. However, there is a mixture of opinions among analysts, with Guggenheim and Citigroup recently maintaining ratings while lowering price targets.

Still, the consensus price target for NTLA shares is $36.90, roughly quadrupling the stock's current price.

Novavax's FDA Approval Sends Mixed Messages

Novavax Inc. (NASDAQ: NVAX) may be the highest-risk play of these three firms due to uncertainty surrounding the FDA and COVID-19 vaccines. On one hand, the FDA's recent full approval of Novavax's protein-based COVID-19 vaccine is a major benefit for the firm. It unlocks a $175 million milestone payment from Sanofi SA (NASDAQ: SNY) and positions Novavax as the sole provider of a non-mRNA option currently available.

On the other hand, the FDA also issued significant restrictions that question the vaccine's ability to be widely available.

Shares of NVAX spiked by almost a quarter on the news but gave up most of those gains within three days. The stock remains down overall by about 16% YTD. Still, four out of seven analysts believe NVAX shares are a Buy, and the consensus price target of $19 per share could represent 167% upside potential.