AVEO Pharmaceuticals, Inc.

NasdaqCM:AVEO Stock Report

Market Cap: US$521.4m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

AVEO Pharmaceuticals Balance Sheet Health

Financial Health criteria checks 6/6

Key information

134.09%

Debt to equity ratio

US$38.68m

Debt

Interest coverage ration/a
CashUS$77.40m
EquityUS$28.85m
Total liabilitiesUS$72.39m
Total assetsUS$101.23m

Recent financial health updates

Analysis Article • Oct 04

Here's Why AVEO Pharmaceuticals (NASDAQ:AVEO) Can Manage Its Debt Despite Losing Money

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
Analysis Article • Jun 21

Rock star Growth Puts AVEO Pharmaceuticals (NASDAQ:AVEO) In A Position To Use Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Mar 03

AVEO Pharmaceuticals (NASDAQ:AVEO) May Not Be Profitable But It Seems To Be Managing Its Debt Just Fine, Anyway

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Nov 23

AVEO Pharmaceuticals (NASDAQ:AVEO) May Not Be Profitable But It Seems To Be Managing Its Debt Just Fine, Anyway

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Recent updates

Seeking Alpha • Oct 18

AVEO Oncology shares jumped on acqusition by LG Chem for $15.00 per share in cash

LG Chem (OTCPK:LGCLF) will acquire AVEO for $15.00 per share in an all-cash transaction with an implied equity value of $566M on a fully diluted basis. AVEO shares jumped 38% premarket in response to the news as the transaction price represents a 43% premium to closing share price on October 17, 2022, as well as a 71% premium to its 30 trading day volume-weighted average price. Upon completion of the transaction, AVEO will operate as the U.S. commercial foundation for LG Chem Life Sciences’ oncology segment and will immediately establish LG Chem’s commercial presence in oncology through AVEO’s lead product, FOTIVDA (tivozanib), which received FDA approval in March 2021 for the treatment of adult patients with relapsed or refractory advanced renal cell carcinoma (RCC) following two or more prior systemic therapies. The transaction is expected to close in early 2023. LG Chem expects to finance the transaction with existing and available cash resources. AVEO expects to report Q3 results on Monday, November 7, 2022 but will not conduct an earnings conference call or provide financial guidance.
Analysis Article • Oct 04

Here's Why AVEO Pharmaceuticals (NASDAQ:AVEO) Can Manage Its Debt Despite Losing Money

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
Seeking Alpha • Aug 15

A Current Assessment On AVEO Pharmaceuticals

Today, we put small oncology name AVEO Pharmaceuticals in the spotlight for the first time in three and a half years. The company is seeing good sales growth from its franchise drug that was approved in 2021 and is marching toward profitability as a company. An investment analysis follows in the paragraphs below. The income tax created more criminals than any other single act of government." - Barry Goldwater The last time I wrote about AVEO Pharmaceuticals, Inc. (AVEO) was after it was "sideswiped" by an FDA decision in early 2019. That article counseled patience, which was good advice in hindsight as the company eventually cleared that FDA hurdle. FOTIVDA, also known as Tivozanib, finally was approved approximately a year and a half ago for treating relapsed or refractory advanced renal cell carcinoma (R/R RCC) in a third-line setting. Company Website FOTIVDA is an oral, once-daily, vascular endothelial growth factor receptor tyrosine kinase inhibitor. The drug should deliver just north of $100 million in sales this fiscal year. Therefore, it seems a good time to peak back in on this small but fast-growing oncology concern. An analysis follows below. Seeking Alpha Company Overview: AVEO Pharmaceuticals is located in Boston. The company is focused on developing and commercializing medicines for oncology. The stock currently trades at around eight bucks a share and sports an approximate market capitalization of $275 million. The company is currently enrolling patients in a Phase 3 'TiNivo-2' clinical trial evaluating tivozanib in combination with Bristol-Myers Squibb's (BMY) antibody nivolumab or OPDIVO. The study is targeting PD-1 and results will be compared to tivozanib monotherapy in patients with R/R RCC who have progressed following prior immune checkpoint inhibitor therapy. If the data is favorable, this could result in FDA approval of tivozanib in combination with OPDIVO in R/R RCC and expand the market opportunity for FOTIVDA into the larger second-line R/R RCC setting. The company is also developing Ficlatuzumab. This is a potent hepatocyte growth factor ((HGF)) immunoglobulin G1 (IgG1) inhibitory antibody that binds to the HGF ligand with high affinity and specificity. AVEO Pharmaceuticals has conducted a Phase 2 trial of ficlatuzumab as a single agent or in combination with cetuximab (ERBITUX®) in patients who relapsed or were refractory to prior immunotherapy, chemotherapy, and cetuximab (pan-refractory) with metastatic head and neck squamous cell carcinoma or HNSCC. The company has stated it expects to make a go/no-go decision on the initiation of a pivotal Phase 3 study of ficlatuzumab in HPV negative HNSCC following feedback from the FDA. The compound does have Fast Track designation for this indication, and management continues to seek a strategic partner to fund development expenses. Company Website The rest of AVEO's pipeline consists of earlier staged compounds and not germane to this analysis. First Quarter Results: On August 4th, the company posted second quarter numbers. AVEO Pharmaceuticals had a GAAP loss of 24 cents a share in the quarter, beating the consensus by four cents a share. Revenues were up just over 230% on a year-over-year basis to $25.3 million, roughly in line with the consensus. Net FOTIVDA sales came in at $25 million, up 271% from the same period a year ago and some 24% above that of 1Q2022. Leadership reaffirmed its full year 2022 FOTIVDA U.S. net product revenue guidance of $100 million to $110 million Analyst Commentary & Balance Sheet: Since first quarter results were posted, four analyst firms including Robert W. Baird and Stifel Nicolaus have reissued Buy ratings on AVEO Pharmaceuticals. Price targets proffered range from $12 to $17 a share. Here is the note from the analyst from SVB Securities who reiterated his Buy rating and $15 price target on August 4th.
Analysis Article • Jun 21

Rock star Growth Puts AVEO Pharmaceuticals (NASDAQ:AVEO) In A Position To Use Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Seeking Alpha • May 24

AVEO Pharmaceuticals Is Primed For A Breakout

AVEO is a mostly forgotten name that is seeing very good growth in their lead product FOTIVDA. Their share price has run lower from exuberant highs reached almost 5 years ago, even as their fundamentals and future seem to be getting more solid. AVEO seems like a mostly forgotten about name that I think is poised for a big breakout higher over the next couple of years.
Analysis Article • Mar 17

Here's What Analysts Are Forecasting For AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) After Its Annual Results

The investors in AVEO Pharmaceuticals, Inc. 's ( NASDAQ:AVEO ) will be rubbing their hands together with glee today...
Seeking Alpha • Mar 09

AVEO Pharmaceuticals: Finally Ready To Reboot

It appears as if AVEO Oncology is off to a strong start. The company is expected to report their fourth-quarter and full-year 2021 earnings on March 14th. I have stayed cautiously optimistic about AVEO’s performance in anticipation the Street will continue to be skeptical about FOTIVDA’s launch. I believe the prolonged sell-off has improved the risk-reward. My plan of remaining patient and waiting for a couple of quarters of earnings and clarity on COVID-19 appears to have saved me some pain. AVEO is now trading well below my current “buy” threshold of $4.36 per share. As a result, I am ready to reboot my AVEO position at these valuations. I will discuss how I plan to take my AVEO position out of mothball and quickly get her into the green. I am looking to buy under $3.50 per share.
Analysis Article • Mar 03

AVEO Pharmaceuticals (NASDAQ:AVEO) May Not Be Profitable But It Seems To Be Managing Its Debt Just Fine, Anyway

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Nov 23

AVEO Pharmaceuticals (NASDAQ:AVEO) May Not Be Profitable But It Seems To Be Managing Its Debt Just Fine, Anyway

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Seeking Alpha • Oct 29

AVEO Pharmaceuticals: Sticking To The Plan

AVEO Pharmaceuticals believes that they are off to a strong start. It looks as if the first full quarter of FOTIVDA sales show there was some demand at launch. I am remaining cautiously optimistic about FOTIVDA’s launch and expect the Street to be skeptical about Aveo's commercial prospects in the coming quarters. I will discuss why I remain patient and wait for a couple more quarters of earnings and wait for the COVID headwinds to subside before getting overly bullish again. I attempt to reveal my current “buy” threshold.
Seeking Alpha • Jul 24

AVEO Pharmaceuticals: Making Its Mark In Cancer Treatment

AVEO’s lead drug candidate, Tivozanib, recently got U.S. FDA approval for treatment of Renal Cell Carcinoma. It clocked in revenue of $1.1 Million within just nine days of getting approved. Besides Tivozanib, AVEO is working on four other major drug candidates that will help in the treatment of head and neck cancer (HNSCC), cachexia, breast, pancreatic, and lung cancers. AVEO has a comprehensive portfolio of intellectual property and multiple tiers of patents that protects all of its drug candidates. The company has a strong balance sheet with adequate cash to support the research and development of its drug candidates. AVEO trades at a forward P/S ratio of 4, making it relatively undervalued when compared to the U.S. Biotechnology and Drug industry P/S ratio of ~6.5. By performing a high-level relative valuation, I arrived at an intrinsic per share value of $13.1, indicating an upside of 130% over the current share price.

Financial Position Analysis

Short Term Liabilities: AVEO's short term assets ($100.7M) exceed its short term liabilities ($42.4M).

Long Term Liabilities: AVEO's short term assets ($100.7M) exceed its long term liabilities ($30.0M).

Debt to Equity History and Analysis

Debt Level: AVEO has more cash than its total debt.

Reducing Debt: AVEO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AVEO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AVEO has sufficient cash runway for 2.9 years if free cash flow continues to reduce at historical rates of 12.7% each year.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/01/21 01:10
End of Day Share Price 2023/01/19 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

AVEO Pharmaceuticals, Inc. is covered by 15 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Madhu KumarBaird
James BirchenoughBMO Capital Markets Equity Research
Madhu KumarB. Riley Securities, Inc.