Stealth BioTherapeutics Corp

NasdaqGM:MITO Stock Report

Market Cap: US$23.5m

This company has been acquired

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

Stealth BioTherapeutics Future Growth

Future criteria checks 0/6

Key information

3.4%

Earnings growth rate

95.08%

EPS growth rate

Biotechs earnings growth25.1%
Revenue growth raten/a
Future return on equityn/a
Analyst coverage

Low

Last updatedn/a

Recent future growth updates

Recent updates

Seeking Alpha • Sep 30

Stealth Biotherapeutics chief financial officer Robert Weiskopf leaves company

Stealth BioTherapeutics (NASDAQ:MITO) said on Friday Robert Weiskopf, its chief financial officer, is leaving the company effective September 30. Weiskopf joined Stealth in 2019 following the initial public offering.
Seeking Alpha • Aug 01

Stealth BioTherapeutics shares pop ~20% premarket after co agrees to go private

Stealth BioTherapeutics (NASDAQ:MITO) on Monday said it had agreed to go private by being acquired by Morningside Venture (I) Investments, over a month after the clinical-stage biotech received the investment firm's preliminary proposal. MITO stock jumped 19.9% to $0.29 in premarket trading on the announcement. As per the terms of the deal, a consortium of investors led by Morningside for itself and on behalf of its affiliates and J. Wood Capital Advisors LLC will buy MITO for $0.03125 per share and $0.375 per ADS in an all-cash transaction. The per ADS consideration represents a 56.3% premium to Stealth's (MITO) last closing price of $0.24, and a 33.9% premium to the company's closing price of $0.28 on June 24, which was the last trading day before MITO said it had got the preliminary proposal. The Morningside led consortium intends to fund the merger through cash contributions from its members. MITO said its board had approved the deal and that the merger was expected to close during H2 this year.
Seeking Alpha • Jul 26

Stealth BioTherapeutics: A Net-Net Biopharma Going Private

This seems to be an interesting going private setup currently offering a 10% upside. Majority shareholder Morningside is acquiring the remaining 33% stake in a nanocap biopharmaceutical company Stealth BioTherapeutics. The buyer has indicated that it wants to complete the transaction swiftly and without broad due diligence. Offer cancellation risk seems to be low as the company is an advanced-stage biopharma that is currently trading below net cash while the buyer seems reputable and controls the company. On June 24, Morningside Venture Investments (MVIL) issued a non-binding proposal to acquire the remaining outstanding shares of a clinical-stage biopharmaceutical Stealth BioTherapeutics (MITO). MVIL already has a 67% stake in the company. The offer is $0.313 per ADS or $0.263 after deducting ADS cancellation fees. At current prices, this offers a 10% upside (after ADS fees). Majority-of-minority shareholder approval will not be needed while the committee of independent directors is likely to accept the deal given MVIL's influence over the company. I do not expect any regulatory scrutiny from CFIUS given MITO's size. In my view, the risks here boil down to whether MVIL can walk away from the acquisition. There are several reasons why offer withdrawal seems unlikely: MITO's key phase 3 drug for Barth Syndrome seems to have a good chance of being approved by the FDA despite its rejection in October 2021. The buyer seems to be a reputable Chinese PE/VC firm and already has full control over MITO. According to the acquisition proposal, MVIL is willing complete the transaction with a "superior degree of speed" and without broad due diligence which could point to a quick buyout timeline. MITO's stock price is currently below its most recently reported net cash levels ($0.27/ADS). However, the company is burning cash at a rapid pace - the latest estimate is that the company has enough cash to fund operating expenses into Q4'22. Having said that, offer withdrawal from the Chinese company remains a risk, particularly given non-binding nature of the proposal. In my experience, non-binding takeover offers from Chinese companies generally have a noticeably lower closing rate than binding proposals. Investors should also be aware that there is a possibility that the Chinese government interrupts the payment of funds to foreign shareholders if the merger closes. MITO MITO is a ~$16m market cap clinical-stage biopharma that was founded in 2006 and IPO'ed in 2019. The company is involved in mitochondrial medicine discovery, development and commercialization. The share price has continued to decline since going public and now MITO trades close to an all-time low. This can be attributed to a couple of the company's operational failures: In 2019, MITO failed a phase 3 drug trial for a primary mitochondrial myopathy ((PNM)) drug. This was a key reason behind the 75%+ share price plunge in Dec'19. In May 2022, the company failed a phase 2 trial for elamipretide treatment for blind people. In July 2022 (already after the non-binding offer announcement) - shares sold off 15% on 5x heavier volume upon receipt of NASDAQ non-compliance warning - unlikely to be an issue while the current transaction is pending. Since the 2019 failure, the company's most advanced drug has been elamipretide for treatment of Barth Syndrome. It's currently in its Phase 3 trial. MITO has sought FDA approval for the drug since 2021. However, last fall, the FDA declined to review MITO's NDA (new drug application) as it lacked additional controlled data. The FDA recommended designing a new clinical trial instead of using historical medical records of patients as control group data. Recently, however, the drug was granted a pre-NDA meeting. Reportedly, MITO will present new clinical data collected over 3.5 years, however, it will come from the same open-label extension of the ongoing phase 2/3 study and not a new trial. The FDA has previously said that an open-label extension study would not provide enough evidence to support an NDA. However, there are several reasons to expect the FDA to eventually approve the drug: The original application showed that trial goals were met - the problem was that the data was compared to historical medical records. Nevertheless, this is encouraging and likely shows the drug's efficacy. The company has also emphasized that the trial results have been "durable" across all patients. Barth Syndrome is an ultra-rare disease - only around 130 individuals in the US have the condition. For this reason, a new clinical trial is inherently hard to design and carry out. MITO has also stated that the FDA itself did not identify a suitable trial design. BridgeBio Pharma's first FDA approval for a rare disease in early 2021 appears to be a similar case. The clinical trial relied on the same design as MITO's - historical medical records were used as control data. MITO has openly said that it did not expect the first NDA to be approved but was rather pushed by a community of Barth Syndrome advocates. The fact that now MITO has new data is encouraging. The drug for Barth Syndrome has already received orphan drug, rare pediatric and fast track designations from the FDA, showing its uniqueness and essentiality for some part of the population. There are no FDA-approved drugs for the disease and other treatments are potentially years away. The meeting is expected in Q3'22. Overall, FDA approval is far from guaranteed but it is clearly a high-potential phase 3 drug and probably explains why the controlling shareholder wants to cash out minority shareholders before the expected approval.
Seeking Alpha • Jul 11

Stealth BioTherapeutics receives Nasdaq non-compliance receipt

A clinical-stage biotechnology company, Stealth BioTherapeutics (NASDAQ:MITO) received a letter from Nasdaq on July 7, 2022 for not meeting with minimum bid price and market value of listed securities requirements.  Company requests an appeal, trading of the company's ADS will be suspended at the opening of business on July 18, 2022. Shares +1.1% after hours
Analysis Article • Dec 31

Reflecting on Stealth BioTherapeutics' (NASDAQ:MITO) Share Price Returns Over The Last Year

Stealth BioTherapeutics Corp ( NASDAQ:MITO ) shareholders should be happy to see the share price up 15% in the last...

Earnings and Revenue Growth Forecasts

NasdaqGM:MITO - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/2024N/A-48N/AN/A1
12/31/2023N/A-48N/AN/A2
12/31/2022N/A-45N/AN/A2
12/31/2021N/A-53-45-45N/A
9/30/2021N/A-51N/AN/AN/A
6/30/2021N/A-56-44-44N/A
3/31/2021N/A-50N/AN/AN/A
12/31/2020N/A-57-54-54N/A
9/30/202021-35-39-38N/A
6/30/202021-41N/AN/AN/A
3/31/202021-44N/AN/AN/A
12/31/201921-72-48-48N/A
9/30/2019N/A-102-75-74N/A
6/30/2019N/A-108N/AN/AN/A
3/31/2019N/A-120N/AN/AN/A
12/31/2018N/A-97-72-72N/A
9/30/2018N/A-92-69-69N/A
12/31/2017N/A-83-70-70N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MITO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MITO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MITO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if MITO's revenue is forecast to grow faster than the US market.

High Growth Revenue: MITO is forecast to have no revenue next year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MITO's Return on Equity is forecast to be high in 3 years time

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/11/16 14:15
End of Day Share Price 2022/11/15 00:00
Earnings2021/12/31
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

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Industry and Sector Metrics

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Analyst Sources

Stealth BioTherapeutics Corp is covered by 9 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullBMO Capital Markets Equity Research
Charles DuncanCantor Fitzgerald & Co.
Joshua SchimmerEvercore ISI