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Cellectis S.A. 20-F Analysis & Summary – 3/14/2025

⚠️This is not investment advice.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️

Cellectis S.A.

Filing date:

03/14/2025

TLDR:

ELI5:

Cellectis, a company working on new cancer treatments, made a lot more money in 2024 thanks to a partnership with AstraZeneca, which helped them lose less money overall. They have enough cash to keep going for a few more years, but they still face challenges in testing, making, and getting their treatments approved.

Accession #:

0000950170-25-039038

Published on

Analyst Summary

  • Significant revenue increase in 2024 driven by the AstraZeneca collaboration and milestone payments, resulting in revenue of $41.505 million compared to $0.755 million in 2023.
  • Net loss substantially reduced to $36.761 million in 2024 from $108.443 million in 2023, primarily due to increased revenue and financial gains.
  • R&D expenses remain high at $90.536 million, reflecting the company’s focus on clinical development.
  • Cash and cash equivalents increased to $143.251 million, providing a cash runway into 2027.
  • Management expresses confidence in the company’s technology and strategic direction, focusing on advancing UCART product candidates and scaling manufacturing capabilities.
  • Emphasis on strategic collaborations to drive development and commercialization.
  • Gross Profit Margin decreased from 197.6% in 2023 to 100% in 2024, a -49.4% change.
  • Operating Profit Margin improved from -1288.7% in 2023 to -143.5% in 2024, a 88.9% change.
  • Net Profit Margin improved from -1435.1% in 2023 to -88.6% in 2024, a 93.8% change.
  • Return on Assets (ROA) improved from -32.4% in 2023 to -9.6% in 2024, a 70.4% change.
  • Return on Equity (ROE) improved from -128.0% in 2023 to -28.1% in 2024, a 78.0% change.
  • Earnings Per Share (EPS) increased from -1.77 in 2023 to -0.41 in 2024, a 76.8% change.
  • Current Ratio increased from 1.50 in 2023 to 1.73 in 2024, a 15.3% change.
  • Quick Ratio (Acid-Test Ratio) increased from 1.50 in 2023 to 1.73 in 2024, a 15.3% change.
  • Cash Ratio decreased from 0.88 in 2023 to 0.86 in 2024, a -2.3% change.
  • Debt-to-Equity Ratio decreased from 2.95 in 2023 to 1.93 in 2024, a -34.6% change.
  • Debt-to-Assets Ratio decreased from 0.75 in 2023 to 0.66 in 2024, a -12.0% change.
  • Interest Coverage Ratio (Times Interest Earned) decreased from -1.39 in 2023 to -1.75 in 2024, a -25.9% change.
  • Asset Turnover increased from 0.002 in 2023 to 0.11 in 2024, a 5400% change.
  • Price-to-Earnings Ratio (P/E) increased from -0.70 in 2023 to -3.02 in 2024, a 331.4% change.
  • Price-to-Book Ratio (P/B) decreased from 1.06 in 2023 to 0.68 in 2024, a -35.8% change.
  • Price-to-Sales Ratio (P/S) decreased from 118.4 in 2023 to 2.15 in 2024, a -98.2% change.
  • Enterprise Value to EBITDA (EV/EBITDA) is -1.41.
  • Revenue Growth increased from -96.1% to 5400%.
  • Net Income Growth increased from -4.9% to -66.1%.
  • EPS Growth increased from -23.9% to -76.8%.

Opportunities and Risks

  • Clinical Trial Risks: High risk of failure in clinical trials, potential delays, and adverse events.
  • Manufacturing Challenges: Complex and heavily regulated manufacturing process, potential scalability issues.
  • Regulatory Hurdles: Uncertain regulatory landscape for gene-editing therapies, potential delays in approvals.
  • Competition: Intense competition from other biotechnology and pharmaceutical companies.
  • Reliance on Third Parties: Dependence on third parties for manufacturing, clinical trials, and commercialization.
  • AstraZeneca Influence: AstraZeneca’s significant influence over the company.
  • Promising Technology Platform: TALEN gene-editing technology offers potential for developing effective allogeneic CAR T-cell therapies.
  • Strategic Collaborations: Partnerships with AstraZeneca, Allogene, and Servier provide financial support and development expertise.
  • Growing Market: Immuno-oncology market is expanding, with increasing demand for innovative cancer treatments.
  • Orphan Drug Designations: Orphan drug designations for UCART22 and CLLS52 offer potential market exclusivity and regulatory benefits.

Potential Implications

Company Performance

  • Continued clinical trial progress is crucial for future success.
  • Successful scaling of manufacturing capabilities is essential to meet potential demand.
  • Navigating the evolving regulatory landscape will be critical for timely approvals.
  • Maintaining strong relationships with key partners is important for mitigating risks associated with reliance on third parties.
  • The company’s ability to manage expenses and leverage its assets to achieve profitability.

Stock Price

  • Positive clinical trial results could drive stock price appreciation.
  • Regulatory approvals could lead to significant stock price increases.
  • Failure to meet clinical or regulatory milestones could negatively impact the stock price.
  • Changes in the competitive landscape could affect investor sentiment and stock valuation.

Cellectis S.A. – Form 20-F Filing Report (Fiscal Year Ended December 31, 2024)

Executive Summary

This report analyzes Cellectis S.A.’s Form 20-F filing for the fiscal year ended December 31, 2024. Cellectis, a clinical-stage biopharmaceutical company focused on gene-edited allogeneic CAR T-cell therapies, faces significant risks and opportunities. While the company has a promising technology platform and strategic collaborations, it has a history of net losses and faces intense competition. The company’s cash runway extends into 2027, but future financing needs are likely. Key areas of concern include clinical trial risks, manufacturing complexities, regulatory hurdles, and reliance on third parties. The overall assessment is Hold, reflecting the potential upside of the technology balanced against the inherent risks of the biopharmaceutical industry and the company’s financial position. Recommendations include closely monitoring clinical trial progress, manufacturing scalability, and the evolving regulatory landscape.

Company Overview

Cellectis S.A. is a French biopharmaceutical company specializing in the development of allogeneic CAR T-cell immunotherapies for cancer treatment. Their proprietary TALEN gene-editing technology is central to their approach, enabling the creation of “off-the-shelf” CAR T-cell therapies derived from healthy donors. The company has strategic collaborations with AstraZeneca, Allogene, and Servier. Recent developments include the ongoing clinical trials for UCART22 and UCART20x22, and the completion of the additional equity investment from AstraZeneca. The deconsolidation of Calyxt (now Cibus, Inc.) in 2023 marked a shift in focus to the therapeutics business.

Financial Statement Analysis

Key Financial Data (USD in thousands)

Metric 2022 2023 2024 Change (2023-2024)
Revenues 19,171 755 41,505 +40,750
Research and Development Expenses (97,501) (87,646) (90,536) (2,890)
Selling, General & Administrative Expenses (17,494) (16,812) (19,085) (2,273)
Net Loss (114,034) (108,443) (36,761) +71,682
Cash and Cash Equivalents 93,216 136,708 143,251 +6,543

Key Ratios and Trends

  • Revenue Growth: Significant increase in revenue in 2024 driven by the AstraZeneca collaboration and milestone payments.
  • R&D Spending: R&D expenses remain high, reflecting the company’s focus on clinical development.
  • Net Loss Reduction: Substantial reduction in net loss in 2024, primarily due to increased revenue and financial gains.
  • Cash Position: Healthy cash position provides a runway into 2027.

Management’s Discussion and Analysis (MD&A) Insights

  • Management expresses confidence in the company’s technology and strategic direction.
  • Focus on advancing UCART product candidates and scaling manufacturing capabilities.
  • Emphasis on strategic collaborations to drive development and commercialization.

Risk & Opportunity Assessment

Key Risks

  • Clinical Trial Risks: High risk of failure in clinical trials, potential delays, and adverse events.
  • Manufacturing Challenges: Complex and heavily regulated manufacturing process, potential scalability issues.
  • Regulatory Hurdles: Uncertain regulatory landscape for gene-editing therapies, potential delays in approvals.
  • Competition: Intense competition from other biotechnology and pharmaceutical companies.
  • Reliance on Third Parties: Dependence on third parties for manufacturing, clinical trials, and commercialization.
  • AstraZeneca Influence: AstraZeneca’s significant influence over the company.

Key Opportunities

  • Promising Technology Platform: TALEN gene-editing technology offers potential for developing effective allogeneic CAR T-cell therapies.
  • Strategic Collaborations: Partnerships with AstraZeneca, Allogene, and Servier provide financial support and development expertise.
  • Growing Market: Immuno-oncology market is expanding, with increasing demand for innovative cancer treatments.
  • Orphan Drug Designations: Orphan drug designations for UCART22 and CLLS52 offer potential market exclusivity and regulatory benefits.

Conclusion & Actionable Insights

Cellectis S.A. is a company with significant potential in the field of gene-edited allogeneic CAR T-cell therapies. The company’s strong technology platform, strategic collaborations, and healthy cash position provide a foundation for future growth. However, the inherent risks of the biopharmaceutical industry, including clinical trial uncertainties, manufacturing complexities, and regulatory hurdles, must be carefully considered. The overall assessment is Hold.

Recommendations

  • Monitor Clinical Trial Progress: Closely track the progress of ongoing clinical trials for UCART22 and UCART20x22, paying attention to safety and efficacy data.
  • Assess Manufacturing Scalability: Evaluate the company’s ability to efficiently and effectively scale its manufacturing process to meet future demand.
  • Navigate Regulatory Landscape: Stay informed about the evolving regulatory landscape for gene-editing therapies and proactively address potential challenges.
  • Manage Third-Party Relationships: Ensure strong relationships with key partners and mitigate risks associated with reliance on third parties.
  • Monitor AstraZeneca Influence: Evaluate the potential impact of AstraZeneca’s significant influence on the company’s strategic decisions.

1. Commentary:

Cellectis S.A. experienced a significant increase in revenue in 2024, driven primarily by collaboration agreements, but remains unprofitable. The company reduced its net loss substantially compared to the previous two years, mainly due to financial gains and decreased operating expenses. Cellectis maintains a strong liquidity position with a substantial amount of cash and current financial assets. While revenue growth is a positive sign, the company needs to continue managing its expenses and leverage its assets to achieve profitability.

2. Financial Ratio and Metric Analysis:

Profitability:

  • Metric: Gross Profit Margin

    • Metric: (Revenue – Cost of Revenue) / Revenue

    • 2022: (19,171 – (-1,772)) / 19,171 = 109.2%

    • 2023: (755 – (-737)) / 755 = 197.6%

    • 2024: (41,505 – 0) / 41,505 = 100%

  • Trend: Increased from 197.6% in 2023 to 100% in 2024, a -49.4% change.

  • Industry: Biotech companies in the clinical stage often have variable or negative gross profit margins due to high R&D costs and inconsistent revenue streams. A 100% gross profit margin suggests that Cellectis has no cost of goods sold for its revenue.

  • Metric: Operating Profit Margin

    • Metric: Operating Income (Loss) / Revenue

    • 2022: (-89,666) / 19,171 = -467.7%

    • 2023: (-97,302) / 755 = -1288.7%

    • 2024: (-59,554) / 41,505 = -143.5%

  • Trend: Improved from -1288.7% in 2023 to -143.5% in 2024, a 88.9% change.

  • Industry: The operating profit margin for biotech companies is typically low or negative due to substantial R&D expenses. An improving operating margin suggests better cost control relative to revenue.

  • Metric: Net Profit Margin

    • Metric: Net Income (Loss) / Revenue

    • 2022: (-114,034) / 19,171 = -594.8%

    • 2023: (-108,443) / 755 = -1435.1%

    • 2024: (-36,761) / 41,505 = -88.6%

  • Trend: Improved from -1435.1% in 2023 to -88.6% in 2024, a 93.8% change.

  • Industry: Similar to operating profit margin, a negative net profit margin is common in biotech. The significant improvement indicates a move towards potential profitability.

  • Metric: Return on Assets (ROA)

    • Metric: Net Income (Loss) / Total Assets

    • 2022: (-114,034) / 261,216 = -43.7%

    • 2023: (-108,443) / 334,270 = -32.4%

    • 2024: (-36,761) / 383,544 = -9.6%

  • Trend: Improved from -32.4% in 2023 to -9.6% in 2024, a 70.4% change.

  • Industry: ROA is typically low or negative for biotech companies in the development phase. The improvement suggests better asset utilization.

  • Metric: Return on Equity (ROE)

    • Metric: Net Income (Loss) / Total Shareholders’ Equity

    • 2022: (-114,034) / 125,941 = -90.5%

    • 2023: (-108,443) / 84,695 = -128.0%

    • 2024: (-36,761) / 131,033 = -28.1%

  • Trend: Improved from -128.0% in 2023 to -28.1% in 2024, a 78.0% change.

  • Industry: ROE is often negative for biotech companies. The improvement indicates better returns to shareholders relative to their equity.

  • Metric: Earnings Per Share (EPS) – Basic and Diluted

    • Metric: Net Income (Loss) Attributable to Shareholders / Weighted Average Shares Outstanding

    • 2022: (-106,139) / 45,547,359 = -2.33

    • 2023: (-101,059) / 57,012,815 = -1.77

    • 2024: (-36,761) / 90,566,346 = -0.41

  • Trend: Increased from -1.77 in 2023 to -0.41 in 2024, a 76.8% change.

  • Industry: Negative EPS is typical for biotech companies. The increase indicates a smaller loss per share.

Liquidity:

  • Metric: Current Ratio

    • Metric: Current Assets / Current Liabilities

    • 2023: 233,005 / 155,144 = 1.50

    • 2024: 287,069 / 166,269 = 1.73

  • Trend: Increased from 1.50 in 2023 to 1.73 in 2024, a 15.3% change.

  • Industry: A current ratio above 1 indicates good liquidity. The increase suggests improved ability to meet short-term obligations.

  • Metric: Quick Ratio (Acid-Test Ratio)

    • Metric: (Current Assets – Inventory) / Current Liabilities

    • 2023: 233,005 / 155,144 = 1.50

    • 2024: 287,069 / 166,269 = 1.73

  • Trend: Increased from 1.50 in 2023 to 1.73 in 2024, a 15.3% change.

  • Industry: A quick ratio above 1 indicates good short-term liquidity. The increase suggests improved ability to meet short-term obligations without relying on inventory.

  • Metric: Cash Ratio

    • Metric: (Cash & Cash Equivalents) / Current Liabilities

    • 2023: 136,708 / 155,144 = 0.88

    • 2024: 143,251 / 166,269 = 0.86

  • Trend: Decreased from 0.88 in 2023 to 0.86 in 2024, a -2.3% change.

  • Industry: A cash ratio close to 1 indicates a strong ability to cover current liabilities with cash. The slight decrease suggests a minor reduction in immediate liquidity.

Solvency/Leverage:

  • Metric: Debt-to-Equity Ratio

    • Metric: Total Liabilities / Total Shareholders’ Equity

    • 2023: 249,575 / 84,695 = 2.95

    • 2024: 252,511 / 131,033 = 1.93

  • Trend: Decreased from 2.95 in 2023 to 1.93 in 2024, a -34.6% change.

  • Industry: A high debt-to-equity ratio can indicate higher risk. The decrease suggests a healthier balance sheet with less reliance on debt.

  • Metric: Debt-to-Assets Ratio

    • Metric: Total Liabilities / Total Assets

    • 2023: 249,575 / 334,270 = 0.75

    • 2024: 252,511 / 383,544 = 0.66

  • Trend: Decreased from 0.75 in 2023 to 0.66 in 2024, a -12.0% change.

  • Industry: A lower debt-to-assets ratio indicates a smaller proportion of assets are financed by debt, suggesting lower financial risk.

  • Metric: Interest Coverage Ratio (Times Interest Earned)

    • Metric: EBIT / Interest Expense

    • 2023: -97,302 + 40,642 / 40,642 = -1.39

    • 2024: -59,554 + 21,614 / 21,614 = -1.75

  • Trend: Decreased from -1.39 in 2023 to -1.75 in 2024, a -25.9% change.

  • Industry: A negative interest coverage ratio indicates the company is not generating enough operating income to cover interest expenses. The decrease suggests a worsening ability to cover interest payments.

Activity/Efficiency:

  • Metric: Asset Turnover

    • Metric: Revenue / Total Assets

    • 2023: 755 / 334,270 = 0.002

    • 2024: 41,505 / 383,544 = 0.11

  • Trend: Increased from 0.002 in 2023 to 0.11 in 2024, a 5400% change.

  • Industry: A higher asset turnover ratio indicates more efficient asset utilization. The increase suggests the company is generating more revenue per dollar of assets.

Valuation:

  • Metric: Price-to-Earnings Ratio (P/E)

    • Metric: Share Price / EPS

    • Share price at the time of reporting (CLLS – 2025-03-14 – $1.24)

    • 2022: 1.24 / -2.33 = -0.53

    • 2023: 1.24 / -1.77 = -0.70

    • 2024: 1.24 / -0.41 = -3.02

  • Trend: Increased from -0.70 in 2023 to -3.02 in 2024, a 331.4% change.

  • Industry: A negative P/E ratio is typical for unprofitable companies. It’s difficult to interpret meaningfully, but the increase suggests the market is pricing the stock higher relative to its losses.

  • Metric: Price-to-Book Ratio (P/B)

    • Metric: Market Cap / Total Shareholders’ Equity

    • Market Cap = Shares Outstanding * Share Price = 72,093,873 * 1.24 = 89,396,402.52

    • 2023: 89,396,402.52 / 84,695,000 = 1.06

    • 2024: 89,396,402.52 / 131,033,000 = 0.68

  • Trend: Decreased from 1.06 in 2023 to 0.68 in 2024, a -35.8% change.

  • Industry: A P/B ratio below 1 may indicate the stock is undervalued. The decrease suggests the market values the company’s equity at less than its book value.

  • Metric: Price-to-Sales Ratio (P/S)

    • Metric: Market Cap / Revenue

    • Market Cap = Shares Outstanding * Share Price = 72,093,873 * 1.24 = 89,396,402.52

    • 2023: 89,396,402.52 / 755,000 = 118.4

    • 2024: 89,396,402.52 / 41,505,000 = 2.15

  • Trend: Decreased from 118.4 in 2023 to 2.15 in 2024, a -98.2% change.

  • Industry: A lower P/S ratio can indicate better value. The significant decrease suggests the company’s revenue is better valued relative to its market cap.

  • Metric: Enterprise Value to EBITDA (EV/EBITDA)

    • Metric: (Market Cap + Total Debt – Cash) / EBITDA

    • Market Cap = Shares Outstanding * Share Price = 72,093,873 * 1.24 = 89,396,402.52

    • Total Debt = Non-current financial liabilities + Non-current lease debts + Current financial liabilities + Current lease debts = 50,882 + 34,245 + 16,134 + 8,385 = 109,646

    • EBITDA = Operating Income (Loss) + Depreciation and Amortization = -59,554 + 19,846 = -39,708

    • EV = 89,396,402.52 + 109,646,000 – 143,251,000 = 55,791,402.52

    • EV/EBITDA = 55,791,402.52 / -39,708,000 = -1.41

  • Industry: A negative EV/EBITDA ratio is common for unprofitable companies. It’s difficult to interpret meaningfully.

Growth Rates

  • Revenue Growth
    • Metric: (Current Revenue – Previous Revenue) / Previous Revenue
      • 2023: (755 – 19,171) / 19,171 = -96.1%
      • 2024: (41,505 – 755) / 755 = 5400%
  • Net Income Growth
    • Metric: (Current Net Income – Previous Net Income) / Previous Net Income
      • 2023: (-108,443 – (-114,034)) / -114,034 = -4.9%
      • 2024: (-36,761 – (-108,443)) / -108,443 = -66.1%
  • EPS Growth
    • Metric: (Current EPS – Previous EPS) / Previous EPS
      • 2023: (-1.77 – (-2.33)) / -2.33 = -23.9%
      • 2024: (-0.41 – (-1.77)) / -1.77 = -76.8%

Other Relevant Metrics:

  • AstraZeneca Collaboration:

    • The collaboration with AstraZeneca is a significant event. The initial investment of $80 million, with $35.728 million reallocated to the Joint Research and Collaboration Agreement (JRCA), indicates a strong commitment from AstraZeneca.

    • The subsequent investment agreements further solidify this partnership. The fair value of the AstraZeneca SIA derivative was $56.970 million as of May 3, 2024, and was derecognized.

  • Adjusted Net Income (Loss) attributable to shareholders of Cellectis:

    • This non-GAAP metric adjusts for non-cash stock-based compensation expense. It provides a view of the company’s performance excluding these non-cash items.

    • 2022: (-98,069)

    • 2023: (-93,973)

    • 2024: (-33,594)

    • Trend: Improved from -93,973 in 2023 to -33,594 in 2024, a 64.2% change.

    • The adjustments seem reasonable as they remove non-cash expenses, providing a clearer picture of operational performance.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️