Septerna 2025 Q1 Earnings Misses Targets as Net Loss Widens 51.6%

Septerna (SEPN) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Septerna's results fell short of expectations as the company faced a challenging quarter with an increased net loss. Despite the revenue decline, the recent partnership with Novo Nordisk offers a positive outlook. The collaboration is expected to significantly extend Septerna’s cash runway guidance to early 2028, with updated financial outlook guidance forthcoming following the agreement's closure.

Revenue
The total revenue of Septerna decreased by 30.9% to $219,000 in 2025 Q1, down from $317,000 in 2024 Q1.

Earnings/Net Income
Septerna narrowed losses to $0.49 per share in 2025 Q1 from a loss of $6.35 per share in 2024 Q1, a 92.3% improvement. However, the company's net loss widened to $21.48 million, marking a 51.6% increase from the $14.17 million loss recorded in 2024 Q1. Despite the improved EPS, the net income results are concerning.

Price Action
The stock price of Septerna has climbed 3.16% during the latest trading day, surged 45.61% during the most recent full trading week, and has surged 66.72% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Septerna (SEPN) shares following revenue announcements and holding for 30 days has consistently underperformed over the past five years, yielding a return of -50.37%, which is significantly worse than the benchmark return of -4.61%. This strategy resulted in an excess return of -45.76% and a negative compound annual growth rate (CAGR) of -72.44%, signaling substantial losses. Additionally, it experienced a high maximum drawdown of -84.64% and a Sharpe ratio of -0.41, indicating considerable risk and negative returns. Investors should exercise caution with this strategy given its historical performance.

CEO Commentary
“We are well positioned to create long-term value for patients and shareholders,” said Jeffrey Finer, M.D., Ph.D., Chief Executive Officer of Septerna. He emphasized the significance of the recent partnership with Novo Nordisk, which validates Septerna’s GPCR Native Complex Platform and aims to address unmet needs in metabolic disease. The collaboration will provide substantial resources to advance Septerna's pipeline, including a next-generation oral small molecule PTH1R agonist and the SEP-631 program for mast cell diseases, both of which are on track for clinical development in 2025.

Guidance
Septerna expects to select a next-generation oral small molecule PTH1R agonist candidate by the end of 2025 and initiate a Phase 1 clinical trial for SEP-631 in the third quarter of 2025. The collaboration with Novo Nordisk is projected to significantly extend the company’s cash runway guidance to early 2028. Following the closing of this collaboration agreement, Septerna plans to provide updated guidance on its financial outlook.

Additional News
Septerna recently announced a global collaboration agreement with Novo Nordisk to develop oral small molecule medicines for obesity, type 2 diabetes, and other cardiometabolic diseases. The agreement includes potential milestone payments of over $2.2 billion, with more than $200 million in upfront and near-term payments. Septerna is eligible for tiered royalties on global net sales of marketed products, while Novo Nordisk will cover all research and development expenses for partnered programs. Additionally, Septerna has appointed Gil Labrucherie as Chief Financial Officer to strengthen its leadership team and advance its strategic goals.