Stock Analysis & Valuation ARS Pharmaceuticals, Inc. (SPRY)

• Previous Close: $9.99
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	45631.13	456668
Intrinsic value (DCF)	9803.82	98036
Graham-Dodd Method	3.06	-69
Graham Formula	23444.97	234584

Strategic Investment Analysis

Company Overview

ARS Pharmaceuticals, Inc. (NASDAQ: SPRY) is a biotechnology company focused on developing innovative treatments for severe allergic reactions. The company’s flagship product, Neffy, is an intranasal epinephrine spray designed to provide rapid relief for patients at risk of anaphylaxis due to food allergies, medications, or insect bites. Unlike traditional epinephrine auto-injectors, Neffy offers a needle-free, user-friendly alternative with comparable efficacy, addressing a critical unmet need in allergy management. Headquartered in San Diego, California, ARS Pharmaceuticals operates in the high-growth biotech sector, leveraging its proprietary absorption technology to differentiate itself in the competitive epinephrine market. With increasing global prevalence of severe allergies, ARS Pharmaceuticals is well-positioned to capture market share in a space dominated by injectable solutions. The company’s focus on patient convenience and safety underscores its potential to disrupt the $3+ billion epinephrine market.

Investment Summary

ARS Pharmaceuticals presents a compelling investment opportunity due to its innovative Neffy product, which targets a large and growing market for severe allergy treatments. The company’s needle-free intranasal epinephrine spray could gain rapid adoption given its ease of use and comparable efficacy to injectable alternatives. However, risks include regulatory hurdles, competition from established players like EpiPen, and the need for strong commercialization execution. With a market cap of ~$1.47B and positive net income in recent filings, SPRY shows financial stability, but investors should monitor FDA approvals and market penetration closely.

Competitive Analysis

ARS Pharmaceuticals’ primary competitive advantage lies in its novel intranasal delivery system for epinephrine, which eliminates the need for painful injections—a significant deterrent for many patients. Traditional epinephrine auto-injectors (e.g., EpiPen) dominate the market but face criticism for high costs, needle anxiety, and portability issues. Neffy’s absorption technology ensures rapid systemic delivery, positioning it as a viable alternative. The company’s challenge is overcoming entrenched competitors with strong brand recognition and established distribution networks. Additionally, emerging competitors like Bryn Pharma (with its under-the-tongue epinephrine) could intensify competition. ARS must leverage its first-mover advantage in intranasal delivery while navigating regulatory and reimbursement landscapes. Success hinges on demonstrating Neffy’s reliability in real-world settings and securing partnerships with allergists and pharmacies.

Major Competitors

• Vertex Pharmaceuticals Incorporated (VRTX): Vertex is a biotech leader with a strong pipeline but does not directly compete in epinephrine delivery. Its focus on rare diseases and cystic fibrosis gives it financial stability but limited overlap with ARS’s allergy market.
• Alkermes plc (ALKS): Alkermes specializes in CNS disorders and has expertise in drug delivery technologies. While not a direct competitor, its expertise in nasal sprays could pose future competition if it enters the epinephrine space.
• Viatris Inc. (MYL (now VTRS)): Viatris manufactures generic epinephrine auto-injectors, competing on price. Its scale and distribution are strengths, but it lacks innovation in delivery methods compared to ARS’s needle-free solution.
• KalVista Pharmaceuticals, Inc. (KALV): KalVista focuses on oral plasma kallikrein inhibitors for hereditary angioedema, a different allergic condition. Its niche focus limits direct competition with ARS’s broader anaphylaxis treatment.