Denali Therapeutics Inc.
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Range $26 – $41
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About the company
Denali Therapeutics Inc. is a biopharmaceutical firm, founded in 2013 and based in South San Francisco, California, which focuses on identifying and advancing treatments for neurodegenerative conditions within the United States. The company, initially known as SPR Pharma Inc.
- CEO
- Ryan J. Watts
- IPO
- 2017
- Employees
- 503
- HQ
- South San Francisco, CA, US
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- Market Cap
- $3.93B
- P/E
- -8.74
- PEG
- 5.11
- P/S
- 1093.43
- P/B
- 5.57
- EV/EBITDA
- -7.57
- Div Yield
- 0.00%
- Gross Margin
- -61.04%
- Op Margin
- -15058.19%
- Net Margin
- -14191.20%
- ROE
- -55.27%
- ROIC
- -50.82%
Latest fiscal year · YoY change
- Revenue
- $0+0.0%
- Gross Profit
- $-11,183,000+0.0%
- Op Income
- $-555,342,000
- Net Income
- $-512,540,000-21.2%
- EPS
- $-2.97-15.6%
- OCF Growth
- -18.7%
- FCF Growth
- -16.1%
- 52W High
- $27.30
- 52W Low
- $12.58
- 50D MA
- $24.16
- 200D MA
- $20.37
- Beta
- 1.00
- RSI (14)
- 53
- Avg Volume
- 1.78M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Denali’s first full AVLAYAH launch quarter showed an early commercial ramp, with $3.6 million in net product revenue and management pointing to stronger-than-expected demand, expanding coverage, and a well-capitalized balance sheet.· August 6, 2026
- AVLAYAH generated $3.6 million in net product revenue in its first full commercial quarter.
- Management said early launch indicators are strong: physician awareness, family engagement, and payer coverage are all improving, with commercial coverage above 50% of covered lives.
- Q3 AVLAYAH net product revenue is guided to $10 million to $12 million, with management framing this as the beginning of an S-curve rather than the peak of launch demand.
- Denali ended Q2 with about $940 million in cash, cash equivalents, and marketable securities, and July PRV proceeds of $195 million lifted pro forma cash above $1.1 billion.
- Two Alzheimer’s programs, DNL628 and DNL921, advanced into clinical development, with initial data for both expected in 2027.
Denali reported second-quarter AVLAYAH net product revenue of $3.6 million, its first full commercial quarter. R&D expense was $97 million versus $102.7 million a year ago, while SG&A was $36.3 million versus $32.3 million in Q2 2025, mainly due to AVLAYAH launch spending. The company ended Q2 with approximately $940 million in cash, cash equivalents, and marketable securities, and after receiving $195 million from the priority review voucher sale in July, pro forma cash exceeded $1.1 billion. For Q3, management guided AVLAYAH net product revenue to $10 million to $12 million.
Ryan Watts characterized the quarter as transformative, saying Denali became a commercial company with AVLAYAH and achieved the first proof that its transport vehicle platform can produce an approved medicine. He emphasized the platform’s breadth, highlighting a growing commercial product, a broad pipeline, and what he called a validated and scalable BBB-transport technology. His tone was upbeat but measured, repeatedly framing AVLAYAH as the beginning of a longer growth story rather than the finish line.
Alexander Schuth emphasized balance-sheet strength and capital discipline, citing about $940 million in cash, cash equivalents, and marketable securities at quarter-end and more than $1.1 billion pro forma after the $195 million PRV sale in July. He said that funding supports three priorities: AVLAYAH launch execution, preparation for DNL126 in 2027, and advancement of clinical programs, while also building internal manufacturing capabilities and preserving strategic flexibility. On expenses, he noted R&D fell to $97 million from $102.7 million year over year, while SG&A rose to $36.3 million from $32.3 million because of launch investments.
Analysts focused heavily on AVLAYAH launch dynamics, asking whether Q3 guidance implies continued growth and whether the launch is seeing a bolus effect. Management said confidence comes from strong physician awareness, family engagement, and payer progress, but acknowledged the initial patient wave is bigger than expected and that broader adoption should continue as access expands. Questions also centered on commercialization metrics, but Katie Peng said Denali is prioritizing revenue guidance over start forms or patient counts because individual journeys are highly variable. In the pipeline, analysts pressed on DNL593 timing and biomarkers, and management said it is waiting longer to better assess NfL and the broader biomarker set in hopes of maximizing the chance of an accelerated path.
The call showed a commercially validated platform with an early launch that management believes is outperforming initial expectations. AVLAYAH already has more than 50% commercial coverage, strong physician and family engagement, and Q3 revenue guidance materially above Q2, while Denali also has a large cash cushion. Beyond the launch, management pointed to two Alzheimer’s programs now in clinic and a broader pipeline that could create multiple shots on goal.
Management repeatedly acknowledged that AVLAYAH is still in the early stages and that patient journeys are highly variable, especially for switch patients navigating reimbursement and infusion logistics. The company also made clear that the launch is still building toward an S-curve, which means the current revenue base is small relative to the stated opportunity. On the pipeline side, key readouts are still well ahead in 2027, and DNL593’s data timing has moved later to the first half of 2027, delaying the next major catalyst.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 93.7%
- Shares Outstanding
- 158.71M
- Float Shares
- 148.71M
of shares held by institutions
282 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| T. Rowe Price Investment Management, Inc. | 16.18M | ▲ 7.66M |
| Blackrock, Inc. | 14.03M | ▲ 991.98K |
| Vanguard Group Inc | 13.06M | ▲ 1.06M |
| Baillie Gifford & Co | 11.96M | ▼ 106.25K |
| State Street Corp | 7.05M | ▲ 777.30K |
| Temasek Holdings (Private) Ltd | 7.01M | 0 |
| Vanguard Capital Management LLC | 6.28M | ▲ 127.77K |
| Fmr LLC | 4.54M | ▼ 39.54K |
| Goldman Sachs Group Inc | 4.16M | ▼ 251.36K |
| Geode Capital Management, LLC | 3.97M | ▲ 246.23K |
| Holocene Advisors, LP | 3.91M | ▲ 709.80K |
| Baker Bros. Advisors LP | 3.73M | ▲ 2.64K |
Held by 271 ETFs
Biggest fund positions in DNLI by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 12, 26 | Watts Ryan J. | other | 32,220 |
| Aug 11, 26 | Schuth Alexander O. | sell | 2,857 |
| Jun 3, 26 | FLATLEY JAY T | other | 6,408 |
| Jun 3, 26 | FLATLEY JAY T | other | 19,226 |
| Jun 3, 26 | Klein Peter S | other | 6,408 |
| Jun 3, 26 | Klein Peter S | other | 19,226 |
| Jun 3, 26 | Krognes Steve E. | other | 6,408 |
| Jun 3, 26 | Krognes Steve E. | other | 19,226 |
| Jun 3, 26 | Schenkein David P | other | 6,408 |
| Jun 3, 26 | Schenkein David P | other | 19,226 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our DNLI coverage
Recent articles, reports, and earnings notes.
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Generate DNLI report →Denali Therapeutics: Bullish On Avlayah And Their Prospects
seekingalpha.com · Aug 19
Head to Head Comparison: Denali Therapeutics (NASDAQ:DNLI) versus Humacyte (NASDAQ:HUMA)
defenseworld.net · Aug 19
Denali Therapeutics: AVLAYAH Converts A Platform Story Into A Commercial One
seekingalpha.com · Aug 13
Baillie Gifford Trims Denali Therapeutics (DNLI) Stake in June Reduction
gurufocus.com · Aug 10
Denali Therapeutics Inc. $DNLI Shares Acquired by California State Teachers Retirement System
defenseworld.net · Aug 10
DNLI Q2 Loss Narrows, Avlayah Sales Drive Strong Launch Momentum
zacks.com · Aug 7
Denali Therapeutics Inc. (DNLI) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 7
Denali Therapeutics Q2 Earnings Call Highlights
marketbeat.com · Aug 6
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