Judgment: BUY Septerna trades at a striking discount to its balance sheet (market cap ~$190M vs. $561.6M in cash and securities as of 9/30/25), with liquidity the company expects to fund operations into 2029. The Novo collaboration ($195M upfront, full cost reimbursement, multi‑program milestones/profit‑share option) validates the GPCR platform while providing non‑dilutive support and deferred revenue visibility. Near-term catalyst risk is focused on SEP‑631 Phase 1 SAD/MAD data in 1H 2026. While platform novelty and the SEP‑786 discontinuation underscore clinical/regulatory risk, the multi-asset, partnership-backed model and retained platform rights create an attractive downside buffer with upside optionality. WATCH ITEMS: • SEP‑631 Phase 1 SAD/MAD readout (1H 2026): Clean safety, dose‑proportional PK, and signs of target engagement would reinforce/upgrade conviction; safety liabilities or weak PK/PD would drive a shift to HOLD/SELL. • Novo collaboration execution: Continued cost reimbursement, milestone receipts, and program progression (vs. delays/terminations or adverse accounting on deferred revenue) would increase (vs. decrease) conviction and position size. • Valuation vs. cash/liquidity: If shares rerate materially above net cash before clinical validation, move to HOLD to protect margin of safety; if the discount persists while execution remains on track, maintain/add to BUY.