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Analysts Expect Breakeven For OncoSil Medical Limited (ASX:OSL) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at OncoSil Medical Limited's (ASX:OSL) future prospects. OncoSil Medical Limited, a medical device company, focuses on the development and commercialization of localized radiation therapy for the treatment of pancreatic and distal cholangiocarcinoma in worldwide. On 30 June 2022, the AU$35m market-cap company posted a loss of AU$11m for its most recent financial year. The most pressing concern for investors is OncoSil Medical's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for OncoSil Medical

Expectations from some of the Australian Life Sciences analysts is that OncoSil Medical is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of AU$12m in 2025. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 57%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for OncoSil Medical given that this is a high-level summary, though, take into account that typically life science companies, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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Before we wrap up, there’s one aspect worth mentioning. OncoSil Medical currently has no debt on its balance sheet, which is quite unusual for a cash-burning life science company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of OncoSil Medical which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at OncoSil Medical, take a look at OncoSil Medical's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

  1. Historical Track Record: What has OncoSil Medical's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on OncoSil Medical's board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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