Yahoo Finance Antisense Therapeutics Limited (ASX:ANP): Is Breakeven Near?
With the business potentially at an important milestone, we thought we'd take a closer look at Antisense Therapeutics Limited's (ASX:ANP) future prospects. Antisense Therapeutics Limited, a biopharmaceutical company, engages in the research and development of novel antisense pharmaceuticals in Australia. On 30 June 2021, the AU$98m market-cap company posted a loss of AU$8.1m for its most recent financial year. The most pressing concern for investors is Antisense Therapeutics' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Antisense Therapeutics
According to the 2 industry analysts covering Antisense Therapeutics, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of AU$21m in 2024. So, the company is predicted to breakeven approximately 3 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 54% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Antisense Therapeutics' growth isn’t the focus of this broad overview, however, keep in mind that by and large pharmaceuticals, 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.
Before we wrap up, there’s one aspect worth mentioning. Antisense Therapeutics currently has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which typically has high 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:
This article is not intended to be a comprehensive analysis on Antisense Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Antisense Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Valuation: What is Antisense Therapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Antisense Therapeutics is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Antisense Therapeutics’s board and the CEO’s background.
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.
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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