Yahoo Finance When Can We Expect A Profit From Inovio Pharmaceuticals, Inc. (NASDAQ:INO)?
With the business potentially at an important milestone, we thought we'd take a closer look at Inovio Pharmaceuticals, Inc.'s (NASDAQ:INO) future prospects. Inovio Pharmaceuticals, Inc., a biotechnology company, focuses on the discovery, development, and commercialization of DNA medicines to treat and protect people from diseases associated with human papillomavirus (HPV), cancer, and infectious diseases. On 31 December 2020, the US$1.8b market-cap company posted a loss of US$166m for its most recent financial year. As path to profitability is the topic on Inovio Pharmaceuticals' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Inovio Pharmaceuticals
Inovio Pharmaceuticals is bordering on breakeven, according to the 9 American Biotechs analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$153m in 2022. So, the company is predicted to breakeven just over a year from today. 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 54%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Inovio Pharmaceuticals' growth isn’t the focus of this broad overview, but, bear in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 4.0% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Inovio Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Inovio Pharmaceuticals' company page on Simply Wall St. We've also put together a list of important factors you should further research:
Historical Track Record: What has Inovio Pharmaceuticals' 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Inovio Pharmaceuticals' 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. 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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