Yahoo Finance When Will Immunic, Inc. (NASDAQ:IMUX) Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Immunic, Inc.'s (NASDAQ:IMUX) future prospects. Immunic, Inc., a biotechnology company, develops a pipeline of selective oral immunology therapies for the treatment of chronic inflammatory and autoimmune diseases in the United States and Germany. The company’s loss has recently broadened since it announced a US$94m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$98m, moving it further away from breakeven. The most pressing concern for investors is Immunic'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.
View our latest analysis for Immunic
Consensus from 5 of the American Biotechs analysts is that Immunic is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$45m in 2026. The company is therefore projected to breakeven around 2 years from now. 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 63% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Immunic given that this is a high-level summary, though, keep in mind that generally 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.
Before we wrap up, there’s one aspect worth mentioning. Immunic currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Immunic 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 Immunic, take a look at Immunic's company page on Simply Wall St. We've also put together a list of key factors you should look at:
Historical Track Record: What has Immunic'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Immunic'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.
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.
