Theranexus Société Anonyme's (EPA:ALTHX): Theranexus société anonyme, a biopharmaceutical company, develops drug candidates for the treatment of central nervous system disorders. With the latest financial year loss of -€5.3m and a trailing-twelve month of -€6.0m, the €9.1m market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which ALTHX will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for ALTHX’s growth and when analysts expect the company to become profitable.
ALTHX is bordering on breakeven, according to the 2 Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of €13m in 2021. So, ALTHX is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which ALTHX must grow year-on-year. It turns out an average annual growth rate of 113% 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 ALTHX’s growth isn’t the focus of this broad overview, however, keep in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before I wrap up, there’s one aspect worth mentioning. ALTHX has managed its capital judiciously, with debt making up 30% of equity. This means that ALTHX has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of ALTHX which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ALTHX, take a look at ALTHX’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should look at:
- Valuation: What is ALTHX 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 ALTHX 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 Theranexus Société Anonyme’s board and the CEO’s back ground.
- 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.
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