Yahoo Finance When Will Vivoryon Therapeutics N.V. (AMS:VVY) Become Profitable?
Vivoryon Therapeutics N.V. (AMS:VVY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Vivoryon Therapeutics N.V., a clinical stage biopharmaceutical company, engages in the research, development, and commercialize small molecule-based medicines. On 31 December 2023, the €21m market-cap company posted a loss of €28m for its most recent financial year. The most pressing concern for investors is Vivoryon Therapeutics' 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.
Check out our latest analysis for Vivoryon Therapeutics
Vivoryon Therapeutics is bordering on breakeven, according to the 3 Dutch Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €19m in 2025. Therefore, the company is expected 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 73%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Vivoryon Therapeutics' upcoming projects, but, bear in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. Vivoryon Therapeutics 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 Vivoryon Therapeutics 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 Vivoryon Therapeutics, take a look at Vivoryon Therapeutics' company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Historical Track Record: What has Vivoryon Therapeutics' 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 Vivoryon Therapeutics' 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.
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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.
