With the business potentially at an important milestone, we thought we'd take a closer look atAntisense 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.
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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.
