Yahoo Finance When Will BiVictriX Therapeutics Plc (LON:BVX) Become Profitable?
We feel now is a pretty good time to analyse BiVictriX Therapeutics Plc's (LON:BVX) business as it appears the company may be on the cusp of a considerable accomplishment. BiVictriX Therapeutics Plc, a biotechnology company, engages in the development of cancer therapies in the United Kingdom. The UK£12m market-cap company announced a latest loss of UK£2.5m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on BiVictriX Therapeutics' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for BiVictriX Therapeutics
Expectations from some of the British Biotechs analysts is that BiVictriX Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of UK£2.9m in 2025. The company is therefore projected to breakeven around 2 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 53% 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 BiVictriX Therapeutics given that this is a high-level summary, however, take into account 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 BiVictriX Therapeutics has no debt on its balance sheet, which is rare for a loss-making biotech, 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.
Next Steps:
There are key fundamentals of BiVictriX 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 BiVictriX Therapeutics, take a look at BiVictriX Therapeutics' company page on Simply Wall St. We've also put together a list of essential factors you should look at:
Historical Track Record: What has BiVictriX 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 BiVictriX 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.
