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We feel now is a pretty good time to analyse Abeona Therapeutics Inc.'s (NASDAQ:ABEO) business as it appears the company may be on the cusp of a considerable accomplishment. Abeona Therapeutics Inc., a clinical-stage biopharmaceutical company, develops gene and cell therapies for life-threatening diseases. The company’s loss has recently broadened since it announced a US$54m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$71m, moving it further away from breakeven. The most pressing concern for investors is Abeona 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.
See our latest analysis for Abeona Therapeutics
Consensus from 5 of the American Biotechs analysts is that Abeona Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$9.0m in 2027. Therefore, the company is expected to breakeven roughly 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 58% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Abeona Therapeutics' growth isn’t the focus of this broad overview, however, take into account that typically biotechs, 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.
One thing we would like to bring into light with Abeona Therapeutics is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Abeona Therapeutics' case is 41%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Abeona 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 Abeona Therapeutics, take a look at Abeona Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
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Valuation: What is Abeona Therapeutics 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 Abeona Therapeutics is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Abeona Therapeutics’s board and the CEO’s background.
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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.