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With the business potentially at an important milestone, we thought we'd take a closer look at Amicus Therapeutics, Inc.'s (NASDAQ:FOLD) future prospects. Amicus Therapeutics, Inc., a biotechnology company, focuses on discovering, developing, and delivering novel medicines for rare diseases in the United States and internationally. The US$2.1b market-cap company announced a latest loss of US$56m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Amicus Therapeutics' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Amicus Therapeutics is bordering on breakeven, according to the 12 American Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$8.5m in 2025. The company is therefore projected to breakeven around a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 53%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Amicus Therapeutics given that this is a high-level summary, though, take into account that generally biotechs, 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.
See our latest analysis for Amicus Therapeutics
One thing we would like to bring into light with Amicus Therapeutics is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
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There are key fundamentals of Amicus 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 Amicus Therapeutics, take a look at Amicus Therapeutics' company page on Simply Wall St. We've also compiled a list of key factors you should further examine: