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Tissue Regenix Group plc (LON:TRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tissue Regenix Group plc, a medical technology company, develops and commercializes platform technologies in the field of bone graft substitutes and soft tissue in the United States and internationally. The UK£43m market-cap company posted a loss in its most recent financial year of US$1.7m and a latest trailing-twelve-month loss of US$1.1m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Tissue Regenix Group will turn a profit, with the big question being “when will the company 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 Tissue Regenix Group

Consensus from 2 of the British Biotechs analysts is that Tissue Regenix Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$621k in 2025. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 166% year-on-year, on average, 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 Tissue Regenix Group's growth isn’t the focus of this broad overview, but, 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 35% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Tissue Regenix Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tissue Regenix Group's company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Historical Track Record: What has Tissue Regenix Group's 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tissue Regenix Group's board and the CEO’s background.

3. 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.