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BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BioCryst Pharmaceuticals, Inc., a biotechnology company, develops oral small-molecule and protein therapeutics to treat rare diseases. The US$1.6b market-cap company’s loss lessened since it announced a US$227m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$124m, as it approaches breakeven. Many investors are wondering about the rate at which BioCryst Pharmaceuticals will turn a profit, with the big question being “when will the company 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 BioCryst Pharmaceuticals
Consensus from 10 of the American Biotechs analysts is that BioCryst Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$74m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 73% 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.
Given this is a high-level overview, we won’t go into details of BioCryst Pharmaceuticals' upcoming projects, however, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 issue worth mentioning. BioCryst Pharmaceuticals currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
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There are key fundamentals of BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals, take a look at BioCryst Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of essential factors you should further research: