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With the business potentially at an important milestone, we thought we'd take a closer look at CNS Pharmaceuticals, Inc.'s (NASDAQ:CNSP) future prospects. CNS Pharmaceuticals, Inc., a clinical pharmaceutical company, engages in the development of anti-cancer drug candidates for the treatment of brain and central nervous system tumors. The US$3.9m market-cap company posted a loss in its most recent financial year of US$19m and a latest trailing-twelve-month loss of US$17m shrinking the gap between loss and breakeven. The most pressing concern for investors is CNS Pharmaceuticals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
CNS Pharmaceuticals is bordering on breakeven, according to some American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$8.9m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow -7.5% year-on-year, on average,
Underlying developments driving CNS Pharmaceuticals' growth isn’t the focus of this broad overview, but, take into account that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
View our latest analysis for CNS Pharmaceuticals
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.9% 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 key fundamentals of CNS 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 CNS Pharmaceuticals, take a look at CNS Pharmaceuticals' company page on Simply Wall St. We've also put together a list of important factors you should further examine:
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Historical Track Record: What has CNS Pharmaceuticals' 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.
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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 CNS Pharmaceuticals' 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.