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With the business potentially at an important milestone, we thought we'd take a closer look at BeiGene, Ltd.'s (NASDAQ:ONC) future prospects. BeiGene, Ltd., an oncology company, engages in discovering and developing various treatments for cancer patients in the United States, China, Europe, and internationally. With the latest financial year loss of CN¥6.3b and a trailing-twelve-month loss of CN¥6.0b, the US$22b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is BeiGene's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for BeiGene

Consensus from 31 of the American Biotechs analysts is that BeiGene is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of CN¥2.8b in 2026. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 65%, which is rather optimistic! 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 BeiGene given that this is a high-level summary, however, 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 30% 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 BeiGene to cover in one brief article, but the key fundamentals for the company can all be found in one place – BeiGene's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

1. Valuation: What is BeiGene 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 BeiGene is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on BeiGene’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.