Galmed Pharmaceuticals Ltd’s (NASDAQ:GLMD): Galmed Pharmaceuticals Ltd., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of liver diseases. The US$70.54M market-cap company’s loss lessens since it announced a -US$16.95M bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$13.48M, as it approaches breakeven. As path to profitability is the topic on GLMD’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for GLMD’s growth and when analysts expect the company to become profitable.

Check out our latest analysis for Galmed Pharmaceuticals

GLMD is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$10.45M in 2022. So, GLMD is predicted to breakeven approximately 4 years from now. In order to meet this breakeven date, I calculated the rate at which GLMD must grow year-on-year. It turns out an average annual growth rate of -5.45% is expected,

Given this is a high-level overview, I won’t go into detail the detail of GLMD’s upcoming projects, but, keep in mind that typically biotechs, 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.

Before I wrap up, there’s one aspect worth mentioning. GLMD currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. GLMD currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on GLMD, so if you are interested in understanding the company at a deeper level, take a look at GLMD’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further examine:

1. Historical Track Record: What has GLMD’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 Galmed Pharmaceuticals’s board and the CEO’s back ground.

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.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.