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Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. The US$865m market-cap company announced a latest loss of US$136m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Mirum Pharmaceuticals' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Mirum Pharmaceuticals
Consensus from 7 of the American Biotechs analysts is that Mirum Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$54m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 60% is expected, 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 Mirum Pharmaceuticals given that this is a high-level summary, but, bear in mind 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.
One thing we’d like to point out is that Mirum Pharmaceuticals has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. The company 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:
There are key fundamentals of Mirum 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 Mirum Pharmaceuticals, take a look at Mirum Pharmaceuticals' company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:
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Valuation: What is Mirum Pharmaceuticals 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 Mirum Pharmaceuticals is currently mispriced by the market.
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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 Mirum Pharmaceuticals’s 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.