AlzeCure Pharma AB (publ) (STO:ALZCUR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AlzeCure Pharma AB (publ) operates as a pharmaceutical company that develops small-molecule drug therapies for the treatment of severe diseases and conditions that affect the central nervous system. With the latest financial year loss of kr48m and a trailing-twelve-month loss of kr59m, the kr957m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is AlzeCure Pharma's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Expectations from some of the Swedish Pharmaceuticals analysts is that AlzeCure Pharma is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr109m in 2026. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 76%, 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 AlzeCure Pharma given that this is a high-level summary, though, bear in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
See our latest analysis for AlzeCure Pharma
One thing we’d like to point out is that AlzeCure Pharma has no debt on its balance sheet, which is rare for a loss-making pharma, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of AlzeCure Pharma 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 AlzeCure Pharma, take a look at AlzeCure Pharma's company page on Simply Wall St. We've also put together a list of key factors you should look at:
- Historical Track Record: What has AlzeCure Pharma'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on AlzeCure Pharma's board and the CEO’s background.
- 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.