We feel now is a pretty good time to analyse Antibe Therapeutics Inc.'s (TSE:ATE) business as it appears the company may be on the cusp of a considerable accomplishment. Antibe Therapeutics Inc., a pharmaceutical development company, originates, develops, and out-licenses patent novel therapeutics and medical devices in the areas of pain, inflammation and regenerative medicine in Canada, Europe, the United States, and internationally. The CA$158m market-cap company posted a loss in its most recent financial year of CA$19m and a latest trailing-twelve-month loss of CA$24m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Antibe Therapeutics' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Antibe Therapeutics
Consensus from 4 of the Canadian Pharmaceuticals analysts is that Antibe Therapeutics is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$50m in 2024. So, the company is predicted to breakeven approximately 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
earnings-per-share-growth Given this is a high-level overview, we won’t go into details of Antibe Therapeutics' upcoming projects, though, keep in mind that by and large 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.
One thing we’d like to point out is that Antibe Therapeutics has no debt on its balance sheet, which is rare for a loss-making pharma, 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:
This article is not intended to be a comprehensive analysis on Antibe Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Antibe Therapeutics' company page on Simply Wall St. We've also put together a list of important aspects you should further research:
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Valuation: What is Antibe Therapeutics 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 Antibe Therapeutics 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 Antibe Therapeutics’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.