Yahoo Finance Atossa Therapeutics, Inc. (NASDAQ:ATOS): Is Breakeven Near?
We feel now is a pretty good time to analyse Atossa Therapeutics, Inc.'s (NASDAQ:ATOS) business as it appears the company may be on the cusp of a considerable accomplishment. Atossa Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing medicines in the areas of unmet medical need in oncology. The company’s loss has recently broadened since it announced a US$27m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$30m, moving it further away from breakeven. Many investors are wondering about the rate at which Atossa Therapeutics will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Atossa Therapeutics
According to the 3 industry analysts covering Atossa Therapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$63m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? 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. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Atossa Therapeutics' upcoming projects, but, take into account that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company 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 Atossa Therapeutics has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high 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 too many aspects of Atossa Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Atossa Therapeutics' company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
Valuation: What is Atossa 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 Atossa Therapeutics is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Atossa Therapeutics’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.
