Yahoo Finance Biofrontera Inc. (NASDAQ:BFRI): Are Analysts Optimistic?
With the business potentially at an important milestone, we thought we'd take a closer look at Biofrontera Inc.'s (NASDAQ:BFRI) future prospects. Biofrontera Inc., a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The US$27m market-cap company’s loss lessened since it announced a US$38m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$26m, as it approaches breakeven. As path to profitability is the topic on Biofrontera's investors mind, we've decided to gauge market sentiment. 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 Biofrontera
According to the 2 industry analysts covering Biofrontera, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$16m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. 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 80% year-on-year, on average, which is rather optimistic! 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 Biofrontera's 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.
Before we wrap up, there’s one aspect worth mentioning. Biofrontera currently has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which usually has a high level of 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 Biofrontera 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 Biofrontera, take a look at Biofrontera's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
Historical Track Record: What has Biofrontera'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 Biofrontera'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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