Yahoo Finance When Will Esperion Therapeutics, Inc. (NASDAQ:ESPR) Turn A Profit?
Esperion Therapeutics, Inc. (NASDAQ:ESPR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Esperion Therapeutics, Inc., a pharmaceutical company, develops and commercializes medicines for the treatment of patients with elevated low density lipoprotein cholesterol. The company’s loss has recently broadened since it announced a US$234m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$239m, moving it further away from breakeven. The most pressing concern for investors is Esperion 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 Esperion Therapeutics
According to the 10 industry analysts covering Esperion Therapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$52m in 2025. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 70%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Esperion Therapeutics' growth isn’t the focus of this broad overview, however, bear in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. 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 issue worth mentioning. Esperion Therapeutics currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are key fundamentals of Esperion Therapeutics 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 Esperion Therapeutics, take a look at Esperion Therapeutics' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
Valuation: What is Esperion 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 Esperion 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 Esperion 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.
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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