Atossa Therapeutics, Inc. (NASDAQ:ATOS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Atossa Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops medicines in areas of significant unmet medical need in oncology in the United States. With the latest financial year loss of US$35m and a trailing-twelve-month loss of US$38m, the US$26m market-cap company amplified its loss by moving further away from its breakeven target. 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?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
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 2027, before generating positive profits of US$49m in 2028. The company is therefore projected to breakeven around 2 years from now. 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 62%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Atossa Therapeutics given that this is a high-level summary, however, take into account that generally biotechs, 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.
See our latest analysis for Atossa Therapeutics
Before we wrap up, there’s one aspect worth mentioning. Atossa Therapeutics currently has no debt on its balance sheet, which is rare for a loss-making 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.
This article is not intended to be a comprehensive analysis on Atossa Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Atossa Therapeutics' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:
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.