When Will BioInvent International AB (publ) (STO:BINV) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at BioInvent International AB (publ)'s (STO:BINV) future prospects. BioInvent International AB (publ), a clinical-stage company, discovers and develops immuno-modulatory antibodies for cancer therapy in Sweden, Europe, the United States, and internationally. With the latest financial year loss of kr333m and a trailing-twelve-month loss of kr335m, the kr1.7b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which BioInvent International 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.
Consensus from 3 of the Swedish Biotechs analysts is that BioInvent International is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of kr153m in 2027. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 44% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for BioInvent International given that this is a high-level summary, but, bear in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
View our latest analysis for BioInvent International
One thing we’d like to point out is that BioInvent International has no debt on its balance sheet, which is rare for a loss-making biotech, 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:
This article is not intended to be a comprehensive analysis on BioInvent International, so if you are interested in understanding the company at a deeper level, take a look at BioInvent International's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
- Historical Track Record: What has BioInvent International'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 BioInvent International'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.