When Will 2seventy bio, Inc. (NASDAQ:TSVT) Turn A Profit?
With the business potentially at an important milestone, we thought we'd take a closer look at 2seventy bio, Inc.'s (NASDAQ:TSVT) future prospects. 2seventy bio, Inc., a cell and gene therapy company, focuses on the research, development, and commercialization of treatments for cancer in the United States. On 31 December 2023, the US$274m market-cap company posted a loss of US$218m for its most recent financial year. Many investors are wondering about the rate at which 2seventy bio 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.
See our latest analysis for 2seventy bio
2seventy bio is bordering on breakeven, according to the 7 American Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$8.4m in 2025. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 72% is expected, 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 2seventy bio's growth isn’t the focus of this broad overview, but, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. 2seventy bio currently 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:
This article is not intended to be a comprehensive analysis on 2seventy bio, so if you are interested in understanding the company at a deeper level, take a look at 2seventy bio's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Historical Track Record: What has 2seventy bio'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 2seventy bio'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.
