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When Will Abeona Therapeutics Inc (NASDAQ:ABEO) Breakeven?

Abeona Therapeutics Inc’s (NASDAQ:ABEO): Abeona Therapeutics Inc., a clinical-stage biopharmaceutical company, focuses on developing and delivering gene therapy products for severe and life-threatening rare diseases. On 31 December 2017, the US$857.17M market-cap posted a loss of -US$27.32M for its most recent financial year. The most pressing concern for investors is ABEO’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for ABEO, its year of breakeven and its implied growth rate.

Check out our latest analysis for Abeona Therapeutics

Expectation from analysts is ABEO is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$41.25M in 2021. So, ABEO is predicted to breakeven approximately 3 years from today. In order to meet this breakeven date, I calculated the rate at which ABEO must grow year-on-year. It turns out an average annual growth rate of 50.71% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqCM:ABEO Past Future Earnings Apr 13th 18
NasdaqCM:ABEO Past Future Earnings Apr 13th 18

I’m not going to go through company-specific developments for ABEO given that this is a high-level summary, however, keep 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.

One thing I’d like to point out is that ABEO 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. ABEO 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:

There are too many aspects of ABEO to cover in one brief article, but the key fundamentals for the company can all be found in one place – ABEO’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should look at:

  1. Historical Track Record: What has ABEO’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.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Abeona Therapeutics’s board and the CEO’s back ground.

  3. 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.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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