U.S. markets open in 1 hour 50 minutes
  • S&P Futures

    4,163.00
    +16.25 (+0.39%)
     
  • Dow Futures

    32,873.00
    +116.00 (+0.35%)
     
  • Nasdaq Futures

    13,296.00
    +67.25 (+0.51%)
     
  • Russell 2000 Futures

    1,929.80
    +8.00 (+0.42%)
     
  • Crude Oil

    87.67
    -1.34 (-1.51%)
     
  • Gold

    1,799.10
    +7.90 (+0.44%)
     
  • Silver

    20.24
    +0.40 (+2.01%)
     
  • EUR/USD

    1.0190
    +0.0002 (+0.02%)
     
  • 10-Yr Bond

    2.8400
    0.0000 (0.00%)
     
  • Vix

    21.55
    +0.11 (+0.51%)
     
  • GBP/USD

    1.2095
    +0.0025 (+0.20%)
     
  • USD/JPY

    134.8330
    -0.1370 (-0.10%)
     
  • BTC-USD

    24,068.19
    +1,079.44 (+4.70%)
     
  • CMC Crypto 200

    560.25
    +25.02 (+4.67%)
     
  • FTSE 100

    7,475.42
    +35.68 (+0.48%)
     
  • Nikkei 225

    28,249.24
    +73.37 (+0.26%)
     

When Will AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) Breakeven?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AcelRx Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of acute pain. With the latest financial year loss of US$40m and a trailing-twelve-month loss of US$36m, the US$63m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which AcelRx Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for AcelRx Pharmaceuticals

According to the 2 industry analysts covering AcelRx Pharmaceuticals, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$61m in 2024. 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 61%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of AcelRx Pharmaceuticals' upcoming projects, though, take into account that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one issue worth mentioning. AcelRx Pharmaceuticals 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of AcelRx Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – AcelRx Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

  1. Valuation: What is AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals is currently mispriced by the market.

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

  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.

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.