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Altimmune, Inc. (NASDAQ:ALT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Altimmune, Inc., a clinical stage biopharmaceutical company, focused developing treatments for liver disease, immune modulating therapies, and vaccines. The company’s loss has recently broadened since it announced a US$21m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$43m, moving it further away from breakeven. The most pressing concern for investors is Altimmune's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 5 of the American Biotechs analysts is that Altimmune is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$44m in 2022. So, the company is predicted to breakeven just over a year from now. 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 64% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Altimmune's upcoming projects, though, take into account that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that Altimmune 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.
This article is not intended to be a comprehensive analysis on Altimmune, so if you are interested in understanding the company at a deeper level, take a look at Altimmune's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Valuation: What is Altimmune 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 Altimmune is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Altimmune’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.
This article by Simply Wall St is general in nature. 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.
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