Analysts Expect Breakeven For Phio Pharmaceuticals Corp. (NASDAQ:PHIO) Before Long
Phio Pharmaceuticals Corp. (NASDAQ:PHIO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Phio Pharmaceuticals Corp., a biotechnology company, develops immuno-oncology therapeutics in the United States. The company’s loss has recently broadened since it announced a US$8.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$12m, moving it further away from breakeven. The most pressing concern for investors is Phio Pharmaceuticals' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Phio Pharmaceuticals
Phio Pharmaceuticals is bordering on breakeven, according to some American Biotechs analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$26m in 2022. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 191% year-on-year, on average, which is extremely buoyant. 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 Phio Pharmaceuticals 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. Phio Pharmaceuticals currently has no debt on its balance sheet, which is rare for a loss-making 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:
There are key fundamentals of Phio Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Phio Pharmaceuticals, take a look at Phio Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
Historical Track Record: What has Phio Pharmaceuticals' 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 Phio Pharmaceuticals' 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.
