Analysts Expect Breakeven For Theravance Biopharma, Inc. (NASDAQ:TBPH) Before Long
Theravance Biopharma, Inc. (NASDAQ:TBPH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Theravance Biopharma, Inc., a biopharmaceutical company, discovers, develops, and commercializes respiratory medicines in the United States and Europe. The US$474m market-cap company posted a loss in its most recent financial year of US$93m and a latest trailing-twelve-month loss of US$61m shrinking the gap between loss and breakeven. The most pressing concern for investors is Theravance Biopharma's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Theravance Biopharma
Theravance Biopharma is bordering on breakeven, according to the 4 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$54m in 2026. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Theravance Biopharma given that this is a high-level summary, though, keep in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Theravance Biopharma has no debt on its balance sheet, which is rare for a loss-making pharma, 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.
Next Steps:
There are key fundamentals of Theravance Biopharma 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 Theravance Biopharma, take a look at Theravance Biopharma's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Valuation: What is Theravance Biopharma 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 Theravance Biopharma 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 Theravance Biopharma’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.
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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.
