Analysts Expect Breakeven For UroGen Pharma Ltd (NASDAQ:URGN)
UroGen Pharma Ltd’s (NASDAQ:URGN): UroGen Pharma Ltd., a clinical stage biopharmaceutical company, focuses on developing novel therapies for urological pathologies. The US$922.25M market-cap company announced a latest loss of -US$20.82M on 31 December 2017 for its most recent financial year result. Many investors are wondering the rate at which URGN will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for URGN’s growth and when analysts expect the company to become profitable.
View our latest analysis for UroGen Pharma
According to the industry analysts covering URGN, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$21.77M in 2022. So, URGN is predicted to breakeven approximately 4 years from now. In order to meet this breakeven date, I calculated the rate at which URGN must grow year-on-year. It turns out an average annual growth rate of 24.70% is expected, which is rather optimistic! If this rate turns out to be too aggressive, URGN may become profitable much later than analysts predict.
Underlying developments driving URGN’s growth isn’t the focus of this broad overview, however, bear in mind that typically 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.
Before I wrap up, there’s one aspect worth mentioning. URGN 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. This means that URGN 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:
This article is not intended to be a comprehensive analysis on URGN, so if you are interested in understanding the company at a deeper level, take a look at URGN’s company page on Simply Wall St. I’ve also put together a list of essential factors you should further research:
Valuation: What is URGN 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 URGN 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 UroGen Pharma’s board and the CEO’s back ground.
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.
