Analysts Are Optimistic We'll See A Profit From Sunshine Biopharma, Inc. (NASDAQ:SBFM)
Sunshine Biopharma, Inc. (NASDAQ:SBFM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sunshine Biopharma, Inc., a pharmaceutical company, focuses on the research and development of life-saving medicines in various therapeutic areas, including oncology and antivirals. The US$5.9m market-cap company posted a loss in its most recent financial year of US$27m and a latest trailing-twelve-month loss of US$27m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Sunshine Biopharma will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Sunshine Biopharma
Expectations from some of the American Biotechs analysts is that Sunshine Biopharma is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$2.5m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 127% is expected, 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 Sunshine Biopharma given that this is a high-level summary, however, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company 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 aspect worth mentioning. Sunshine Biopharma 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 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:
This article is not intended to be a comprehensive analysis on Sunshine Biopharma, so if you are interested in understanding the company at a deeper level, take a look at Sunshine Biopharma's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Historical Track Record: What has Sunshine Biopharma's 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 Sunshine 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.
