Aptose Biosciences Inc.'s (TSE:APS) Path To Profitability
Aptose Biosciences Inc. (TSE:APS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aptose Biosciences Inc., a clinical-stage biotechnology company, discovers and develops personalized therapies addressing unmet medical needs in oncology primarily in the United States. The company’s loss has recently broadened since it announced a US$42m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$44m, moving it further away from breakeven. The most pressing concern for investors is Aptose Biosciences' path to profitability – when will it 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 Aptose Biosciences
According to the 6 industry analysts covering Aptose Biosciences, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$49m in 2025. The company is therefore projected to breakeven around 2 years from today. 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 33% 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.
Given this is a high-level overview, we won’t go into details of Aptose Biosciences' upcoming projects, though, 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. Aptose Biosciences 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:
There are key fundamentals of Aptose Biosciences 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 Aptose Biosciences, take a look at Aptose Biosciences' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
Historical Track Record: What has Aptose Biosciences' 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 Aptose Biosciences' 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
