Bio-Path Holdings, Inc.'s (NASDAQ:BPTH) Profit Outlook
With the business potentially at an important milestone, we thought we'd take a closer look at Bio-Path Holdings, Inc.'s (NASDAQ:BPTH) future prospects. Bio-Path Holdings, Inc. operates as a clinical and preclinical stage oncology focused RNAi nano particle drug development company in the United States. The company’s loss has recently broadened since it announced a US$14m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$17m, moving it further away from breakeven. As path to profitability is the topic on Bio-Path Holdings' investors mind, we've decided to gauge market sentiment. 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 Bio-Path Holdings
According to some industry analysts covering Bio-Path Holdings, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$3.1m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 71%, which is rather optimistic! 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 Bio-Path Holdings given that this is a high-level summary, but, take into account that by and large 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.
One thing we’d like to point out is that Bio-Path Holdings has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of 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:
This article is not intended to be a comprehensive analysis on Bio-Path Holdings, so if you are interested in understanding the company at a deeper level, take a look at Bio-Path Holdings' company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Historical Track Record: What has Bio-Path Holdings' 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 Bio-Path Holdings' 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.
