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BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX): Is Breakeven Near?

We feel now is a pretty good time to analyse BioCryst Pharmaceuticals, Inc.'s (NASDAQ:BCRX) business as it appears the company may be on the cusp of a considerable accomplishment. BioCryst Pharmaceuticals, Inc., a biotechnology company, discovers novel, oral, and small-molecule medicines. The US$1.9b market-cap company posted a loss in its most recent financial year of US$184m and a latest trailing-twelve-month loss of US$193m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on BioCryst Pharmaceuticals' 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.

Check out our latest analysis for BioCryst Pharmaceuticals

BioCryst Pharmaceuticals is bordering on breakeven, according to the 8 American Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$45m in 2025. Therefore, the company is expected to breakeven roughly 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 62% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving BioCryst Pharmaceuticals' growth isn’t the focus of this broad overview, though, take into account 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 issue worth mentioning. BioCryst Pharmaceuticals currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of BioCryst Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – BioCryst Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

  1. Valuation: What is BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on BioCryst Pharmaceuticals’s board and the CEO’s background.

  3. 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.

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