Anthera Pharmaceuticals Inc’s (NASDAQ:ANTH): Anthera Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of medicines for patients with unmet medical needs. The US$7.44M market-cap company announced a latest loss of -US$29.38M on 31 December 2017 for its most recent financial year result. Many investors are wondering the rate at which ANTH will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for ANTH.
Expectation from analysts is ANTH is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$2.67M in 2022. ANTH is therefore projected to breakeven around 4 years from now. How fast will ANTH have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 20.55% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into detail the detail of ANTH’s upcoming projects, though, 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 I would like to bring into light with ANTH is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
This article is not intended to be a comprehensive analysis on ANTH, so if you are interested in understanding the company at a deeper level, take a look at ANTH’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further examine:
- Historical Track Record: What has ANTH’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 Anthera Pharmaceuticals’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.