Breakeven On The Horizon For Tenax Therapeutics, Inc. (NASDAQ:TENX)
Tenax Therapeutics, Inc. (NASDAQ:TENX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tenax Therapeutics, Inc. develops and commercializes pharmaceutical products containing imatinib for the treatment of pulmonary arterial hypertension. The US$6.2m market-cap company’s loss lessened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.0m, as it approaches breakeven. As path to profitability is the topic on Tenax Therapeutics' 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 Tenax Therapeutics
According to the 2 industry analysts covering Tenax Therapeutics, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$35m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% year-on-year, on average, 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 Tenax Therapeutics' upcoming projects, but, 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. The company has managed its capital prudently, with debt making up 1.5% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Tenax Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Tenax Therapeutics' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:
Historical Track Record: What has Tenax Therapeutics' 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 Tenax Therapeutics' 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.
