CASI Pharmaceuticals, Inc.’s (NASDAQ:CASI): CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops therapeutics addressing cancer and other unmet medical needs in China. The company’s loss has recently broadened since it announced a -US$10.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$23.3m, moving it further away from breakeven. The most pressing concern for investors is CASI’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for CASI.
CASI is bordering on breakeven, according to the 3 Biotechs analysts. They expect the company to post a final loss in 2019, before turning a profit of US$3.2m in 2020. So, CASI is predicted to breakeven approximately a few months from now. What rate will CASI have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 87%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for CASI given that this is a high-level summary, but, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. CASI has managed its capital prudently, with debt making up 1.3% of equity. This means that CASI has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of CASI which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at CASI, take a look at CASI’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should look at:
- Historical Track Record: What has CASI’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 CASI 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.
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