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When Will CASI Pharmaceuticals, Inc. (NASDAQ:CASI) Turn A Profit?

Simply Wall St

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.

Check out our latest analysis for CASI Pharmaceuticals

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.

NasdaqCM:CASI Past and Future Earnings, February 26th 2019

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.

Next Steps:

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:

  1. 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.
  2. 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.
  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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.