Corbus Pharmaceuticals Holdings Inc’s (NASDAQ:CRBP): Corbus Pharmaceuticals Holdings, Inc., a clinical stage pharmaceutical company, focuses on the development and commercialization of various therapeutic products to treat inflammatory and fibrotic diseases. The company’s loss has recently broadened since it announced a -US$32.42M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$36.65M, moving it further away from breakeven. The most pressing concern for investors is CRBP’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for CRBP’s growth and when analysts expect the company to become profitable.
CRBP is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$82.17M in 2022. CRBP is therefore projected to breakeven around 4 years from today. How fast will CRBP 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 24.42% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, CRBP may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of CRBP’s upcoming projects, though, bear in mind that generally 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.
One thing I’d like to point out is that CRBP has managed its capital judiciously, with debt making up 0.32% of equity. This means that CRBP has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on CRBP, so if you are interested in understanding the company at a deeper level, take a look at CRBP’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should look at:
- Historical Track Record: What has CRBP’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 Corbus Pharmaceuticals Holdings’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.