When Can We Expect A Profit From Bio-Path Holdings, Inc. (NASDAQ:BPTH)?
We feel now is a pretty good time to analyse Bio-Path Holdings, Inc.'s (NASDAQ:BPTH) business as it appears the company may be on the cusp of a considerable accomplishment. Bio-Path Holdings, Inc. operates as a clinical and preclinical stage oncology focused RNAi nano particle drug development company in the United States. The company’s loss has recently broadened since it announced a US$14m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$17m, moving it further away from breakeven. As path to profitability is the topic on Bio-Path Holdings' 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.
Check out our latest analysis for Bio-Path Holdings
Expectations from some of the American Biotechs analysts is that Bio-Path Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$24m in 2026. Therefore, the company is expected to breakeven roughly 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 56% year-on-year, on average, which signals high confidence from analysts. 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, we won’t go into details of Bio-Path Holdings' upcoming projects, but, keep in mind that generally 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.
Before we wrap up, there’s one aspect worth mentioning. Bio-Path Holdings currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Bio-Path Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bio-Path Holdings, take a look at Bio-Path Holdings' company page on Simply Wall St. We've also put together a list of essential factors you should look at:
Historical Track Record: What has Bio-Path Holdings' 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 Bio-Path Holdings' 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.
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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.
