When Can We Expect A Profit From Daré Bioscience, Inc. (NASDAQ:DARE)?
We feel now is a pretty good time to analyse Daré Bioscience, Inc.'s (NASDAQ:DARE) business as it appears the company may be on the cusp of a considerable accomplishment. Daré Bioscience, Inc., a clinical-stage biopharmaceutical company, focuses on developing and marketing products for women’s health in the United States. On 31 December 2021, the US$146m market-cap company posted a loss of US$39m for its most recent financial year. Many investors are wondering about the rate at which Daré Bioscience will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Daré Bioscience
Consensus from 4 of the American Pharmaceuticals analysts is that Daré Bioscience is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$20m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, 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 Daré Bioscience's upcoming projects, but, take into account that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. 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. Daré Bioscience currently has no debt on its balance sheet, which is rare for a loss-making pharma, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Daré Bioscience to cover in one brief article, but the key fundamentals for the company can all be found in one place – Daré Bioscience's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
Historical Track Record: What has Daré Bioscience'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 Daré Bioscience's 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.
