ImmunityBio, Inc. (NASDAQ:IBRX): When Will It Breakeven?
We feel now is a pretty good time to analyse ImmunityBio, Inc.'s (NASDAQ:IBRX) business as it appears the company may be on the cusp of a considerable accomplishment. ImmunityBio, Inc., a clinical-stage biotechnology company, engages in developing therapies and vaccines that complement, harness, and amplify the immune system to defeat cancers and infectious diseases in the United States and Europe. The company’s loss has recently broadened since it announced a US$417m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$458m, moving it further away from breakeven. Many investors are wondering about the rate at which ImmunityBio will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for ImmunityBio
According to some industry analysts covering ImmunityBio, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$138m in 2026. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 63% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for ImmunityBio given that this is a high-level summary, but, take into account 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.
One thing we would like to bring into light with ImmunityBio is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of ImmunityBio 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 ImmunityBio, take a look at ImmunityBio's company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Historical Track Record: What has ImmunityBio'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 ImmunityBio'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.
