iTeos Therapeutics, Inc. (NASDAQ:ITOS) Is About To Turn The Corner
iTeos Therapeutics, Inc. (NASDAQ:ITOS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Iteos Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of immuno-oncology therapeutics for patients. The company’s loss has recently broadened since it announced a US$43m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$67m, moving it further away from breakeven. As path to profitability is the topic on iTeos Therapeutics' 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 iTeos Therapeutics
According to the 5 industry analysts covering iTeos Therapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$123m in 2021. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of -52% is expected,
We're not going to go through company-specific developments for iTeos Therapeutics given that this is a high-level summary, though, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that iTeos Therapeutics 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. 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:
This article is not intended to be a comprehensive analysis on iTeos Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at iTeos Therapeutics' company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
Historical Track Record: What has iTeos Therapeutics' 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 iTeos Therapeutics' 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.
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.
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