Loss-Making InflaRx N.V. (NASDAQ:IFRX) Expected To Breakeven In The Medium-Term
InflaRx N.V. (NASDAQ:IFRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. InflaRx N.V., a clinical-stage biopharmaceutical company, discovers and develops inhibitors using C5a technology in Germany and the United States. The company’s loss has recently broadened since it announced a €29m loss in the full financial year, compared to the latest trailing-twelve-month loss of €35m, moving it further away from breakeven. As path to profitability is the topic on InflaRx's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for InflaRx
Consensus from 4 of the American Biotechs analysts is that InflaRx is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of €4.7m in 2024. Therefore, the company is expected to breakeven just over a year from today. 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 65%, 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 InflaRx's upcoming projects, however, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. InflaRx currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of 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 too many aspects of InflaRx to cover in one brief article, but the key fundamentals for the company can all be found in one place – InflaRx's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Valuation: What is InflaRx worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether InflaRx is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on InflaRx’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.
