When Will Panbela Therapeutics, Inc. (NASDAQ:PBLA) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Panbela Therapeutics, Inc.'s (NASDAQ:PBLA) future prospects. Panbela Therapeutics, Inc., a clinical-stage biopharmaceutical company, together with its subsidiaries, focuses on developing disruptive therapeutics for the treatment of patients with cancer. The US$4.2m market-cap company announced a latest loss of US$35m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Panbela Therapeutics' 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.
View our latest analysis for Panbela Therapeutics
According to the 2 industry analysts covering Panbela Therapeutics, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$7.0m in 2025. The company is therefore projected to breakeven around 2 years from today. 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 67% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Panbela Therapeutics' growth isn’t the focus of this broad overview, but, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 issue worth mentioning. Panbela Therapeutics 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 too many aspects of Panbela Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Panbela Therapeutics' company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:
Historical Track Record: What has Panbela 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 Panbela 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.
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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.
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