ProQR Therapeutics N.V. (NASDAQ:PRQR) Could Be Less Than A Year Away From Profitability
We feel now is a pretty good time to analyse ProQR Therapeutics N.V.'s (NASDAQ:PRQR) business as it appears the company may be on the cusp of a considerable accomplishment. ProQR Therapeutics N.V., a biotechnology company, focuses on the discovery and development of novel therapeutic medicines. On 31 December 2022, the US$141m market-cap company posted a loss of €65m for its most recent financial year. The most pressing concern for investors is ProQR Therapeutics' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for ProQR Therapeutics
Consensus from 4 of the American Biotechs analysts is that ProQR Therapeutics is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of €6.7m in 2023. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow -0.08% year-on-year, on average,
We're not going to go through company-specific developments for ProQR Therapeutics given that this is a high-level summary, though, bear in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 10% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of ProQR Therapeutics 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 ProQR Therapeutics, take a look at ProQR Therapeutics' company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Historical Track Record: What has ProQR 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 ProQR 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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