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Protalix BioTherapeutics, Inc. (NYSEMKT:PLX) Is About To Turn The Corner

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Simply Wall St
·3 min read
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Protalix BioTherapeutics, Inc. (NYSEMKT:PLX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Protalix BioTherapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in Israel, Brazil, rest of Latin America, and internationally. The US$226m market-cap company’s loss lessened since it announced a US$18m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$6.6m, as it approaches breakeven. Many investors are wondering about the rate at which Protalix BioTherapeutics 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 Protalix BioTherapeutics

According to the 2 industry analysts covering Protalix BioTherapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$612k 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 139% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Protalix BioTherapeutics' upcoming projects, but, bear in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Protalix BioTherapeutics is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Protalix BioTherapeutics 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 Protalix BioTherapeutics, take a look at Protalix BioTherapeutics' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

  1. Historical Track Record: What has Protalix BioTherapeutics' 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.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Protalix BioTherapeutics' board and the CEO’s background.

  3. 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.