Santhera Pharmaceuticals Holding AG (VTX:SANN) Is About To Turn The Corner
We feel now is a pretty good time to analyse Santhera Pharmaceuticals Holding AG's (VTX:SANN) business as it appears the company may be on the cusp of a considerable accomplishment. Santhera Pharmaceuticals Holding AG, a specialty pharmaceutical company, together with its subsidiaries, develops and commercializes medicines for rare neuromuscular and pulmonary diseases with high unmet medical need in the European Union and internationally. The CHF98m market-cap company announced a latest loss of CHF71m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Santhera Pharmaceuticals Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Santhera Pharmaceuticals Holding
According to the 2 industry analysts covering Santhera Pharmaceuticals Holding, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of CHF49m in 2023. The company is therefore projected to breakeven around a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 48%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Santhera Pharmaceuticals Holding's upcoming projects, however, take into account that typically 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.
One thing we would like to bring into light with Santhera Pharmaceuticals Holding 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 Santhera Pharmaceuticals Holding 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 Santhera Pharmaceuticals Holding, take a look at Santhera Pharmaceuticals Holding's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
Valuation: What is Santhera Pharmaceuticals Holding 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 Santhera Pharmaceuticals Holding 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 Santhera Pharmaceuticals Holding’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.
