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Soligenix, Inc. (NASDAQ:SNGX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Soligenix, Inc., a late-stage biopharmaceutical company, focuses on developing and commercializing products to treat rare diseases in the United States. With the latest financial year loss of US$9.4m and a trailing-twelve-month loss of US$15m, the US$56m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Soligenix'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.
According to the 4 industry analysts covering Soligenix, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$7.5m in 2023. The company is therefore projected to breakeven around 2 years from now. 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 58% is expected, 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 Soligenix's upcoming projects, though, keep 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 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. The company has managed its capital judiciously, with debt making up 5.6% 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.
There are too many aspects of Soligenix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Soligenix's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Valuation: What is Soligenix 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 Soligenix 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 Soligenix’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.
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.
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