UroGen Pharma Ltd. (NASDAQ:URGN) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at UroGen Pharma Ltd.'s (NASDAQ:URGN) future prospects. UroGen Pharma Ltd., a biotechnology company, engages in the development and commercialization novel solutions for specialty cancers and urothelial diseases. The US$214m market-cap company’s loss lessened since it announced a US$111m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$109m, as it approaches breakeven. Many investors are wondering about the rate at which UroGen Pharma will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for UroGen Pharma
UroGen Pharma is bordering on breakeven, according to the 6 American Biotechs analysts. They expect the company to post a final loss in 2024, before turning a profit of US$19m in 2025. Therefore, the company is expected to breakeven roughly 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 56% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for UroGen Pharma given that this is a high-level summary, though, 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, 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. UroGen Pharma 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 UroGen Pharma 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 UroGen Pharma, take a look at UroGen Pharma's company page on Simply Wall St. We've also put together a list of key factors you should further examine:
Valuation: What is UroGen Pharma 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 UroGen Pharma 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 UroGen Pharma’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.
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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