Vical Incorporated’s (NASDAQ:VICL): Vical Incorporated engages in the research and development of biopharmaceutical products based on its DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. The company’s loss has recently broadened since it announced a -US$12.96m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$16.41m, moving it further away from breakeven. The most pressing concern for investors is VICL’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for VICL.
According to the industry analysts covering VICL, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . VICL is therefore projected to breakeven around a few months from now. How fast will VICL have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow -34.38% year-on-year, on average,
Underlying developments driving VICL’s growth isn’t the focus of this broad overview, but, take into account that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 I wrap up, there’s one aspect worth mentioning. VICL currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. VICL currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on VICL, so if you are interested in understanding the company at a deeper level, take a look at VICL’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further examine:
- Historical Track Record: What has VICL’s 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 Vical’s board and the CEO’s back ground.
- 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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.