When Will Coherus BioSciences, Inc. (NASDAQ:CHRS) Breakeven?

We feel now is a pretty good time to analyse Coherus BioSciences, Inc.'s (NASDAQ:CHRS) business as it appears the company may be on the cusp of a considerable accomplishment. Coherus BioSciences, Inc., a biopharmaceutical company, focuses on the research, development, and commercialization of cancer treatments primarily in the United States. The US$244m market-cap company announced a latest loss of US$238m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Coherus BioSciences will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Coherus BioSciences

Consensus from 6 of the American Biotechs analysts is that Coherus BioSciences is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$46m in 2026. So, the company is predicted to breakeven approximately 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 80% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Coherus BioSciences' growth isn’t the focus of this broad overview, however, keep 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 Coherus BioSciences is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of Coherus BioSciences to cover in one brief article, but the key fundamentals for the company can all be found in one place – Coherus BioSciences' company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Historical Track Record: What has Coherus BioSciences' 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 Coherus BioSciences' 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.

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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.