Corbus Pharmaceuticals Holdings, Inc.’s (NASDAQ:CRBP): Corbus Pharmaceuticals Holdings, Inc., a clinical-stage pharmaceutical company, focuses on the development and commercialization of various therapeutics to treat rare, chronic, and serious inflammatory and fibrotic diseases. The company’s loss has recently broadened since it announced a -US$71.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$74.9m, moving it further away from breakeven. As path to profitability is the topic on CRBP’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for CRBP.
CRBP is bordering on breakeven, according to the 6 Biotechs analysts. They expect the company to post a final loss in 2022, before turning a profit of US$109m in 2023. CRBP is therefore projected to breakeven around 3 years from today. What rate will CRBP have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 72%, which is extremely buoyant. If this rate turns out to be too aggressive, CRBP may become profitable much later than analysts predict.
Underlying developments driving CRBP’s growth isn’t the focus of this broad overview, though, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate 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. CRBP has managed its capital prudently, with debt making up 1.9% of equity. This means that CRBP 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 CRBP to cover in one brief article, but the key fundamentals for the company can all be found in one place – CRBP’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should further research:
- Valuation: What is CRBP 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 CRBP 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 Corbus Pharmaceuticals Holdings’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.
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