Marinomed Biotech AG (VIE:MARI): Are Analysts Optimistic?

Marinomed Biotech AG (VIE:MARI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Marinomed Biotech AG, a biopharmaceutical company, develops therapeutic products for indications in virology and immunology in Austria, other European countries, and internationally. The €34m market-cap company posted a loss in its most recent financial year of €6.4m and a latest trailing-twelve-month loss of €6.2m shrinking the gap between loss and breakeven. The most pressing concern for investors is Marinomed Biotech's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Marinomed Biotech

Consensus from 2 of the Austrian Pharmaceuticals analysts is that Marinomed Biotech is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €2.1m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Marinomed Biotech's growth isn’t the focus of this broad overview, but, keep in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Marinomed Biotech 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Marinomed Biotech to cover in one brief article, but the key fundamentals for the company can all be found in one place – Marinomed Biotech's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is Marinomed Biotech 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 Marinomed Biotech is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Marinomed Biotech’s 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.