We Might See A Profit From Marinomed Biotech AG (VIE:MARI) Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Marinomed Biotech AG's (VIE:MARI) future prospects. Marinomed Biotech AG, a biopharmaceutical company, develops therapeutic products for indications in virology and immunology in Austria, other European countries, and internationally. With the latest financial year loss of €6.8m and a trailing-twelve-month loss of €6.9m, the €16m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Marinomed Biotech 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 Marinomed Biotech

According to the 2 industry analysts covering Marinomed Biotech, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €470k in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 58%, which signals high confidence from analysts. 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 Marinomed Biotech given that this is a high-level summary, though, bear in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business 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. 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

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 put together a list of relevant factors you should further research:

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.