When Can We Expect A Profit From Alterity Therapeutics Limited (ASX:ATH)?

With the business potentially at an important milestone, we thought we'd take a closer look at Alterity Therapeutics Limited's (ASX:ATH) future prospects. Alterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer’s disease, Huntington disease, Parkinson’s disease, and other neurological disorders in Australia. The AU$109m market-cap company announced a latest loss of AU$12m on 30 June 2025 for its most recent financial year result. As path to profitability is the topic on Alterity Therapeutics' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Alterity Therapeutics is bordering on breakeven, according to the 2 Australian Biotechs analysts. They expect the company to post a final loss in 2027, before turning a profit of AU$9.5m in 2028. Therefore, the company is expected to breakeven roughly 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 25%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Alterity Therapeutics given that this is a high-level summary, though, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for Alterity Therapeutics

One thing we’d like to point out is that Alterity Therapeutics has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Alterity Therapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Alterity Therapeutics, take a look at Alterity Therapeutics' company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Valuation: What is Alterity Therapeutics 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 Alterity Therapeutics 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 Alterity Therapeutics’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.