Hyloris Pharmaceuticals SA's (EBR:HYL) Path To Profitability

Hyloris Pharmaceuticals SA (EBR:HYL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hyloris Pharmaceuticals SA engages in the research, development, and manufacture of pharmaceutical products to address unmet medical needs. The €188m market-cap company announced a latest loss of €6.3m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Hyloris Pharmaceuticals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 2 of the Belgian Pharmaceuticals analysts is that Hyloris Pharmaceuticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of €45m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 46% year-on-year, on average, 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 Hyloris Pharmaceuticals' growth isn’t the focus of this broad overview, though, take into account that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for Hyloris Pharmaceuticals

Before we wrap up, there’s one aspect worth mentioning. Hyloris Pharmaceuticals currently has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, 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:

This article is not intended to be a comprehensive analysis on Hyloris Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at Hyloris Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Historical Track Record: What has Hyloris Pharmaceuticals' 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 Hyloris Pharmaceuticals' 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.