Analysts Expect Breakeven For Mithra Pharmaceuticals SA (EBR:MITRA) Before Long

We feel now is a pretty good time to analyse Mithra Pharmaceuticals SA's (EBR:MITRA) business as it appears the company may be on the cusp of a considerable accomplishment. Mithra Pharmaceuticals SA develops, manufactures, and markets complex therapeutics in the areas of contraception, menopause, and hormone-dependent cancers in Belgium, Europe and internationally. On 31 December 2023, the €19m market-cap company posted a loss of €174m for its most recent financial year. As path to profitability is the topic on Mithra Pharmaceuticals' 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.

View our latest analysis for Mithra Pharmaceuticals

Mithra Pharmaceuticals is bordering on breakeven, according to the 2 Belgian Pharmaceuticals analysts. They expect the company to post a final loss in 2025, before turning a profit of €44m in 2026. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 105% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Mithra Pharmaceuticals' upcoming projects, though, keep 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.

One thing we would like to bring into light with Mithra Pharmaceuticals is it 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:

This article is not intended to be a comprehensive analysis on Mithra Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at Mithra Pharmaceuticals' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is Mithra Pharmaceuticals 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 Mithra Pharmaceuticals 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 Mithra Pharmaceuticals’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.