Theralase Technologies Inc. (CVE:TLT): When Will It Breakeven?

We feel now is a pretty good time to analyse Theralase Technologies Inc.'s (CVE:TLT) business as it appears the company may be on the cusp of a considerable accomplishment. Theralase Technologies Inc., a clinical stage pharmaceutical company, engages in the research and development of light activated photo dynamic compounds (PDCs) and their associated drug formulations to treat cancers, bacteria, and viruses in Canada, the United States, and internationally. The CA$47m market-cap company’s loss lessened since it announced a CA$4.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$4.4m, as it approaches breakeven. The most pressing concern for investors is Theralase Technologies' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Theralase Technologies

Expectations from some of the Canadian Medical Equipment analysts is that Theralase Technologies is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of CA$6.0m in 2026. Therefore, the company is expected to breakeven roughly 2 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 69%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Theralase Technologies' growth isn’t the focus of this broad overview, however, keep in mind that typically 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 aspect worth mentioning. Theralase Technologies currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Theralase Technologies 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 Theralase Technologies, take a look at Theralase Technologies' company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Historical Track Record: What has Theralase Technologies' 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 Theralase Technologies' 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com