Antibe Therapeutics Inc.'s (TSE:ATE) Profit Outlook

Antibe Therapeutics Inc. (TSE:ATE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Antibe Therapeutics Inc., a pharmaceutical development company, originates, develops, and out-licenses patent novel therapeutics and medical devices in the areas of pain, inflammation and regenerative medicine in Canada, Europe, the United States, and internationally. The company’s loss has recently broadened since it announced a CA$19m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$24m, moving it further away from breakeven. The most pressing concern for investors is Antibe Therapeutics' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Antibe Therapeutics

According to the 5 industry analysts covering Antibe Therapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$50m in 2024. The company is therefore projected to breakeven around 3 years from today. 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 62%, 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 Antibe Therapeutics given that this is a high-level summary, however, keep in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, 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. Antibe Therapeutics currently has no debt on its balance sheet, which is rare for a loss-making pharma, which usually has a high level of 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 Antibe 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 Antibe Therapeutics, take a look at Antibe Therapeutics' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is Antibe 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 Antibe 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 Antibe 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. 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.
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