Acticor Biotech SAS (EPA:ALACT) Could Be Less Than A Year Away From Profitability

We feel now is a pretty good time to analyse Acticor Biotech SAS' (EPA:ALACT) business as it appears the company may be on the cusp of a considerable accomplishment. Acticor Biotech SAS operates as a clinical stage biopharmaceutical company that develops drugs for the treatment for acute thrombotic diseases. The €70m market-cap company announced a latest loss of €16m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Acticor Biotech SAS' 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.

See our latest analysis for Acticor Biotech SAS

Acticor Biotech SAS is bordering on breakeven, according to some French Biotechs analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of €925k in 2023. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of -4.7% is expected,

We're not going to go through company-specific developments for Acticor Biotech SAS given that this is a high-level summary, but, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Acticor Biotech SAS 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Historical Track Record: What has Acticor Biotech SAS' 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 Acticor Biotech SAS' 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.