When Will Acticor Biotech SAS (EPA:ALACT) Breakeven?

Acticor Biotech SAS (EPA:ALACT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Acticor Biotech SAS operates as a clinical stage biopharmaceutical company that develops drugs for the treatment for acute thrombotic diseases. The €11m market-cap company posted a loss in its most recent financial year of €16m and a latest trailing-twelve-month loss of €19m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Acticor Biotech SAS' 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.

View 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 2024, before generating positive profits of €16m in 2025. Therefore, the company is expected to breakeven just over a year 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 82% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than 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 by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Acticor Biotech SAS is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Acticor Biotech SAS to cover in one brief article, but the key fundamentals for the company can all be found in one place – Acticor Biotech SAS' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is Acticor Biotech SAS 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 Acticor Biotech SAS 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 Acticor Biotech SAS’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.

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