Loss-Making OSE Immunotherapeutics SA (EPA:OSE) Set To Breakeven

With the business potentially at an important milestone, we thought we'd take a closer look at OSE Immunotherapeutics SA's (EPA:OSE) future prospects. OSE Immunotherapeutics SA, a clinical-stage biotechnology company, develops immunotherapies in the areas of immune-oncology and immune-inflammation in France and internationally. On 31 December 2023, the €192m market-cap company posted a loss of €23m for its most recent financial year. Many investors are wondering about the rate at which OSE Immunotherapeutics will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for OSE Immunotherapeutics

Consensus from 3 of the French Biotechs analysts is that OSE Immunotherapeutics is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of €74m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 5.9% year-on-year, on average, which is a somewhat cautious outlook. Should the business grow at a faster rate, it will become profitable at an earlier date than expected.

Underlying developments driving OSE Immunotherapeutics' growth isn’t the focus of this broad overview, however, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with OSE Immunotherapeutics is its debt-to-equity ratio of 182%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of OSE Immunotherapeutics 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 OSE Immunotherapeutics, take a look at OSE Immunotherapeutics' company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Historical Track Record: What has OSE Immunotherapeutics' 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 OSE Immunotherapeutics' 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.