BiVictriX Therapeutics Plc (LON:BVX) Is Expected To Breakeven In The Near Future

BiVictriX Therapeutics Plc (LON:BVX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BiVictriX Therapeutics Plc, a biotechnology company, engages in the development of cancer therapies in the United Kingdom. The UK£8.3m market-cap company posted a loss in its most recent financial year of UK£2.5m and a latest trailing-twelve-month loss of UK£2.3m shrinking the gap between loss and breakeven. The most pressing concern for investors is BiVictriX 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.

Check out our latest analysis for BiVictriX Therapeutics

According to some industry analysts covering BiVictriX Therapeutics, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£2.9m 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 64% is expected, which is rather optimistic! 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 BiVictriX Therapeutics given that this is a high-level summary, though, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. BiVictriX Therapeutics currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, 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 too many aspects of BiVictriX Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – BiVictriX Therapeutics' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Historical Track Record: What has BiVictriX Therapeutics' 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 BiVictriX Therapeutics' 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.