Loss-Making OneSource Specialty Pharma Limited (NSE:ONESOURCE) Set To Breakeven

We feel now is a pretty good time to analyse OneSource Specialty Pharma Limited's (NSE:ONESOURCE) business as it appears the company may be on the cusp of a considerable accomplishment. OneSource Specialty Pharma Limited, a biopharmaceutical company, engages in the research, development, manufacture, and commercialization of biological drug products in various injectable formats in India, Ireland, the United States, and internationally. With the latest financial year loss of ₹173m and a trailing-twelve-month loss of ₹119m, the ₹210b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is OneSource Specialty Pharma's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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According to the 4 industry analysts covering OneSource Specialty Pharma, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of ₹3.0b in 2026. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 72%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving OneSource Specialty Pharma's growth isn’t the focus of this broad overview, however, keep in mind that by and large a life science company has lumpy cash flows which are contingent on the product and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for OneSource Specialty Pharma

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 16% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on OneSource Specialty Pharma, so if you are interested in understanding the company at a deeper level, take a look at OneSource Specialty Pharma's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is OneSource Specialty Pharma 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 OneSource Specialty Pharma 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 OneSource Specialty Pharma’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.