We Might See A Profit From Mezzion Pharma Co.,Ltd. (KOSDAQ:140410) Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Mezzion Pharma Co.,Ltd.'s (KOSDAQ:140410) future prospects. Mezzion Pharma Co.,Ltd. engages in the development, licensing, and commercialization of drugs for the treatment of vascular diseases. With the latest financial year loss of ₩23b and a trailing-twelve-month loss of ₩26b, the ₩1.2t market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Mezzion PharmaLtd's investors mind, we've decided to gauge market sentiment. 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 Mezzion PharmaLtd

Mezzion PharmaLtd is bordering on breakeven, according to some South Korean Pharmaceuticals analysts. They expect the company to post a final loss in 2020, before turning a profit of ₩19b in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 133% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Mezzion PharmaLtd's upcoming projects, though, keep in mind that typically pharmaceuticals, 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. The company has managed its capital judiciously, with debt making up 3.5% 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:

There are too many aspects of Mezzion PharmaLtd to cover in one brief article, but the key fundamentals for the company can all be found in one place – Mezzion PharmaLtd's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is Mezzion PharmaLtd 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 Mezzion PharmaLtd 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 Mezzion PharmaLtd’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. 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.
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