Stock Analysis

Vivoryon Therapeutics N.V.'s (AMS:VVY) Shift From Loss To Profit

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Vivoryon Therapeutics N.V. (AMS:VVY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Vivoryon Therapeutics N.V., a clinical stage biopharmaceutical company, engages in the research, development, and commercialize small molecule-based medicines. The €297m market-cap company posted a loss in its most recent financial year of €28m and a latest trailing-twelve-month loss of €26m shrinking the gap between loss and breakeven. As path to profitability is the topic on Vivoryon Therapeutics' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Vivoryon Therapeutics

Consensus from 3 of the Dutch Biotechs analysts is that Vivoryon Therapeutics is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €36m in 2025. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 64%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

ENXTAM:VVY Earnings Per Share Growth September 23rd 2023

We're not going to go through company-specific developments for Vivoryon Therapeutics given that this is a high-level summary, however, bear in mind that typically a biotech has lumpy cash flows which are contingent on the product type 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.

One thing we’d like to point out is that Vivoryon Therapeutics 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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

  1. Historical Track Record: What has Vivoryon 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 Vivoryon 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.

Valuation is complex, but we're helping make it simple.

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