When Can We Expect A Profit From Vivoryon Therapeutics N.V. (AMS:VVY)?

We feel now is a pretty good time to analyse Vivoryon Therapeutics N.V.'s (AMS:VVY) business as it appears the company may be on the cusp of a considerable accomplishment. Vivoryon Therapeutics N.V., a clinical stage biopharmaceutical company, engages in the research, development, and commercialize small molecule-based medicines. The €23m market-cap company announced a latest loss of €28m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Vivoryon Therapeutics' 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.

Check out 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 €19m in 2025. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 73% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Vivoryon Therapeutics' growth isn’t the focus of this broad overview, but, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Vivoryon 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 key fundamentals of Vivoryon Therapeutics 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 Vivoryon Therapeutics, take a look at Vivoryon Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.