AlzeCure Pharma AB (publ) (STO:ALZCUR) Has Found A Path To Profitability

AlzeCure Pharma AB (publ) (STO:ALZCUR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AlzeCure Pharma AB (publ), a pharmaceutical company, develops drug therapies for the treatment of severe diseases and conditions that affect the central nervous system. On 31 December 2023, the kr192m market-cap company posted a loss of kr37m for its most recent financial year. As path to profitability is the topic on AlzeCure Pharma's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for AlzeCure Pharma

According to some industry analysts covering AlzeCure Pharma, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of kr17m in 2024. The company is therefore projected to breakeven around 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 -35%,

Underlying developments driving AlzeCure Pharma's growth isn’t the focus of this broad overview, but, bear in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, periods of lower growth in the upcoming years 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 AlzeCure Pharma has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, 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 AlzeCure Pharma 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 AlzeCure Pharma, take a look at AlzeCure Pharma's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Historical Track Record: What has AlzeCure Pharma's 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 AlzeCure 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.

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.