Analysts Expect Breakeven For Alligator Bioscience AB (publ) (STO:ATORX) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Alligator Bioscience AB (publ)'s (STO:ATORX) future prospects. Alligator Bioscience AB (publ), a research-based biotechnology company, develops antibody-based pharmaceuticals for cancer treatment in Finland and Sweden. The kr192m market-cap company posted a loss in its most recent financial year of kr234m and a latest trailing-twelve-month loss of kr132m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Alligator Bioscience will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Alligator Bioscience is bordering on breakeven, according to some Swedish Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr139m in 2026. Therefore, the company is expected 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 59% 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.

We're not going to go through company-specific developments for Alligator Bioscience given that this is a high-level summary, but, keep 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Check out our latest analysis for Alligator Bioscience

One thing we would like to bring into light with Alligator Bioscience is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Historical Track Record: What has Alligator Bioscience'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 Alligator Bioscience'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.