BioInvent International AB (publ) (STO:BINV): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at BioInvent International AB (publ)'s (STO:BINV) future prospects. BioInvent International AB (publ), a clinical-stage company, discovers, researches, and develops novel immuno-modulatory antibodies for the treatment of cancer in Sweden, Europe, the United States, and internationally. With the latest financial year loss of kr330m and a trailing-twelve-month loss of kr335m, the kr2.2b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is BioInvent International's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for BioInvent International

According to the 2 industry analysts covering BioInvent International, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of kr511m in 2025. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 82% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of BioInvent International's upcoming projects, however, take into account that generally 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.

One thing we’d like to point out is that BioInvent International 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 key fundamentals of BioInvent International 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 BioInvent International, take a look at BioInvent International's company page on Simply Wall St. We've also put together a list of important factors you should further research:

1. Historical Track Record: What has BioInvent International'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 BioInvent International'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.