BioInvent International AB (publ) (STO:BINV) Has Found A Path To Profitability

We feel now is a pretty good time to analyse BioInvent International AB (publ)'s (STO:BINV) business as it appears the company may be on the cusp of a considerable accomplishment. 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. The kr1.7b market-cap company posted a loss in its most recent financial year of kr330m and a latest trailing-twelve-month loss of kr410m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is BioInvent International's 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.

View 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 kr356m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for BioInvent International given that this is a high-level summary, however, bear in mind that by and large 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 BioInvent International has no debt on its balance sheet, which is rare for a loss-making 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 compiled a list of key aspects you should further examine:

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.