BioInvent International AB (publ) (STO:BINV): When Will It Breakeven?

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 and develops immuno-modulatory antibodies for the treatment of cancer in Sweden, Europe, the United States, and internationally. The kr2.0b market-cap company posted a loss in its most recent financial year of kr429m and a latest trailing-twelve-month loss of kr292m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which BioInvent International will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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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 2025, before turning a profit of kr198m in 2026. 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 51% 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.

Given this is a high-level overview, we won’t go into details of BioInvent International's upcoming projects, though, take into account that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for BioInvent International

Before we wrap up, there’s one aspect worth mentioning. BioInvent International 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 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 relevant aspects you should look at:

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.