Breakeven On The Horizon For Biovica International AB (publ) (STO:BIOVIC B)

With the business potentially at an important milestone, we thought we'd take a closer look at Biovica International AB (publ)'s (STO:BIOVIC B) future prospects. Biovica International AB (publ), a biotech company, develops and commercializes novel blood-based biomarker assays that enhance the monitoring and predicting of cancer therapies in the European Union, United States of America, and internationally. The kr139m market-cap company’s loss lessened since it announced a kr88m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr83m, as it approaches breakeven. The most pressing concern for investors is Biovica 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.

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According to the 2 industry analysts covering Biovica International, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2027, before generating positive profits of kr2.3m in 2028. The company is therefore projected to breakeven around 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 73%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Biovica International's growth isn’t the focus of this broad overview, however, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

See our latest analysis for Biovica International

Before we wrap up, there’s one aspect worth mentioning. Biovica International currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high 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 too many aspects of Biovica International to cover in one brief article, but the key fundamentals for the company can all be found in one place – Biovica International's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is Biovica International worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Biovica International is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Biovica 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.