When Will ExpreS2ion Biotech Holding AB (publ) (STO:EXPRS2) Turn A Profit?

With the business potentially at an important milestone, we thought we'd take a closer look at ExpreS2ion Biotech Holding AB (publ)'s (STO:EXPRS2) future prospects. ExpreS2ion Biotech Holding AB (publ), through its subsidiary, ExpreS2 ion Biotechnologies ApS, develops, produces, and delivers therapeutics or diagnostic proteins in Denmark and internationally. The kr659m market-cap company announced a latest loss of kr44m on 31 December 2021 for its most recent financial year result. The most pressing concern for investors is ExpreS2ion Biotech Holding's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for ExpreS2ion Biotech Holding

According to some industry analysts covering ExpreS2ion Biotech Holding, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of kr142m in 2023. Therefore, the company is expected to breakeven just over a year 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 74%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of ExpreS2ion Biotech Holding's upcoming projects, though, keep 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 The company has managed its capital judiciously, with debt making up 1.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on ExpreS2ion Biotech Holding, so if you are interested in understanding the company at a deeper level, take a look at ExpreS2ion Biotech Holding's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Historical Track Record: What has ExpreS2ion Biotech Holding'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 ExpreS2ion Biotech Holding'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.