Guard Therapeutics International AB (publ) (STO:GUARD): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Guard Therapeutics International AB (publ)'s (STO:GUARD) future prospects. Guard Therapeutics International AB (publ), a pharmaceutical company, identifies, develops, and commercializes therapies for the diagnosis and treatment of acute kidney injuries in Sweden. The kr246m market-cap company’s loss lessened since it announced a kr113m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr87m, as it approaches breakeven. As path to profitability is the topic on Guard Therapeutics International's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Guard Therapeutics International

Consensus from 2 of the Swedish Biotechs analysts is that Guard Therapeutics International is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr180m in 2026. The company is therefore projected to breakeven just over a year from today. 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 78% is expected, which is extremely buoyant. 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 Guard Therapeutics International given that this is a high-level summary, however, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Guard Therapeutics 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:

This article is not intended to be a comprehensive analysis on Guard Therapeutics International, so if you are interested in understanding the company at a deeper level, take a look at Guard Therapeutics International's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Valuation: What is Guard Therapeutics 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 Guard Therapeutics 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 Guard Therapeutics 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.