When Will ISR Immune System Regulation Holding AB (publ) (STO:ISR) Become Profitable?

We feel now is a pretty good time to analyse ISR Immune System Regulation Holding AB (publ)'s (STO:ISR) business as it appears the company may be on the cusp of a considerable accomplishment. ISR Immune System Regulation Holding AB (publ) develops immunostimulatory drugs to treat chronic infectious diseases and cancer in Sweden. The kr373m market-cap company posted a loss in its most recent financial year of kr79m and a latest trailing-twelve-month loss of kr257m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is ISR Immune System Regulation 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.

View our latest analysis for ISR Immune System Regulation Holding

Expectations from some of the Swedish Biotechs analysts is that ISR Immune System Regulation Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of kr104m in 2023. So, the company is predicted to breakeven just over a year from today. 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 101%, which signals high confidence from analysts. 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 ISR Immune System Regulation Holding's upcoming projects, but, take into account 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.

One thing we would like to bring into light with ISR Immune System Regulation Holding is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of ISR Immune System Regulation Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – ISR Immune System Regulation Holding's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Valuation: What is ISR Immune System Regulation Holding 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 ISR Immune System Regulation Holding 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 ISR Immune System Regulation 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.