When Can We Expect A Profit From Moberg Pharma AB (publ) (STO:MOB)?

Moberg Pharma AB (publ) (STO:MOB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Moberg Pharma AB (publ), a pharmaceutical company, develops and commercializes medical products in Europe, the United States, and internationally. On 31 December 2023, the kr489m market-cap company posted a loss of kr21m for its most recent financial year. The most pressing concern for investors is Moberg Pharma's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Moberg Pharma

Moberg Pharma is bordering on breakeven, according to some Swedish Pharmaceuticals analysts. They expect the company to post a final loss in 2025, before turning a profit of kr5.0m in 2026. The company is therefore projected to breakeven around 2 years from now. 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 48% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Moberg Pharma's growth isn’t the focus of this broad overview, however, take into account that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. 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. Moberg Pharma currently has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, 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 Moberg Pharma to cover in one brief article, but the key fundamentals for the company can all be found in one place – Moberg Pharma's company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Valuation: What is Moberg Pharma 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 Moberg Pharma 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 Moberg Pharma’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.