Modus Therapeutics Holding AB (publ) (STO:MODTX): When Will It Breakeven?

Modus Therapeutics Holding AB (publ) (STO:MODTX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Modus Therapeutics Holding AB (publ), a biotechnology company, develops a treatment for sepsis and septic shock in Sweden. The kr43m market-cap company announced a latest loss of kr16m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Modus Therapeutics Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Modus Therapeutics Holding

Modus Therapeutics Holding is bordering on breakeven, according to the 2 Swedish Biotechs analysts. They expect the company to post a final loss in 2026, before turning a profit of kr10m in 2027. So, the company is predicted to breakeven approximately 2 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 14%, which seems relatively fair. 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 Modus Therapeutics Holding's upcoming projects, however, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means a double-digit growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that Modus Therapeutics Holding has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Modus Therapeutics Holding which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Modus Therapeutics Holding, take a look at Modus Therapeutics Holding's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Modus Therapeutics 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 Modus Therapeutics 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 Modus Therapeutics 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.