Stock Analysis

SynAct Pharma AB (STO:SYNACT): Is Breakeven Near?

OM:SYNACT
Source: Shutterstock

We feel now is a pretty good time to analyse SynAct Pharma AB's (STO:SYNACT) business as it appears the company may be on the cusp of a considerable accomplishment. SynAct Pharma AB, a clinical stage biotechnology company, researches and develops medicines for the treatment of inflammatory diseases in Sweden. The kr1.1b market-cap company posted a loss in its most recent financial year of kr82m and a latest trailing-twelve-month loss of kr82m shrinking the gap between loss and breakeven. The most pressing concern for investors is SynAct 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.

Expectations from some of the Swedish Biotechs analysts is that SynAct Pharma is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr183m in 2026. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 68% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
OM:SYNACT Earnings Per Share Growth July 30th 2025

We're not going to go through company-specific developments for SynAct Pharma given that this is a high-level summary, but, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for SynAct Pharma

Before we wrap up, there’s one aspect worth mentioning. SynAct Pharma currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of 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.

Advertisement

Next Steps:

This article is not intended to be a comprehensive analysis on SynAct Pharma, so if you are interested in understanding the company at a deeper level, take a look at SynAct Pharma's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

  1. Historical Track Record: What has SynAct Pharma'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 SynAct 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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About OM:SYNACT

SynAct Pharma

A clinical stage biotechnology company, researches and develops medicines for the treatment of inflammatory diseases in Sweden.

High growth potential with adequate balance sheet.

Advertisement