Analysts Expect Breakeven For Xspray Pharma AB (publ) (STO:XSPRAY) Before Long

We feel now is a pretty good time to analyse Xspray Pharma AB (publ)'s (STO:XSPRAY) business as it appears the company may be on the cusp of a considerable accomplishment. Xspray Pharma AB (publ), a pharmaceutical company, engages in the development of protein kinase inhibitors for targeted cancer treatments in Sweden. With the latest financial year loss of kr180m and a trailing-twelve-month loss of kr215m, the kr1.7b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Xspray Pharma'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.

View our latest analysis for Xspray Pharma

According to the 2 industry analysts covering Xspray Pharma, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of kr818m in 2026. The company is therefore projected to breakeven around 2 years from now. 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 122% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Xspray Pharma given that this is a high-level summary, however, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that Xspray Pharma 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. 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 key fundamentals of Xspray Pharma 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 Xspray Pharma, take a look at Xspray Pharma's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Historical Track Record: What has Xspray 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 Xspray 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.