Breakeven On The Horizon For Abeona Therapeutics Inc. (NASDAQ:ABEO)

Abeona Therapeutics Inc. (NASDAQ:ABEO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Abeona Therapeutics Inc., a clinical-stage biopharmaceutical company, develops gene and cell therapies for life-threatening diseases. On 31 December 2024, the US$231m market-cap company posted a loss of US$64m for its most recent financial year. The most pressing concern for investors is Abeona Therapeutics' 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.

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Abeona Therapeutics is bordering on breakeven, according to the 6 American Biotechs analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$34m in 2027. So, the company is predicted to breakeven approximately 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 64% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Abeona Therapeutics given that this is a high-level summary, but, keep in mind that by and large 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.

View our latest analysis for Abeona Therapeutics

Before we wrap up, there’s one issue worth mentioning. Abeona Therapeutics currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Abeona Therapeutics' case is 43%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Abeona Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Abeona Therapeutics' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Valuation: What is Abeona Therapeutics 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 Abeona Therapeutics 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 Abeona Therapeutics’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.