Adverum Biotechnologies Inc’s (NASDAQ:ADVM): Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, engages in developing gene therapy product candidates that target serious rare and ocular diseases. The US$361.18m market-cap posted a loss in its most recent financial year of -US$56.15m and a latest trailing-twelve-month loss of -US$57.25m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which ADVM will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for ADVM.
View out our latest analysis for Adverum Biotechnologies
ADVM is bordering on breakeven, according to Biotechs analysts.
They expect the company to post a final loss in -1, before turning a profit of US$0 in .
Therefore, ADVM is expected to breakeven roughly
a few months from now.
How fast will ADVM have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow -14.08% year-on-year, on average,
Given this is a high-level overview, I won’t go into details of ADVM’s upcoming projects, though, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that ADVM 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 ADVM 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:
This article is not intended to be a comprehensive analysis on ADVM, so if you are interested in understanding the company at a deeper level, take a look at ADVM’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should look at:
- Historical Track Record: What has ADVM’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Adverum Biotechnologies’s board and the CEO’s back ground.
- 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.