Analysts Are Optimistic We'll See A Profit From Agios Pharmaceuticals, Inc. (NASDAQ:AGIO)

With the business potentially at an important milestone, we thought we'd take a closer look at Agios Pharmaceuticals, Inc.'s (NASDAQ:AGIO) future prospects. Agios Pharmaceuticals, Inc., a biopharmaceutical company, discovers and develops medicines in the field of cellular metabolism in the United States. The company’s loss has recently broadened since it announced a US$352m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$365m, moving it further away from breakeven. The most pressing concern for investors is Agios Pharmaceuticals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Agios Pharmaceuticals

According to the 10 industry analysts covering Agios Pharmaceuticals, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$396m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow -1.8% year-on-year, on average,

Underlying developments driving Agios Pharmaceuticals' growth isn’t the focus of this broad overview, though, take into account that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 we’d like to point out is that Agios Pharmaceuticals has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high 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:

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

1. Valuation: What is Agios Pharmaceuticals 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 Agios Pharmaceuticals 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 Agios Pharmaceuticals’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.