Analysts Expect Alimera Sciences, Inc. (NASDAQ:ALIM) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Alimera Sciences, Inc.'s (NASDAQ:ALIM) future prospects. Alimera Sciences, Inc., a pharmaceutical company, develops and commercializes prescription ophthalmic retinal pharmaceuticals. The US$180m market-cap company announced a latest loss of US$21m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Alimera Sciences' 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.

View our latest analysis for Alimera Sciences

Alimera Sciences is bordering on breakeven, according to the 3 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$332k in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 57%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Alimera Sciences' upcoming projects, however, bear in mind that generally pharmaceuticals, 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.

One thing we would like to bring into light with Alimera Sciences is its debt-to-equity ratio of 140%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Alimera Sciences 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 Alimera Sciences 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 Alimera Sciences’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.