When Can We Expect A Profit From Atossa Therapeutics, Inc. (NASDAQ:ATOS)?

We feel now is a pretty good time to analyse Atossa Therapeutics, Inc.'s (NASDAQ:ATOS) business as it appears the company may be on the cusp of a considerable accomplishment. Atossa Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops medicines in the areas of unmet medical need in oncology for women breast cancer and other conditions in the United States. The US$172m market-cap company’s loss lessened since it announced a US$30m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$26m, as it approaches breakeven. As path to profitability is the topic on Atossa Therapeutics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Atossa Therapeutics

Atossa Therapeutics is bordering on breakeven, according to the 4 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$724k in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 71% 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.

Underlying developments driving Atossa Therapeutics' growth isn’t the focus of this broad overview, though, take into account that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. Atossa Therapeutics currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that the company 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 Atossa Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Atossa Therapeutics' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Atossa 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 Atossa 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 Atossa 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.