Aytu BioPharma, Inc. (NASDAQ:AYTU) Is About To Turn The Corner

Aytu BioPharma, Inc. (NASDAQ:AYTU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aytu BioPharma, Inc., a pharmaceutical company, focuses on commercializing novel therapeutics drugs in the United States and internationally. The US$9.2m market-cap company posted a loss in its most recent financial year of US$16m and a latest trailing-twelve-month loss of US$7.3m shrinking the gap between loss and breakeven. The most pressing concern for investors is Aytu BioPharma's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Aytu BioPharma

Aytu BioPharma is bordering on breakeven, according to some American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$4.1m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 85% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Aytu BioPharma's growth isn’t the focus of this broad overview, however, keep in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we would like to bring into light with Aytu BioPharma is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Aytu BioPharma's case is 56%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Aytu BioPharma to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aytu BioPharma's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Historical Track Record: What has Aytu BioPharma'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aytu BioPharma'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.