When Will BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) Breakeven?

We feel now is a pretty good time to analyse BioCryst Pharmaceuticals, Inc.'s (NASDAQ:BCRX) business as it appears the company may be on the cusp of a considerable accomplishment. BioCryst Pharmaceuticals, Inc., a biotechnology company, develops oral small-molecule and protein therapeutics to treat rare diseases. The US$1.5b market-cap company posted a loss in its most recent financial year of US$227m and a latest trailing-twelve-month loss of US$209m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which BioCryst Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for BioCryst Pharmaceuticals

BioCryst Pharmaceuticals is bordering on breakeven, according to the 10 American Biotechs analysts. They expect the company to post a final loss in 2025, before turning a profit of US$24m in 2026. The company is therefore projected to breakeven around 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 67% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving BioCryst Pharmaceuticals' growth isn’t the focus of this broad overview, but, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with BioCryst Pharmaceuticals is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Valuation: What is BioCryst 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 BioCryst 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 BioCryst 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com