Bellicum Pharmaceuticals Inc (NASDAQ:BLCM): Are Analysts Optimistic?

Bellicum Pharmaceuticals Inc’s (NASDAQ:BLCM): Bellicum Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on discovering and developing novel cellular immunotherapies for the treatment of hematological cancers, solid tumors, and orphan inherited blood disorders in the United States and internationally. With the latest financial year loss of -US$91.78m and a trailing-twelve month of -US$92.65m, the US$425.73m market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is BLCM’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for BLCM’s growth and when analysts expect the company to become profitable.

Check out our latest analysis for Bellicum Pharmaceuticals

Expectation from Biotechs analysts is BLCM is on the verge of breakeven. They expect the company to post a final loss in -1, before turning a profit of US$0 in . BLCM is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which BLCM must grow year-on-year. It turns out an average annual growth rate of 20.21% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGM:BLCM Past Future Earnings June 19th 18
NasdaqGM:BLCM Past Future Earnings June 19th 18

I’m not going to go through company-specific developments for BLCM given that this is a high-level summary, but, 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing I would like to bring into light with BLCM is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in BLCM’s case is 53.37%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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

  1. Valuation: What is BLCM 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 BLCM 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 Bellicum Pharmaceuticals’s board and the CEO’s back ground.
  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.