Market Sentiment Around Loss-Making Bellicum Pharmaceuticals Inc (NASDAQ:BLCM)

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. The US$226.61M market-cap company announced a latest loss of -US$91.78M on 31 December 2017 for its most recent financial year result. Many investors are wondering the rate at which BLCM will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for BLCM, its year of breakeven and its implied growth rate.

Check out our latest analysis for Bellicum Pharmaceuticals

BLCM is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$40.88M in 2022. So, BLCM is predicted to breakeven approximately 4 years from today. 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 30.83% is expected, which is rather optimistic! If this rate turns out to be too aggressive, BLCM may become profitable much later than analysts predict.

NasdaqGM:BLCM Past Future Earnings Apr 12th 18
NasdaqGM:BLCM Past Future Earnings Apr 12th 18

Given this is a high-level overview, I won’t go into detail the detail of BLCM’s upcoming projects, but, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing I’d like to point out is that BLCM has managed its capital judiciously, with debt making up 41.48% of equity. This means that BLCM has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of BLCM to cover in one brief article, but the key fundamentals for the company can all be found in one place – BLCM’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors 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.