Cidara Therapeutics Inc’s (NASDAQ:CDTX): Cidara Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of anti-infectives for the treatment of diseases. With the latest financial year loss of -US$55.73m and a trailing-twelve month of -US$59.08m, the US$148.08m market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which CDTX will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for CDTX.See our latest analysis for Cidara Therapeutics
According to the industry analysts covering CDTX, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . So, CDTX is predicted to breakeven approximately a couple of months from now! How fast will CDTX have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 4.20% year-on-year, on average, which is a somewhat cautious outlook. If this rate turns out to be too low, CDTX may become profitable faster than analysts expect.
Underlying developments driving CDTX’s growth isn’t the focus of this broad overview, but, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. CDTX has managed its capital judiciously, with debt making up 19.43% of equity. This means that CDTX has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on CDTX, so if you are interested in understanding the company at a deeper level, take a look at CDTX’s company page on Simply Wall St. I’ve also compiled a list of important factors you should look at:
- Historical Track Record: What has CDTX’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Cidara Therapeutics’s board and the CEO’s back ground.
- 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.