Coherus BioSciences, Inc. (NASDAQ:CHRS) Has Found A Path To Profitability

With the business potentially at an important milestone, we thought we'd take a closer look at Coherus BioSciences, Inc.'s (NASDAQ:CHRS) future prospects. Coherus BioSciences, Inc., a biopharmaceutical company, focuses on the research, development, and commercialization of cancer treatments primarily in the United States. The US$150m market-cap company posted a loss in its most recent financial year of US$238m and a latest trailing-twelve-month loss of US$29m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Coherus BioSciences 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 Coherus BioSciences

According to the 8 industry analysts covering Coherus BioSciences, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.6m in 2024. Therefore, the company is expected to breakeven roughly a year 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 55% 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.

Given this is a high-level overview, we won’t go into details of Coherus BioSciences' upcoming projects, though, take into account 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 Coherus BioSciences 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:

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

1. Historical Track Record: What has Coherus BioSciences' 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 Coherus BioSciences' 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.