Clene Inc. (NASDAQ:CLNN): When Will It Breakeven?

Clene Inc. (NASDAQ:CLNN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Clene Inc., a clinical-stage pharmaceutical company, focuses on the discovery, development, and commercialization of novel clean-surfaced nanotechnology (CSN) therapeutics. With the latest financial year loss of US$39m and a trailing-twelve-month loss of US$30m, the US$107m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Clene 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.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

According to the 7 industry analysts covering Clene, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$2.2m in 2027. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 78%, 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 Clene's growth isn’t the focus of this broad overview, but, keep 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, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Clene

Before we wrap up, there’s one issue worth mentioning. Clene 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 Clene to cover in one brief article, but the key fundamentals for the company can all be found in one place – Clene's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Valuation: What is Clene 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 Clene 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 Clene’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.

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

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.