Cellectar Biosciences, Inc. (NASDAQ:CLRB) Is Expected To Breakeven In The Near Future

Cellectar Biosciences, Inc. (NASDAQ:CLRB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cellectar Biosciences, Inc., a clinical biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs for the treatment of cancer. The company’s loss has recently broadened since it announced a US$38m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$51m, moving it further away from breakeven. The most pressing concern for investors is Cellectar Biosciences' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Cellectar Biosciences

Consensus from 4 of the American Biotechs analysts is that Cellectar Biosciences is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$21m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 67%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Cellectar Biosciences given that this is a high-level summary, though, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Cellectar Biosciences has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Cellectar Biosciences to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cellectar Biosciences' company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:

1. Historical Track Record: What has Cellectar 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 Cellectar 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.