CRISPR Therapeutics AG’s (NASDAQ:CRSP): CRISPR Therapeutics AG, a gene editing company, focuses on developing transformative gene-based medicines for the treatment of serious human diseases using its regularly interspaced short palindromic repeats associated protein-9 (CRISPR/Cas9) gene-editing platform in Switzerland. The company’s loss has recently broadened since it announced a -US$68.36m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$75.18m, moving it further away from breakeven. Many investors are wondering the rate at which CRSP 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 CRSP, its year of breakeven and its implied growth rate.See our latest analysis for CRISPR Therapeutics
Expectation from Biotechs analysts is CRSP is on the verge of breakeven. They expect the company to post a final loss in -1, before turning a profit of US$0 in . So, CRSP is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which CRSP must grow year-on-year. It turns out an average annual growth rate of -20.14% is expected,
I’m not going to go through company-specific developments for CRSP given that this is a high-level summary, but, keep in mind that by and large 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. CRSP currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that CRSP 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.
This article is not intended to be a comprehensive analysis on CRSP, so if you are interested in understanding the company at a deeper level, take a look at CRSP’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should look at:
- Historical Track Record: What has CRSP’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 CRISPR 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.