Corvus Pharmaceuticals Inc’s (NASDAQ:CRVS): Corvus Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of immuno-oncology therapies that are designed to harness the immune system to attack cancer cells. The US$274.82M market-cap company announced a latest loss of -US$55.66M on 31 December 2017 for its most recent financial year result. As path to profitability is the topic on CRVS’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for CRVS.Check out our latest analysis for Corvus Pharmaceuticals
According to the industry analysts covering CRVS, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$3.54M in 2021. Therefore, CRVS is expected to breakeven roughly 3 years from now. What rate will CRVS have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 36.30%, which is rather optimistic! 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, I won’t go into detail the detail of CRVS’s upcoming projects, but, take into account that typically 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.
Before I wrap up, there’s one aspect worth mentioning. CRVS currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that CRVS 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.
There are too many aspects of CRVS to cover in one brief article, but the key fundamentals for the company can all be found in one place – CRVS’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should look at:
- Historical Track Record: What has CRVS’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 Corvus Pharmaceuticals’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.