Stock Analysis

When Can We Expect A Profit From Citius Pharmaceuticals, Inc. (NASDAQ:CTXR)?

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NasdaqCM:CTXR
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With the business potentially at an important milestone, we thought we'd take a closer look at Citius Pharmaceuticals, Inc.'s (NASDAQ:CTXR) future prospects. Citius Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of critical care products focusing on anti-infective products in adjunct cancer care, prescription products, and mesenchymal stem cell therapy. The company’s loss has recently broadened since it announced a US$25m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$31m, moving it further away from breakeven. As path to profitability is the topic on Citius Pharmaceuticals' investors mind, we've decided to gauge market sentiment. 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 Citius Pharmaceuticals

Consensus from 3 of the American Pharmaceuticals analysts is that Citius Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$19m in 2024. Therefore, the company is expected to breakeven roughly 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 61%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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NasdaqCM:CTXR Earnings Per Share Growth October 4th 2022

Underlying developments driving Citius Pharmaceuticals' growth isn’t the focus of this broad overview, though, bear in mind that generally pharmaceuticals, 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’d like to point out is that Citius Pharmaceuticals has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, 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 key fundamentals of Citius Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Citius Pharmaceuticals, take a look at Citius Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

  1. Historical Track Record: What has Citius Pharmaceuticals' 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 Citius Pharmaceuticals' 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.

What are the risks and opportunities for Citius Pharmaceuticals?

Citius Pharmaceuticals, Inc., a late-stage pharmaceutical company, engages in the development and commercialization of critical care products focusing on oncology products, anti-infectives products in adjunct cancer care, prescription products, and stem cell therapy.

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Rewards

  • Earnings are forecast to grow 56.96% per year

Risks

  • Makes less than USD$1m in revenue ($0)

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About NasdaqCM:CTXR

Citius Pharmaceuticals

Citius Pharmaceuticals, Inc., a late-stage pharmaceutical company, engages in the development and commercialization of critical care products focusing on oncology products, anti-infectives products in adjunct cancer care, prescription products, and stem cell therapy.

Flawless balance sheet with moderate growth potential.