When Will Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) Breakeven?

Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Citius Pharmaceuticals, Inc., a late-stage biopharmaceutical company, engages in the development and commercialization of critical care products. The US$143m market-cap company posted a loss in its most recent financial year of US$34m and a latest trailing-twelve-month loss of US$37m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Citius Pharmaceuticals' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Citius Pharmaceuticals

According to the 3 industry analysts covering Citius Pharmaceuticals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$15m in 2025. So, the company is predicted to breakeven just over a year 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 63%, which is extremely buoyant. 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 Citius Pharmaceuticals given that this is a high-level summary, however, keep 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:

This article is not intended to be a comprehensive analysis on Citius Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at Citius Pharmaceuticals' company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Citius Pharmaceuticals 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 Citius Pharmaceuticals 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 Citius Pharmaceuticals’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.

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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.

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