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

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 biopharmaceutical company, focuses on the development and commercialization of critical care products. With the latest financial year loss of US$40m and a trailing-twelve-month loss of US$41m, the US$31m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Citius Pharmaceuticals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 2 of the American Pharmaceuticals analysts is that Citius Pharmaceuticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$78m in 2027. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 52% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Citius Pharmaceuticals given that this is a high-level summary, but, bear in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for Citius Pharmaceuticals

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 1.5% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation 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 compiled a list of pertinent 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.

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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.