Daré Bioscience, Inc. (NASDAQ:DARE): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Daré Bioscience, Inc.'s (NASDAQ:DARE) future prospects. Daré Bioscience, Inc. develops therapies in the areas of contraception, pelvic pain, fertility, infectious disease, menopause, and sexual and vaginal health in the United States. The company’s loss has recently broadened since it announced a US$4.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$17m, moving it further away from breakeven. Many investors are wondering about the rate at which Daré Bioscience will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 3 of the American Pharmaceuticals analysts is that Daré Bioscience is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$21m in 2027. So, the company is predicted to breakeven just over a year 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 59% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Daré Bioscience's upcoming projects, however, 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Daré Bioscience

One thing we’d like to point out is that Daré Bioscience has no debt on its balance sheet, which is rare for a loss-making pharma, which typically has high 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 Daré Bioscience 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 Daré Bioscience, take a look at Daré Bioscience's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Historical Track Record: What has Daré Bioscience'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Daré Bioscience'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.