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

Daré Bioscience, Inc. (NASDAQ:DARE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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 US$29m market-cap company’s loss lessened since it announced a US$13m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$12m, as it approaches breakeven. The most pressing concern for investors is Daré Bioscience's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 3 of the American Pharmaceuticals analysts is that Daré Bioscience is on the verge of breakeven. They expect the company to post a final loss in 2027, before turning a profit of US$1.3m in 2028. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% year-on-year, on average, which is extremely buoyant. 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, though, bear in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Check out our latest analysis for Daré Bioscience

One thing we would like to bring into light with Daré Bioscience is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases 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 factors you should look at:

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.