We feel now is a pretty good time to analyse Impel NeuroPharma, Inc.'s (NASDAQ:IMPL) business as it appears the company may be on the cusp of a considerable accomplishment. Impel NeuroPharma, Inc., a late-stage pharmaceutical company, focuses on the development and commercialization of therapies for patients suffering from central nervous system disease in the United States. The US$185m market-cap company posted a loss in its most recent financial year of US$46m and a latest trailing-twelve-month loss of US$66m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Impel NeuroPharma's 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.
Impel NeuroPharma is bordering on breakeven, according to the 3 American Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of US$76m in 2024. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, 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 Impel NeuroPharma's upcoming projects, but, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 The company has managed its capital prudently, with debt making up 39% 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.
There are too many aspects of Impel NeuroPharma to cover in one brief article, but the key fundamentals for the company can all be found in one place – Impel NeuroPharma's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
- Valuation: What is Impel NeuroPharma 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 Impel NeuroPharma is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Impel NeuroPharma’s board and the CEO’s background.
- 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.