Immunic, Inc.'s (NASDAQ:IMUX) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Immunic, Inc.'s (NASDAQ:IMUX) future prospects. Immunic, Inc., a biotechnology company, develops a pipeline of selective oral immunology therapies for the treatment of chronic inflammatory and autoimmune diseases in the United States and Germany. With the latest financial year loss of US$94m and a trailing-twelve-month loss of US$95m, the US$120m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Immunic'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.

View our latest analysis for Immunic

Immunic is bordering on breakeven, according to the 4 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$92m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 65% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Immunic's growth isn’t the focus of this broad overview, though, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that Immunic has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Immunic to cover in one brief article, but the key fundamentals for the company can all be found in one place – Immunic's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

1. Historical Track Record: What has Immunic'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 Immunic'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.