Leap Therapeutics Inc (NASDAQ:LPTX): Is Breakeven Near?

Leap Therapeutics Inc’s (NASDAQ:LPTX): Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops therapies for the treatment of cancer. With the latest financial year loss of -US$29.97m and a trailing-twelve month of -US$30.93m, the US$121.87m market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which LPTX will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for LPTX’s growth and when analysts expect the company to become profitable.

See our latest analysis for Leap Therapeutics

Expectation from Biotechs analysts is LPTX is on the verge of breakeven. They expect the company to post a final loss in -1, before turning a profit of US$0 in . So, LPTX is predicted to breakeven approximately a few months from now. How fast will LPTX have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow -22.89% year-on-year, on average,

NasdaqGM:LPTX Past Future Earnings June 22nd 18
NasdaqGM:LPTX Past Future Earnings June 22nd 18

Underlying developments driving LPTX’s growth isn’t the focus of this broad overview, though, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

Before I wrap up, there’s one aspect worth mentioning. LPTX currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that LPTX 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:

This article is not intended to be a comprehensive analysis on LPTX, so if you are interested in understanding the company at a deeper level, take a look at LPTX’s company page on Simply Wall St. I’ve also compiled a list of important factors you should look at:

  1. Historical Track Record: What has LPTX’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 Leap Therapeutics’s board and the CEO’s back ground.
  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.