Stock Analysis

When Will Nabriva Therapeutics plc (NASDAQ:NBRV) Breakeven?

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NasdaqCM:NBRV
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We feel now is a pretty good time to analyse Nabriva Therapeutics plc's (NASDAQ:NBRV) business as it appears the company may be on the cusp of a considerable accomplishment. Nabriva Therapeutics plc, a biopharmaceutical company, engages in the development and commercialization of novel anti-infective agents to treat serious infections. The US$66m market-cap company posted a loss in its most recent financial year of US$83m and a latest trailing-twelve-month loss of US$75m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Nabriva Therapeutics will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Nabriva Therapeutics

Nabriva Therapeutics is bordering on breakeven, according to the 3 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$17m in 2023. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 59%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
NasdaqGS:NBRV Earnings Per Share Growth February 16th 2021

Given this is a high-level overview, we won’t go into details of Nabriva Therapeutics' upcoming projects, though, take into account that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 21% 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.

Next Steps:

This article is not intended to be a comprehensive analysis on Nabriva Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Nabriva Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

  1. Historical Track Record: What has Nabriva Therapeutics' 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 Nabriva Therapeutics' 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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What are the risks and opportunities for Nabriva Therapeutics?

Nabriva Therapeutics plc, a biopharmaceutical company, engages in the development and commercialization of novel anti-infective agents to treat serious infections.

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Rewards

  • Earnings are forecast to grow 60.18% per year

  • Earnings have grown 12.8% per year over the past 5 years

Risks

  • Has less than 1 year of cash runway

  • Does not have a meaningful market cap ($6M)

  • Shareholders have been diluted in the past year

  • Volatile share price over the past 3 months

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Nabriva Therapeutics

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