Minerva Neurosciences Inc’s (NASDAQ:NERV): Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of a portfolio of product candidates for the treatment of central nervous system diseases. The company’s loss has recently broadened since it announced a -US$31.52m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$33.30m, moving it further away from breakeven. Many investors are wondering the rate at which NERV will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for NERV’s growth and when analysts expect the company to become profitable.Check out our latest analysis for Minerva Neurosciences
According to the industry analysts covering NERV, breakeven is near. They expect the company to post a final loss in -1, before turning a profit of US$0 in . Therefore, NERV is expected to breakeven roughly a couple of months from now! How fast will NERV 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 7.32% year-on-year, on average, which is a somewhat cautious outlook. If this rate turns out to be too low, NERV may become profitable faster than analysts expect.
Given this is a high-level overview, I won’t go into details of NERV’s upcoming projects, however, keep in mind that generally 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. NERV has managed its capital prudently, with debt making up 2.22% of equity. This means that NERV has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on NERV, so if you are interested in understanding the company at a deeper level, take a look at NERV’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should look at:
- Historical Track Record: What has NERV’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Minerva Neurosciences’s board and the CEO’s back ground.
- 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.