Protagonist Therapeutics Inc’s (NASDAQ:PTGX): Protagonist Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing peptide-based drugs to address various unmet medical needs. With the latest financial year loss of -US$36.96m and a trailing-twelve month of -US$30.52m, the US$147.79m market-cap alleviates its loss by moving closer towards its target of breakeven. Many investors are wondering the rate at which PTGX will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for PTGX’s growth and when analysts expect the company to become profitable.
View out our latest analysis for Protagonist Therapeutics
According to the industry analysts covering PTGX, breakeven is near.
They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in .
So, PTGX is predicted to breakeven approximately
a couple of months from now!
How fast will PTGX 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 -30.62% year-on-year, on average,
Underlying developments driving PTGX’s growth isn’t the focus of this broad overview, though, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that PTGX 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 PTGX 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 PTGX, so if you are interested in understanding the company at a deeper level, take a look at PTGX’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should look at:
- Historical Track Record: What has PTGX’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 Protagonist Therapeutics’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.