Protagonist Therapeutics Inc (NASDAQ:PTGX): When Will It Breakeven?

Protagonist Therapeutics Inc’s (NASDAQ:PTGX): Protagonist Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing peptide-based chemical entities to address various unmet medical needs. With the latest financial year loss of -US$37.73M and a trailing-twelve month of -US$45.15M, the US$405.70M market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is PTGX’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for PTGX, its year of breakeven and its implied growth rate.

See our latest analysis for Protagonist Therapeutics

PTGX is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$33.69M in 2020. PTGX is therefore projected to breakeven around 2 years from today. How fast will PTGX have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 12.03% year-on-year, on average, which seems relatively fair. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGM:PTGX Past Future Earnings Mar 7th 18
NasdaqGM:PTGX Past Future Earnings Mar 7th 18

Given this is a high-level overview, I won’t go into detail the detail of PTGX’s upcoming projects, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, a double-digit growth rate is not abnormal as the company is beginning to reap the benefits of earlier investments.

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. PTGX 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 PTGX to cover in one brief article, but the key fundamentals for the company can all be found in one place – PTGX’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further research:

  1. 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.
  2. 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.
  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.