uniQure NV’s (NASDAQ:QURE): uniQure N.V., a gene therapy company, engages in the discovery, development, and commercialization of gene therapies in the Netherlands. With the latest financial year loss of -US$79.26m and a trailing-twelve month of -US$77.78m, the US$1.32b market-cap alleviates its loss by moving closer towards its target of breakeven. The most pressing concern for investors is QURE’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for QURE.See our latest analysis for uniQure
Expectation from Biotechs analysts is QURE 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 . Therefore, QURE is expected to breakeven roughly a few months from now. In order to meet this breakeven date, I calculated the rate at which QURE must grow year-on-year. It turns out an average annual growth rate of 11.10% is expected, which seems relatively fair. Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for QURE given that this is a high-level summary, however, take into account that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means a double-digit growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one aspect worth mentioning. QURE has managed its capital prudently, with debt making up 20.76% of equity. This means that QURE 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 QURE, so if you are interested in understanding the company at a deeper level, take a look at QURE’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should further research:
- Historical Track Record: What has QURE’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 uniQure’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.