Soleno Therapeutics Inc’s (NASDAQ:SLNO): Soleno Therapeutics, Inc. focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company’s loss has recently broadened since it announced a -US$10.39M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$17.99M, moving it further away from breakeven. Many investors are wondering the rate at which SLNO will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for SLNO.View our latest analysis for Soleno Therapeutics
According to the industry analysts covering SLNO, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$10.34M in 2022. SLNO is therefore projected to breakeven around 4 years from now. How fast will SLNO have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 27.31% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, SLNO may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of SLNO’s upcoming projects, however, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. SLNO currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that SLNO 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.
There are key fundamentals of SLNO which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at SLNO, take a look at SLNO’s company page on Simply Wall St. I’ve also put together a list of key aspects you should look at:
- Historical Track Record: What has SLNO’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 Soleno 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.