Soligenix Inc’s (NASDAQ:SNGX) Path To Profitability

Soligenix Inc’s (NASDAQ:SNGX): Soligenix, Inc., a late-stage biopharmaceutical company, focuses on developing and commercializing products to treat rare diseases in the United States. The company’s loss has recently broadened since it announced a -US$7.15m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$7.79m, moving it further away from breakeven. The most pressing concern for investors is SNGX’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for SNGX.

Check out our latest analysis for Soligenix

Expectation from Biotechs analysts is SNGX is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$27.55m in 2021. SNGX is therefore projected to breakeven around a couple of months from now! What rate will SNGX have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 63.16%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqCM:SNGX Past Future Earnings June 25th 18
NasdaqCM:SNGX Past Future Earnings June 25th 18

Given this is a high-level overview, I won’t go into details of SNGX’s upcoming projects, however, take into account that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high 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. SNGX currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. SNGX 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 key fundamentals of SNGX 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 SNGX, take a look at SNGX’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should further research:

  1. Historical Track Record: What has SNGX’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 Soligenix’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.