Sierra Oncology Inc’s (NASDAQ:SRRA): Sierra Oncology, Inc., a clinical stage drug development company, researches, develops, and commercializes DNA Damage Response (DDR) therapeutics for the treatment of patients with cancer in the United States and internationally. The US$269.75m market-cap posted a loss in its most recent financial year of -US$42.01m and a latest trailing-twelve-month loss of -US$42.45m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which SRRA 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 SRRA.Check out our latest analysis for Sierra Oncology
According to the industry analysts covering SRRA, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . Therefore, SRRA is expected to breakeven roughly a few months from now. What rate will SRRA 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 -20.69%,
I’m not going to go through company-specific developments for SRRA given that this is a high-level summary, though, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
One thing I’d like to point out is that SRRA has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. SRRA currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of SRRA to cover in one brief article, but the key fundamentals for the company can all be found in one place – SRRA’s company page on Simply Wall St. I’ve also compiled a list of key factors you should further research:
- Historical Track Record: What has SRRA’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 Sierra Oncology’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.