When Can We Expect A Profit From Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS)?

With the business potentially at an important milestone, we thought we'd take a closer look at Tarsus Pharmaceuticals, Inc.'s (NASDAQ:TARS) future prospects. Tarsus Pharmaceuticals, Inc., a commercial stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for eye care in the United States. The US$1.2b market-cap company posted a loss in its most recent financial year of US$136m and a latest trailing-twelve-month loss of US$148m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Tarsus Pharmaceuticals' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Tarsus Pharmaceuticals

Tarsus Pharmaceuticals is bordering on breakeven, according to the 7 American Pharmaceuticals analysts. They expect the company to post a final loss in 2025, before turning a profit of US$115m in 2026. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 62%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Tarsus Pharmaceuticals' upcoming projects, though, bear in mind that generally pharmaceuticals, 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 11% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Tarsus Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Tarsus Pharmaceuticals, take a look at Tarsus Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of key factors you should further examine:

1. Historical Track Record: What has Tarsus Pharmaceuticals' 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 Tarsus Pharmaceuticals' board and the CEO’s background.
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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com