TFF Pharmaceuticals, Inc.'s (NASDAQ:TFFP) Shift From Loss To Profit

TFF Pharmaceuticals, Inc. (NASDAQ:TFFP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. TFF Pharmaceuticals, Inc., an early-stage biopharmaceutical company, focuses on developing and commercializing drug products based on its patented Thin Film Freezing, or TFF, technology platform in the United States and Australia. The US$222m market-cap company posted a loss in its most recent financial year of US$19m and a latest trailing-twelve-month loss of US$22m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which TFF Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for TFF Pharmaceuticals

According to the 4 industry analysts covering TFF Pharmaceuticals, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$16m in 2023. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 65% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for TFF Pharmaceuticals given that this is a high-level summary, however, keep in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. TFF Pharmaceuticals currently has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which usually has a high level of debt relative to its equity. The company 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:

This article is not intended to be a comprehensive analysis on TFF Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at TFF Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is TFF Pharmaceuticals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether TFF Pharmaceuticals is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TFF Pharmaceuticals’s 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. 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.
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