When Will Tevogen Bio Holdings Inc. (NASDAQ:TVGN) Turn A Profit?

Tevogen Bio Holdings Inc. (NASDAQ:TVGN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tevogen Bio Holdings Inc., a clinical-stage specialty immunotherapy company, develops off-the-shelf precision T cell therapies for the treatment of infectious diseases, cancers, and other disorders. With the latest financial year loss of US$10m and a trailing-twelve-month loss of US$31m, the US$162m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Tevogen Bio Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to some industry analysts covering Tevogen Bio Holdings, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$475m in 2027. 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 68%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Tevogen Bio Holdings' upcoming projects, but, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Check out our latest analysis for Tevogen Bio Holdings

One thing we would like to bring into light with Tevogen Bio Holdings is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of Tevogen Bio Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tevogen Bio Holdings' company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Historical Track Record: What has Tevogen Bio Holdings' 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 Tevogen Bio Holdings' 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.