Unicycive Therapeutics, Inc. (NASDAQ:UNCY): Is Breakeven Near?

Unicycive Therapeutics, Inc. (NASDAQ:UNCY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Unicycive Therapeutics, Inc., a biotechnology company, develops treatments for various medical conditions in the United States. The US$38m market-cap company posted a loss in its most recent financial year of US$31m and a latest trailing-twelve-month loss of US$24m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Unicycive Therapeutics will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Unicycive Therapeutics

Unicycive Therapeutics is bordering on breakeven, according to the 6 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$218m in 2026. 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 56% 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.

Underlying developments driving Unicycive Therapeutics' growth isn’t the focus of this broad overview, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 Unicycive Therapeutics has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Unicycive Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Unicycive Therapeutics' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Valuation: What is Unicycive Therapeutics 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 Unicycive Therapeutics 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 Unicycive Therapeutics’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. 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.