Unicycive Therapeutics, Inc. (NASDAQ:UNCY) Is Expected To Breakeven In The Near Future

With the business potentially at an important milestone, we thought we'd take a closer look at Unicycive Therapeutics, Inc.'s (NASDAQ:UNCY) future prospects. Unicycive Therapeutics, Inc., a biotechnology company, develops treatments for various medical conditions in the United States. With the latest financial year loss of US$31m and a trailing-twelve-month loss of US$24m, the US$62m market-cap company alleviated its loss by moving closer towards its target of 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Unicycive Therapeutics

Consensus from 6 of the American Biotechs analysts is that Unicycive Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$213m in 2026. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 41% year-on-year, on average, which is extremely buoyant. 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 Unicycive Therapeutics' upcoming projects, however, keep in mind that generally biotechs, 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. Unicycive Therapeutics currently 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 compiled a list of pertinent factors you should further research:

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.