Breakeven On The Horizon For VYNE Therapeutics Inc. (NASDAQ:VYNE)

VYNE Therapeutics Inc. (NASDAQ:VYNE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. VYNE Therapeutics Inc., a pharmaceutical company, focuses on developing and commercializing various therapeutics for dermatology. The company’s loss has recently broadened since it announced a US$95m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$270m, moving it further away from breakeven. Many investors are wondering about the rate at which VYNE 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 VYNE Therapeutics

Consensus from 5 of the American Pharmaceuticals analysts is that VYNE Therapeutics is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$15m 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 56% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving VYNE Therapeutics' growth isn’t the focus of this broad overview, but, keep in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. VYNE Therapeutics currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in VYNE Therapeutics' case is 67%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is VYNE 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 VYNE 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 VYNE 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.

If you’re looking to trade VYNE Therapeutics, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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