Analysts Expect Protalix BioTherapeutics, Inc. (NYSEMKT:PLX) To Breakeven Soon

We feel now is a pretty good time to analyse Protalix BioTherapeutics, Inc.'s (NYSEMKT:PLX) business as it appears the company may be on the cusp of a considerable accomplishment. Protalix BioTherapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in Israel, Brazil, rest of Latin America, and internationally. The US$226m market-cap company’s loss lessened since it announced a US$18m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$6.6m, as it approaches breakeven. Many investors are wondering about the rate at which Protalix BioTherapeutics 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 Protalix BioTherapeutics

Consensus from 2 of the American Biotechs analysts is that Protalix BioTherapeutics is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$612k in 2021. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 139% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Protalix BioTherapeutics given that this is a high-level summary, though, take into account that typically 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 issue worth mentioning. Protalix BioTherapeutics currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Protalix BioTherapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Protalix BioTherapeutics, take a look at Protalix BioTherapeutics' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has Protalix BioTherapeutics' 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 Protalix BioTherapeutics' 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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