Yahoo Finance Aimmune Therapeutics, Inc. (NASDAQ:AIMT) Is Expected To Breakeven
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Aimmune Therapeutics, Inc.'s (NASDAQ:AIMT): Aimmune Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes product candidates for the treatment of peanut and other food allergies. The US$1.3b market-cap posted a loss in its most recent financial year of -US$210.8m and a latest trailing-twelve-month loss of -US$215.5m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which AIMT will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for AIMT’s growth and when analysts expect the company to become profitable.
See our latest analysis for Aimmune Therapeutics
AIMT is bordering on breakeven, according to the 9 Biotechs analysts. They expect the company to post a final loss in 2021, before turning a profit of US$240m in 2022. So, AIMT is predicted to breakeven approximately 3 years from now. What rate will AIMT have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 75%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving AIMT’s growth isn’t the focus of this broad overview, however, bear in mind that typically 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 I’d like to point out is that AIMT has managed its capital prudently, with debt making up 15% of equity. This means that AIMT has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on AIMT, so if you are interested in understanding the company at a deeper level, take a look at AIMT’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further research:
Historical Track Record: What has AIMT's 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aimmune Therapeutics’s board and the CEO’s back ground.
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
