Yahoo Finance Analysts Expect Breakeven For CASI Pharmaceuticals, Inc. (NASDAQ:CASI) Before Long
CASI Pharmaceuticals, Inc. (NASDAQ:CASI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People’s Republic of China, the United States, and internationally. The US$60m market-cap company posted a loss in its most recent financial year of US$41m and a latest trailing-twelve-month loss of US$41m shrinking the gap between loss and breakeven. The most pressing concern for investors is CASI Pharmaceuticals' path to profitability – when will it 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 CASI Pharmaceuticals
Expectations from some of the American Biotechs analysts is that CASI Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$37m in 2024. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 64% year-on-year, on average, which is rather optimistic! 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 CASI Pharmaceuticals' upcoming projects, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. 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 CASI Pharmaceuticals 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of CASI Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – CASI Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Historical Track Record: What has CASI Pharmaceuticals' 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 CASI Pharmaceuticals' board and the CEO’s background.
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.
