Yahoo Finance Analysts Are Optimistic We'll See A Profit From CASI Pharmaceuticals, Inc. (NASDAQ:CASI)
With the business potentially at an important milestone, we thought we'd take a closer look at CASI Pharmaceuticals, Inc.'s (NASDAQ:CASI) future prospects. 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$33m market-cap company announced a latest loss of US$27m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on CASI Pharmaceuticals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for CASI Pharmaceuticals
CASI Pharmaceuticals is bordering on breakeven, according to some American Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of US$37k in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% year-on-year, on average, 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 CASI Pharmaceuticals' growth isn’t the focus of this broad overview, but, take into account that typically biotechs, 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.
One thing we would like to bring into light with CASI Pharmaceuticals is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in CASI Pharmaceuticals' case is 78%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on CASI Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at CASI Pharmaceuticals' company page on Simply Wall St. We've also put together a list of key 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
