Breakeven On The Horizon For CorMedix Inc. (NASDAQ:CRMD)

CorMedix Inc. (NASDAQ:CRMD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CorMedix Inc., a biopharmaceutical company, focuses on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases in the United States. The US$233m market-cap company announced a latest loss of US$46m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on CorMedix's 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 CorMedix

According to the 4 industry analysts covering CorMedix, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$6.7m in 2025. The company is therefore projected 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% 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.

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We're not going to go through company-specific developments for CorMedix given that this is a high-level summary, though, take into account that by and large pharmaceuticals, 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 CorMedix has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which usually has a high level of 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 key fundamentals of CorMedix 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 CorMedix, take a look at CorMedix's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Historical Track Record: What has CorMedix'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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CorMedix'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.

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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.