Yahoo Finance Citius Pharmaceuticals, Inc.'s (NASDAQ:CTXR) Profit Outlook
With the business potentially at an important milestone, we thought we'd take a closer look at Citius Pharmaceuticals, Inc.'s (NASDAQ:CTXR) future prospects. Citius Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of critical care products focusing on anti-infective products in adjunct cancer care, prescription products, and mesenchymal stem cell therapy. The company’s loss has recently broadened since it announced a US$25m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$31m, moving it further away from breakeven. Many investors are wondering about the rate at which Citius Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Citius Pharmaceuticals
Consensus from 3 of the American Pharmaceuticals analysts is that Citius Pharmaceuticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$19m in 2024. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 61% is expected, which is rather optimistic! 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 Citius Pharmaceuticals given that this is a high-level summary, however, take into account that generally pharmaceuticals, 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’d like to point out is that Citius Pharmaceuticals has no debt on its balance sheet, which is rare for a loss-making pharma, 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 key fundamentals of Citius Pharmaceuticals 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 Citius Pharmaceuticals, take a look at Citius Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
Historical Track Record: What has Citius 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 Citius 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.
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