Yahoo Finance Loss-Making GlycoMimetics, Inc. (NASDAQ:GLYC) Expected To Breakeven In The Medium-Term
With the business potentially at an important milestone, we thought we'd take a closer look at GlycoMimetics, Inc.'s (NASDAQ:GLYC) future prospects. GlycoMimetics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of glycobiology-based therapies for cancers, including acute myeloid leukemia (AML) and inflammatory diseases with unmet needs in the United States. The US$193m market-cap company announced a latest loss of US$37m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is GlycoMimetics' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for GlycoMimetics
According to the 4 industry analysts covering GlycoMimetics, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$19m in 2026. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 63%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving GlycoMimetics' growth isn’t the focus of this broad overview, though, take into account that by and large 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 we’d like to point out is that GlycoMimetics has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of GlycoMimetics 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 GlycoMimetics, take a look at GlycoMimetics' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
Valuation: What is GlycoMimetics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether GlycoMimetics is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GlycoMimetics’s 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.
