Yahoo Finance When Will Vivoryon Therapeutics N.V. (AMS:VVY) Turn A Profit?
With the business potentially at an important milestone, we thought we'd take a closer look at Vivoryon Therapeutics N.V.'s (AMS:VVY) future prospects. Vivoryon Therapeutics N.V., a clinical stage biopharmaceutical company, engages in the research, development, and commercialize small molecule-based medicines. The €199m market-cap company posted a loss in its most recent financial year of €28m and a latest trailing-twelve-month loss of €26m shrinking the gap between loss and breakeven. The most pressing concern for investors is Vivoryon Therapeutics' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Vivoryon Therapeutics
Consensus from 5 of the Dutch Biotechs analysts is that Vivoryon Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €5.3m in 2025. 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 66% is expected, 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 Vivoryon Therapeutics' growth isn’t the focus of this broad overview, though, bear in mind that by and large 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.
Before we wrap up, there’s one aspect worth mentioning. Vivoryon Therapeutics currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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 too many aspects of Vivoryon Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Vivoryon Therapeutics' company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Historical Track Record: What has Vivoryon Therapeutics' 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 Vivoryon Therapeutics' 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.
