Annexin Pharmaceuticals AB (publ)'s (STO:ANNX) Shift From Loss To Profit
Annexin Pharmaceuticals AB (publ) (STO:ANNX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Annexin Pharmaceuticals AB (publ), a biotechnology company, develops drug candidates for the treatment of various cardiovascular diseases. With the latest financial year loss of kr50m and a trailing-twelve-month loss of kr39m, the kr143m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Annexin Pharmaceuticals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Expectations from some of the Swedish Pharmaceuticals analysts is that Annexin Pharmaceuticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr24m in 2026. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow -1.2% year-on-year, on average,
We're not going to go through company-specific developments for Annexin Pharmaceuticals given that this is a high-level summary, though, bear in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for Annexin Pharmaceuticals
One thing we’d like to point out is that Annexin Pharmaceuticals 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. 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 Annexin 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 Annexin Pharmaceuticals, take a look at Annexin Pharmaceuticals' company page on Simply Wall St. We've also put together a list of important aspects you should further research:
- Historical Track Record: What has Annexin 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 Annexin 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.
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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.