When Will Klaria Pharma Holding AB (publ.) (STO:KLAR) Breakeven?
We feel now is a pretty good time to analyse Klaria Pharma Holding AB (publ.)'s (STO:KLAR) business as it appears the company may be on the cusp of a considerable accomplishment. Klaria Pharma Holding AB (publ.), a pharmaceutical company develops and commercializes medication for migraine and cancer related pain, and opioid overdose and anaphylactic shock. The kr172m market-cap company posted a loss in its most recent financial year of kr48m and a latest trailing-twelve-month loss of kr46m shrinking the gap between loss and breakeven. The most pressing concern for investors is Klaria Pharma Holding AB (publ.)'s 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.
According to some industry analysts covering Klaria Pharma Holding AB (publ.), breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of kr12m in 2027. Therefore, the company is expected to breakeven just over a year from now. 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 80% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Klaria Pharma Holding AB (publ.) given that this is a high-level summary, but, 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.
See our latest analysis for Klaria Pharma Holding AB (publ.)
Before we wrap up, there’s one aspect worth mentioning. Klaria Pharma Holding AB (publ.) currently has no debt on its balance sheet, which is rare for a loss-making 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 Klaria Pharma Holding AB (publ.) 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 Klaria Pharma Holding AB (publ.), take a look at Klaria Pharma Holding AB (publ.)'s company page on Simply Wall St. We've also compiled a list of key factors you should further research:
- Historical Track Record: What has Klaria Pharma Holding AB (publ.)'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Klaria Pharma Holding AB (publ.)'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.
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.