Tevogen Bio Holdings Inc. (NASDAQ:TVGN): Is Breakeven Near?
Tevogen Bio Holdings Inc. (NASDAQ:TVGN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tevogen Bio Holdings Inc., a clinical-stage specialty immunotherapy company, develops off-the-shelf precision T cell therapies for the treatment of infectious diseases, cancers, and other disorders. With the latest financial year loss of US$10m and a trailing-twelve-month loss of US$31m, the US$69m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Tevogen Bio Holdings' 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 Tevogen Bio Holdings, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$259m in 2027. Therefore, the company is expected to breakeven just over a year from now. 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 52%, 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 Tevogen Bio Holdings' growth isn’t the focus of this broad overview, though, take into account that generally 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.
See our latest analysis for Tevogen Bio Holdings
One thing we would like to bring into light with Tevogen Bio Holdings is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Tevogen Bio Holdings 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 Tevogen Bio Holdings, take a look at Tevogen Bio Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
- Historical Track Record: What has Tevogen Bio Holdings' 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 Tevogen Bio Holdings' 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.