In This Article:
We feel now is a pretty good time to analyse Unicycive Therapeutics, Inc.'s (NASDAQ:UNCY) business as it appears the company may be on the cusp of a considerable accomplishment. Unicycive Therapeutics, Inc., a clinical-stage biotechnology company, identifies, develops, and commercializes therapies to address unmet medical needs in the United States. The US$78m market-cap company announced a latest loss of US$38m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Unicycive Therapeutics will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Unicycive Therapeutics is bordering on breakeven, according to the 7 American Biotechs analysts. They expect the company to post a final loss in 2025, before turning a profit of US$206m in 2026. So, the company is predicted 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 40%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Unicycive Therapeutics' growth isn’t the focus of this broad overview, but, bear in mind that typically biotechs, 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.
View our latest analysis for Unicycive Therapeutics
Before we wrap up, there’s one aspect worth mentioning. Unicycive Therapeutics currently 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 too many aspects of Unicycive Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Unicycive Therapeutics' company page on Simply Wall St. We've also put together a list of key aspects you should further research: