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We feel now is a pretty good time to analyse Fennec Pharmaceuticals Inc.'s (NASDAQ:FENC) business as it appears the company may be on the cusp of a considerable accomplishment. Fennec Pharmaceuticals Inc. operates as a commercial stage biopharmaceutical company in the United States. The US$145m market-cap company announced a latest loss of US$436k on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Fennec Pharmaceuticals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Fennec Pharmaceuticals is bordering on breakeven, according to the 5 American Biotechs analysts. They expect the company to post a final loss in 2024, before turning a profit of US$1.8m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 48% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Fennec Pharmaceuticals' 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. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
View our latest analysis for Fennec Pharmaceuticals
Before we wrap up, there’s one issue worth mentioning. Fennec Pharmaceuticals 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.
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This article is not intended to be a comprehensive analysis on Fennec Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at Fennec Pharmaceuticals' company page on Simply Wall St. We've also put together a list of relevant factors you should look at: