Altimmune, Inc.'s (NASDAQ:ALT) Path To Profitability
NASDAQ:ALT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Altimmune, Inc., a clinical stage biopharmaceutical company, focused developing treatments for liver disease, immune modulating therapies, and vaccines. The company’s loss has recently broadened since it announced a US$21.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$35.7m, moving it further away from breakeven. The most pressing concern for investors is Altimmune’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.” data-reactid=”28″>Altimmune, Inc. (NASDAQ:ALT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Altimmune, Inc., a clinical stage biopharmaceutical company, focused developing treatments for liver disease, immune modulating therapies, and vaccines. The company’s loss has recently broadened since it announced a US$21.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$35.7m, moving it further away from breakeven. The most pressing concern for investors is Altimmune’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.
View our latest analysis for Altimmune ” data-reactid=”29″> View our latest analysis for Altimmune
Consensus from 3 of the American Biotechs analysts is that Altimmune is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$79m in 2021. The company is therefore projected 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 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We’re not going to go through company-specific developments for Altimmune given that this is a high-level summary, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.8% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
Altimmune’s company page on Simply Wall St. We’ve also put together a list of essential factors you should further research:” data-reactid=”50″>This article is not intended to be a comprehensive analysis on Altimmune, so if you are interested in understanding the company at a deeper level, take a look at Altimmune’s company page on Simply Wall St. We’ve also put together a list of essential factors you should further research:
- Valuation: What is Altimmune worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Altimmune is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Altimmune’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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. 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.
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