NASDAQ:BXRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Baudax Bio, Inc., a pharmaceutical company, develops and commercializes products for hospital and other acute care settings. The US$48m market-cap company posted a loss in its most recent financial year of US$32.6m and a latest trailing-twelve-month loss of US$88.4m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Baudax Bio’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″>Baudax Bio, Inc. (NASDAQ:BXRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Baudax Bio, Inc., a pharmaceutical company, develops and commercializes products for hospital and other acute care settings. The US$48m market-cap company posted a loss in its most recent financial year of US$32.6m and a latest trailing-twelve-month loss of US$88.4m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Baudax Bio’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.
See our latest analysis for Baudax Bio ” data-reactid=”29″>See our latest analysis for Baudax Bio
According to the 3 industry analysts covering Baudax Bio, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$42m in 2023. The company is therefore projected to breakeven around 3 years 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 68%, 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 Baudax Bio given that this is a high-level summary, but, keep in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we would like to bring into light with Baudax Bio is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
Baudax Bio’s company page on Simply Wall St. We’ve also put together a list of essential factors you should further research:” data-reactid=”50″>There are too many aspects of Baudax Bio to cover in one brief article, but the key fundamentals for the company can all be found in one place – Baudax Bio’s company page on Simply Wall St. We’ve also put together a list of essential factors you should further research:
- Historical Track Record: What has Baudax Bio’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 Baudax Bio’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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