Loss-Making Protalix BioTherapeutics, Inc. (NYSEMKT:PLX) Expected To Breakeven
NYSEMKT:PLX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Protalix BioTherapeutics, Inc., a biopharmaceutical company, focuses on the development, production, and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in Israel and internationally. With the latest financial year loss of US$18.3m and a trailing-twelve-month loss of US$5.8m, the US$124m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Protalix BioTherapeutics’ investors mind, we’ve decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.” data-reactid=”28″>Protalix BioTherapeutics, Inc. (NYSEMKT:PLX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Protalix BioTherapeutics, Inc., a biopharmaceutical company, focuses on the development, production, and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in Israel and internationally. With the latest financial year loss of US$18.3m and a trailing-twelve-month loss of US$5.8m, the US$124m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Protalix BioTherapeutics’ investors mind, we’ve decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Protalix BioTherapeutics ” data-reactid=”29″> View our latest analysis for Protalix BioTherapeutics
According to the 2 industry analysts covering Protalix BioTherapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$44m in 2021. Therefore, the company is expected to breakeven just over a year from today. 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 45% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Protalix BioTherapeutics’ upcoming projects, however, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Protalix BioTherapeutics 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:
Protalix BioTherapeutics’ company page on Simply Wall St. We’ve also put together a list of relevant aspects you should look at:” data-reactid=”50″>There are key fundamentals of Protalix BioTherapeutics 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 Protalix BioTherapeutics, take a look at Protalix BioTherapeutics’ company page on Simply Wall St. We’ve also put together a list of relevant aspects you should look at:
- Historical Track Record: What has Protalix BioTherapeutics’ 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 Protalix BioTherapeutics’ 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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