Phio Pharmaceuticals Corp. (NASDAQ:PHIO): Is Breakeven Near?

Phio Pharmaceuticals Corp. (NASDAQ:PHIO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Phio Pharmaceuticals Corp. engages in the development of immuno-oncology therapeutics in the United States. The US$2.5m market-cap company posted a loss in its most recent financial year of US$11m and a latest trailing-twelve-month loss of US$8.7m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Phio Pharmaceuticals 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.

View our latest analysis for Phio Pharmaceuticals

According to some industry analysts covering Phio Pharmaceuticals, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$48m in 2025. Therefore, the company is expected 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 183%, which signals high confidence from analysts. 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 Phio Pharmaceuticals given that this is a high-level summary, however, keep 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Phio Pharmaceuticals has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Phio Pharmaceuticals 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 Phio Pharmaceuticals, take a look at Phio Pharmaceuticals' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Historical Track Record: What has Phio Pharmaceuticals' 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Phio Pharmaceuticals' board and the CEO’s background.
3. 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.