BioCryst Pharmaceuticals, Inc.'s (NASDAQ:BCRX) Profit Outlook

With the business potentially at an important milestone, we thought we'd take a closer look at BioCryst Pharmaceuticals, Inc.'s (NASDAQ:BCRX) future prospects. BioCryst Pharmaceuticals, Inc., a biotechnology company, develops oral small-molecule and injectable protein therapeutics to treat rare diseases. The US$1.5b market-cap company announced a latest loss of US$89m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which BioCryst Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

BioCryst Pharmaceuticals is bordering on breakeven, according to the 9 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$62m in 2026. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 56% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving BioCryst Pharmaceuticals' growth isn’t the focus of this broad overview, though, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

See our latest analysis for BioCryst Pharmaceuticals

Before we wrap up, there’s one issue worth mentioning. BioCryst 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.

Next Steps:

There are key fundamentals of BioCryst 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 BioCryst Pharmaceuticals, take a look at BioCryst Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on BioCryst Pharmaceuticals’s 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.