Market Sentiment Around Data Loss Paradigm Biopharmaceuticals Limited (ASX: PAR)
We think now is the right time to analyze Paradigm Biopharmaceuticals Limited (ASX: PAR) because it looks like the company is on the cusp of a huge accomplishment. Paradigm Biopharmaceuticals Limited, a drug conversion company, is engaged in the research and development of therapeutics for human use in Australia. On June 30, 2021, the company with a market capitalization of A $ 482 million recorded a loss of A $ 34 million for its most recent financial year. Many investors wonder about Paradigm Biopharmaceuticals’ rate of profit, the big question being “when does the company break even?” In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.
Check out our latest review for Paradigm Biopharmaceuticals
According to the 2 industry analysts covering Paradigm Biopharmaceuticals, the consensus is that the breakeven point is near. They predict that the company will experience a terminal loss in 2023, before generating positive profits of AU $ 38 million in 2024. Therefore, the company is expected to break even in about 3 years. How fast will the company have to grow from one year to the next to reach equilibrium on that date? Using a line of best fit, we calculated an average annual growth rate of 41%, which is extremely strong. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
The developments underlying Paradigm Biopharmaceuticals’ growth are not the focus of this general overview, however, keep in mind that biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that the great growth rates to come are not abnormal, as the business begins to reap the rewards of past investments.
One thing we would like to point out is that Paradigm Biopharmaceuticals 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 solely on funding from its shareholders and has no debt, reducing concerns about repayments and making it a less risky investment.
This article is not intended to be a comprehensive review of Paradigm Biopharmaceuticals, so if you want to understand the business on a deeper level, take a look at the Paradigm Biopharmaceuticals company page on Simply Wall St. We also have made a list of key factors that you should consider further:
- Historical review: How has Paradigm Biopharmaceuticals performed in the past? Go deeper into the background analysis and take a look at the free visual representations of our analysis for clarity.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at the members of the Paradigm Biopharmaceuticals Board of Directors and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St does not have any position in the mentioned stocks.
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