Alphamab Oncology (HKG:9966) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Alphamab Oncology, a clinical stage biopharmaceutical company, engages in the research and development, manufacture, and commercialization of oncology biologics. The HK$3.3b market-cap company posted a loss in its most recent financial year of CN¥211m and a latest trailing-twelve-month loss of CN¥216m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Alphamab Oncology's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Alphamab Oncology
Consensus from 3 of the Hong Kong Biotechs analysts is that Alphamab Oncology is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥201m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 70% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Alphamab Oncology 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.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 20% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Alphamab Oncology 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 Alphamab Oncology, take a look at Alphamab Oncology's company page on Simply Wall St. We've also put together a list of important factors you should further research:
- Valuation: What is Alphamab Oncology 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 Alphamab Oncology is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Alphamab Oncology’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.
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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.