Explore Aytu BioPharma's Fair Values from the Community and select yours
With the business potentially at an important milestone, we thought we'd take a closer look at Aytu BioPharma, Inc.'s (NASDAQ:AYTU) future prospects. Aytu BioPharma, Inc., a pharmaceutical company, focuses on commercializing novel therapeutics in the United States and internationally. The US$20m market-cap company's loss lessened since it announced a US$16m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.0m, as it approaches breakeven. Many investors are wondering about the rate at which Aytu BioPharma will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts' expectations for the company.
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Consensus from 3 of the American Pharmaceuticals analysts is that Aytu BioPharma is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$13m in 2027. So, the company is predicted to breakeven approximately 2 years from today. 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 52%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won't go into details of Aytu BioPharma's upcoming projects, though, take into account that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
View our latest analysis for Aytu BioPharma
Before we wrap up, there's one issue worth mentioning. Aytu BioPharma currently has a relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Aytu BioPharma's case is 61%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
There are too many aspects of Aytu BioPharma to cover in one brief article, but the key fundamentals for the company can all be found in one place - Aytu BioPharma's company page on Simply Wall St. We've also put together a list of essential aspects you should further research: