Yahoo Finance Cellectar Biosciences, Inc. (NASDAQ:CLRB): When Will It Breakeven?
We feel now is a pretty good time to analyse Cellectar Biosciences, Inc.'s (NASDAQ:CLRB) business as it appears the company may be on the cusp of a considerable accomplishment. Cellectar Biosciences, Inc., a clinical biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs for the treatment of cancer. The US$111m market-cap company announced a latest loss of US$38m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Cellectar Biosciences' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Cellectar Biosciences
Consensus from 4 of the American Biotechs analysts is that Cellectar Biosciences is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$14m in 2026. So, the company is predicted to breakeven approximately 2 years 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 61% is expected, 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 Cellectar Biosciences given that this is a high-level summary, however, take into account that typically 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.
One thing we would like to bring into light with Cellectar Biosciences is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Cellectar Biosciences to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cellectar Biosciences' company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has Cellectar Biosciences' 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Cellectar Biosciences' 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.
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.
