With the business potentially at an important milestone, we thought we'd take a closer look at GlycoMimetics, Inc.'s (NASDAQ:GLYC) future prospects. GlycoMimetics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of novel glycomimetic drugs to address unmet medical needs resulting from diseases in the United States. The US$80m market-cap company posted a loss in its most recent financial year of US$63m and a latest trailing-twelve-month loss of US$54m shrinking the gap between loss and breakeven. The most pressing concern for investors is GlycoMimetics' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for GlycoMimetics

GlycoMimetics is bordering on breakeven, according to the 3 American Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$25m in 2025. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving GlycoMimetics' growth isn't the focus of this broad overview, but, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. 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. GlycoMimetics currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on GlycoMimetics, so if you are interested in understanding the company at a deeper level, take a look at GlycoMimetics' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has GlycoMimetics' 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GlycoMimetics' 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.

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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.