KalVista Pharmaceuticals, Inc. (NASDAQ:KALV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. KalVista Pharmaceuticals, Inc., a clinical stage pharmaceutical company, engages in the discovery, development, and commercialization of small molecule protease inhibitors for diseases with unmet needs in the United States. The US$512m market-cap company posted a loss in its most recent financial year of US$93m and a latest trailing-twelve-month loss of US$108m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which KalVista Pharmaceuticals 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.

Consensus from 5 of the American Biotechs analysts is that KalVista Pharmaceuticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$28m in 2027. Therefore, the company is expected to breakeven roughly 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving KalVista Pharmaceuticals' growth isn't the focus of this broad overview, however, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there's one aspect worth mentioning. KalVista Pharmaceuticals currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is KalVista Pharmaceuticals 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 KalVista Pharmaceuticals is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on KalVista Pharmaceuticals's 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.