With the business potentially at an important milestone, we thought we'd take a closer look at POINT Biopharma Global Inc.'s (NASDAQ:PNT) future prospects. POINT Biopharma Global Inc., a radiopharmaceutical company, focuses on the development and commercialization of radioligands that fight cancer. The US$770m market-cap company posted a loss in its most recent financial year of US$46m and a latest trailing-twelve-month loss of US$79m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which POINT Biopharma Global 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.

View our latest analysis for POINT Biopharma Global

POINT Biopharma Global is bordering on breakeven, according to the 11 American Biotechs analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$22m in 2024. The company is therefore projected to breakeven just over a year 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 31% 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 POINT Biopharma Global given that this is a high-level summary, but, 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'd like to point out is that POINT Biopharma Global 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. 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 POINT Biopharma Global, so if you are interested in understanding the company at a deeper level, take a look at POINT Biopharma Global's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is POINT Biopharma Global 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 POINT Biopharma Global 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 POINT Biopharma Global'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.