Brii Biosciences Limited (HKG:2137) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Brii Biosciences Limited engages in the development of medicines for the treatment of infectious and central nervous system diseases. The HK$4.4b market-cap company posted a loss in its most recent financial year of CN¥4.2b and a latest trailing-twelve-month loss of CN¥1.6b shrinking the gap between loss and breakeven. As path to profitability is the topic on Brii Biosciences' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Brii Biosciences

Consensus from 5 of the Hong Kong Biotechs analysts is that Brii Biosciences is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of CN¥447m in 2023. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% 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.

Given this is a high-level overview, we won't go into details of Brii Biosciences' upcoming projects, though, bear in mind that by and large 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. Brii Biosciences currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of 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 Brii Biosciences, so if you are interested in understanding the company at a deeper level, take a look at Brii Biosciences' company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

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