We feel now is a pretty good time to analyse Blueprint Medicines Corporation's (NASDAQ:BPMC) business as it appears the company may be on the cusp of a considerable accomplishment. Blueprint Medicines Corporation, a precision therapy company, develops medicines for genomically defined cancers and blood disorders in the United States and internationally. The US$5.6b market-cap company announced a latest loss of US$507m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Blueprint Medicines' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Blueprint Medicines is bordering on breakeven, according to the 16 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$23m in 2026. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Blueprint Medicines given that this is a high-level summary, though, 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.

One thing we would like to bring into light with Blueprint Medicines is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Blueprint Medicines 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 Blueprint Medicines 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 Blueprint Medicines'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.