Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Citius Pharmaceuticals, Inc., a late-stage pharmaceutical company, engages in the development and commercialization of critical care products focusing on oncology products, anti-infectives products in adjunct cancer care, prescription products, and stem cell therapy. The US$148m market-cap company posted a loss in its most recent financial year of US$34m and a latest trailing-twelve-month loss of US$31m shrinking the gap between loss and breakeven. As path to profitability is the topic on Citius Pharmaceuticals' 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 Citius Pharmaceuticals

According to the 3 industry analysts covering Citius Pharmaceuticals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$45m in 2025. 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which is extremely buoyant. 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 Citius Pharmaceuticals given that this is a high-level summary, though, take into account that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Citius Pharmaceuticals has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, 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 Citius Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at Citius Pharmaceuticals' company page on Simply Wall St. We've also put together a list of essential factors you should further research: