Lysogene S.A.s (EPA:LYS): Lysogene S.A. engages in the research and clinical development of gene therapy for neurodegenerative disorders. The 64m market-cap company announced a latest loss of -4.3m on 31 December 2019 for its most recent financial year result. Many investors are wondering the rate at which LYS will turn a profit, with the big question being when will the company breakeven? Below I will provide a high-level summary of the industry analysts expectations for LYS.

Check out our latest analysis for Lysogene

According to the industry analysts covering LYS, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of 69m in 2022. LYS is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, I calculated the rate at which LYS must grow year-on-year. It turns out an average annual growth rate of 50% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, LYS may become profitable much later than analysts predict.

Im not going to go through company-specific developments for LYS given that this is a high-level summary, however, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing Id like to point out is that LYS has managed its capital judiciously, with debt making up 13% of equity. This means that LYS has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

There are too many aspects of LYS to cover in one brief article, but the key fundamentals for the company can all be found in one place LYSs company page on Simply Wall St. Ive also put together a list of relevant aspects you should further research:

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Lysogene S.A. (EPA:LYS): When Will It Breakeven? - Simply Wall St