We feel now is a pretty good time to analyse Citius Pharmaceuticals, Inc.'s (NASDAQ:CTXR) business as it appears the company may be on the cusp of a considerable accomplishment. Citius Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of critical care products. The US$20m market-cap company posted a loss in its most recent financial year of US$40m and a latest trailing-twelve-month loss of US$43m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Citius Pharmaceuticals' 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.

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Consensus from 2 of the American Pharmaceuticals analysts is that Citius Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$8.7m in 2025. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 50% year-on-year, on average, which signals high confidence from analysts. 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 Citius Pharmaceuticals given that this is a high-level summary, however, bear in mind 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Check out our latest analysis for Citius Pharmaceuticals

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 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 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 compiled a list of key factors you should look at:

1. Historical Track Record: What has Citius Pharmaceuticals' 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 Citius Pharmaceuticals' 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.