With the business potentially at an important milestone, we thought we'd take a closer look at ARS Pharmaceuticals, Inc.'s (NASDAQ:SPRY) future prospects. ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. With the latest financial year loss of US$54m and a trailing-twelve-month loss of US$49m, the US$1.4b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which ARS Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for ARS Pharmaceuticals

Consensus from 4 of the American Biotechs analysts is that ARS Pharmaceuticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$5.9m in 2026. So, the company is predicted to breakeven approximately 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 57% 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.

Given this is a high-level overview, we won’t go into details of ARS Pharmaceuticals' upcoming projects, but, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. ARS Pharmaceuticals currently has no debt on its balance sheet, which is rare for a loss-making biotech, 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:

There are key fundamentals of ARS Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at ARS Pharmaceuticals, take a look at ARS Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Valuation: What is ARS Pharmaceuticals 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 ARS Pharmaceuticals 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 ARS Pharmaceuticals’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.