RenovoRx, Inc. (NASDAQ:RNXT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. RenovoRx, Inc., a clinical-stage biopharmaceutical company, focuses on developing proprietary targeted combination therapies to improve therapeutic outcomes for cancer patients undergoing treatment. With the latest financial year loss of US$10m and a trailing-twelve-month loss of US$9.2m, the US$37m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is RenovoRx's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for RenovoRx

Consensus from 3 of the American Biotechs analysts is that RenovoRx is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$15m in 2027. 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 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving RenovoRx's growth isn’t the focus of this broad overview, but, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. RenovoRx currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of 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 too many aspects of RenovoRx to cover in one brief article, but the key fundamentals for the company can all be found in one place – RenovoRx's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has RenovoRx's 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 RenovoRx'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.