With the business potentially at an important milestone, we thought we'd take a closer look at Ensysce Biosciences, Inc.'s (NASDAQ:ENSC) future prospects. Ensysce Biosciences, Inc., a clinical-stage pharmaceutical company, engages in developing various prescription drugs for severe pain relief in opioid misuse, abuse, and overdose in the United States. The US$9.0m market-cap company’s loss lessened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.9m, as it approaches breakeven. The most pressing concern for investors is Ensysce Biosciences' 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.

View our latest analysis for Ensysce Biosciences

According to the 2 industry analysts covering Ensysce Biosciences, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$28m in 2026. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 103%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Ensysce Biosciences' growth isn’t the focus of this broad overview, however, 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. The company has managed its capital prudently, with debt making up 5.9% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Ensysce Biosciences, so if you are interested in understanding the company at a deeper level, take a look at Ensysce Biosciences' company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Historical Track Record: What has Ensysce Biosciences' 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 Ensysce Biosciences' 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.