UroGen Pharma Ltd. (NASDAQ:URGN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. UroGen Pharma Ltd., a biotechnology company, engages in the development and commercialization of solutions for urothelial and specialty cancers. With the latest financial year loss of US$102m and a trailing-twelve-month loss of US$115m, the US$454m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is UroGen Pharma's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for UroGen Pharma

According to the 7 industry analysts covering UroGen Pharma, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$26m in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 67% is expected, 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.

Given this is a high-level overview, we won’t go into details of UroGen Pharma's upcoming projects, but, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. 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 issue worth mentioning. UroGen Pharma currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of UroGen Pharma 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 UroGen Pharma, take a look at UroGen Pharma's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is UroGen Pharma 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 UroGen Pharma 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 UroGen Pharma’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.