G1 Therapeutics, Inc. (NASDAQ:GTHX) is expected to reach breakeven in the near future

We believe this is the perfect time to analyze G1 Therapeutics, Inc. (NASDAQ: GTHX) the company, as it appears the company is on the cusp of a huge accomplishment. G1 Therapeutics, Inc., a commercial-stage biopharmaceutical company, is engaged in the discovery, development and commercialization of small molecule therapeutics for the treatment of cancer patients in the United States. The $118 million market cap company's loss has narrowed since it reported a full-year loss of $48 million, compared to its last loss of $31 million in the last twelve months, as it approaches the break-even point. Many investors are wondering how quickly G1 Therapeutics will turn a profit, with the big question being “when will the company break even?” » In this article, we'll discuss the company's growth expectations and when analysts expect it to become profitable.

Check out our latest analysis for G1 Therapeutics

According to the consensus of 5 American biotechnology analysts, G1 Therapeutics is close to breaking even. They expect the company to post a final loss in 2025, before making a profit of $185 million in 2026. The company is therefore expected to break even in about 2 years from today . What growth rate will the company need to achieve from year to year to break even on that date? Using a line of best fit, we calculated an average annual growth rate of 49%, which is extremely dynamic. If the business is growing at a slower rate, it will become profitable at a later date than expected.

The underlying developments driving G1 Therapeutics' growth are not the focus of this general overview, but consider that in general a biotech has irregular cash flows that depend on the type of product and stage of development. development in which the company finds itself. a high growth rate is not unusual, especially if the company is currently in an investment period.

Before concluding, it is worth mentioning one point. G1 Therapeutics currently has a debt ratio of 155%. As a general rule, debt should not exceed 40% of equity, which in this case is far exceeded by the company. Note that higher debt increases the risk of investing in a loss-making company.

Next steps:

This article is not intended to be a comprehensive analysis of G1 Therapeutics, so if you want to understand the company on a deeper level, take a look at G1 Therapeutics' company page on Simply Wall St. We have also compiled a list of essential aspects that you should further research:

1. Assessment:What is G1 Therapeutics' current value? Has the potential for future growth already been factored into the price? Our free research report's intrinsic value infographic helps visualize whether G1 Therapeutics is currently misvalued by the market.
2. Management team:An experienced management team at the helm increases our confidence in the company – take a look at G1 Therapeutics' board members and CEO's background.
3. Other high-performing stocks:Are there other actions with better prospects and proven success? Check out our free list of these great stocks here.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative elements. Simply Wall St has no position in any of the stocks mentioned.

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