Yahoo Sport 
Loss-Making Myovant Sciences Ltd. (NYSE:MYOV) Expected To Breakeven In The Medium-Term
With the business potentially at an important milestone, we thought we'd take a closer look at Myovant Sciences Ltd.'s (NYSE:MYOV) future prospects. Myovant Sciences Ltd., a clinical-stage biopharmaceutical company, focuses on developing and commercializing therapies for women’s health and endocrine diseases. The US$1.3b market-cap company’s loss lessened since it announced a US$255m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$228m, as it approaches breakeven. Many investors are wondering about the rate at which Myovant Sciences will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Myovant Sciences
According to the 5 industry analysts covering Myovant Sciences, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$18m in 2024. The company is therefore projected to breakeven around 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 74% is expected, 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 Myovant Sciences' upcoming projects, though, take into account that typically 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 issue worth mentioning. Myovant Sciences currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Myovant Sciences 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 Myovant Sciences, take a look at Myovant Sciences' company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Valuation: What is Myovant Sciences 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 Myovant Sciences is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Myovant Sciences’s board and the CEO’s background.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
