With the business potentially at an important milestone, we thought we'd take a closer look at Citius Pharmaceuticals, Inc.'s (NASDAQ:CTXR) future prospects. Citius Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of critical care products. The US$26m market-cap company posted a loss in its most recent financial year of US$34m and a latest trailing-twelve-month loss of US$40m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Citius Pharmaceuticals will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 3 of the American Pharmaceuticals analysts is that Citius Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$90m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 53% year-on-year, on average, which is rather optimistic! 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 Citius Pharmaceuticals' upcoming projects, however, take into account that by and large pharmaceuticals, 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 aspect worth mentioning. Citius Pharmaceuticals currently has no debt on its balance sheet, which is rare for a loss-making pharma, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Citius Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Citius Pharmaceuticals' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Valuation: What is Citius Pharmaceuticals 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 Citius Pharmaceuticals 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 Citius Pharmaceuticals'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.