With the business potentially at an important milestone, we thought we'd take a closer look at ADMA Biologics, Inc.'s (NASDAQ:ADMA) future prospects. ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. With the latest financial year loss of US$72m and a trailing-twelve-month loss of US$70m, the US$683m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on ADMA Biologics' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for ADMA Biologics

Consensus from 3 of the American Biotechs analysts is that ADMA Biologics is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$22m in 2024. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 59% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for ADMA Biologics given that this is a high-level summary, but, keep in mind that generally 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.

One thing we would like to bring into light with ADMA Biologics is its debt-to-equity ratio of 141%. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of ADMA Biologics to cover in one brief article, but the key fundamentals for the company can all be found in one place – ADMA Biologics' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is ADMA Biologics 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 ADMA Biologics 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 ADMA Biologics'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.