With the business potentially at an important milestone, we thought we'd take a closer look at Theralase Technologies Inc.'s (CVE:TLT) future prospects. Theralase Technologies Inc., a clinical stage pharmaceutical company, engages in the research and development of light activated photo dynamic compounds (PDCs) and their associated drug formulations to treat cancers, bacteria, and viruses in Canada, the United States, and internationally. The CA$38m market-cap company announced a latest loss of CA$4.6m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Theralase Technologies' path to profitability – when will it 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 Theralase Technologies

Theralase Technologies is bordering on breakeven, according to some Canadian Medical Equipment analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of CA$5.5m in 2026. Therefore, the company is expected to breakeven roughly 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 65% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Theralase Technologies given that this is a high-level summary, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Theralase Technologies has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Theralase Technologies, so if you are interested in understanding the company at a deeper level, take a look at Theralase Technologies' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Theralase Technologies' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Theralase Technologies' 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.