Citius Pharmaceuticals, Inc. (NASDAQ:CTXR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Citius Pharmaceuticals, Inc., a late-stage biopharmaceutical company, engages in the development and commercialization of critical care products. The US$135m market-cap company posted a loss in its most recent financial year of US$34m and a latest trailing-twelve-month loss of US$37m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Citius Pharmaceuticals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

Citius Pharmaceuticals is bordering on breakeven, according to the 2 American Pharmaceuticals analysts. They expect the company to post a final loss in 2024, before turning a profit of US$4.0m in 2025. So, the company is predicted to breakeven just over a year 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 66% is expected, which signals high confidence from analysts. 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 Citius Pharmaceuticals given that this is a high-level summary, however, keep in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, 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 Citius Pharmaceuticals has no debt on its balance sheet, which is rare for a loss-making pharma, which usually has a high level of 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 key fundamentals of Citius Pharmaceuticals 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 Citius Pharmaceuticals, take a look at Citius Pharmaceuticals' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Historical Track Record: What has Citius Pharmaceuticals' 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 Citius Pharmaceuticals' 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com