Invivyd, Inc. (NASDAQ:IVVD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Invivyd, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of antibody-based solutions for infectious diseases in the United States. The company's loss has recently broadened since it announced a US$199m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$204m, moving it further away from breakeven. The most pressing concern for investors is Invivyd's 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.

Consensus from 4 of the American Biotechs analysts is that Invivyd is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$62m in 2026. So, the company is predicted to breakeven approximately 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 70% is expected, 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 Invivyd given that this is a high-level summary, though, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company 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 Invivyd has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, 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:

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

1. Valuation: What is Invivyd 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 Invivyd 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 Invivyd'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.