We feel now is a pretty good time to analyse Unicycive Therapeutics, Inc.'s (NASDAQ:UNCY) business as it appears the company may be on the cusp of a considerable accomplishment. Unicycive Therapeutics, Inc., a biotechnology company, develops treatments for various medical conditions in the United States. The US$61m market-cap company posted a loss in its most recent financial year of US$31m and a latest trailing-twelve-month loss of US$24m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Unicycive Therapeutics 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.

View our latest analysis for Unicycive Therapeutics

Unicycive Therapeutics is bordering on breakeven, according to the 6 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$213m in 2026. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 59%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Unicycive Therapeutics' growth isn’t the focus of this broad overview, however, take into account 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. 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. Unicycive Therapeutics currently 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:

There are key fundamentals of Unicycive Therapeutics 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 Unicycive Therapeutics, take a look at Unicycive Therapeutics' company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is Unicycive Therapeutics 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 Unicycive Therapeutics 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 Unicycive Therapeutics’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.

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

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.