Published on 30 Jul 2021 on Simply Wall St. via Yahoo Finance

When Will Chiasma, Inc. (NASDAQ:CHMA) Breakeven?

Chiasma, Inc. (NASDAQ:CHMA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Chiasma, Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing oral medications using transient permeability enhancer technology platform for the treatment of rare and serious chronic disease worldwide. The US$240m market-cap company posted a loss in its most recent financial year of US$75m and a latest trailing-twelve-month loss of US$90m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Chiasma 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 Chiasma

Consensus from 5 of the American Pharmaceuticals analysts is that Chiasma is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$16m in 2023. 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 68% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.