Published on 13 Sep 2023 on Simply Wall St. via Yahoo Finance

Reata Pharmaceuticals, Inc. (NASDAQ:RETA) Is Expected To Breakeven In The Near Future

Reata Pharmaceuticals, Inc. (NASDAQ:RETA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Reata Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, identifies, develops, and commercializes novel therapeutics for patients with serious or life-threatening diseases. With the latest financial year loss of US$312m and a trailing-twelve-month loss of US$88m, the US$6.5b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Reata Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Reata Pharmaceuticals

Reata Pharmaceuticals is bordering on breakeven, according to the 9 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$201m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 61% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.