Published on 25 Sep 2021 on Simply Wall St. via Yahoo Finance

Loss-Making Osmotica Pharmaceuticals plc (NASDAQ:OSMT) Expected To Breakeven In The Medium-Term

Osmotica Pharmaceuticals plc (NASDAQ:OSMT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Osmotica Pharmaceuticals plc, an integrated biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products in the United States, Argentina, and Hungary. The US$262m market-cap company posted a loss in its most recent financial year of US$80m and a latest trailing-twelve-month loss of US$77m shrinking the gap between loss and breakeven. The most pressing concern for investors is Osmotica Pharmaceuticals' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Osmotica Pharmaceuticals

Expectations from some of the American Pharmaceuticals analysts is that Osmotica Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$3.2m in 2023. Therefore, the company is expected to breakeven roughly 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 69% 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.