Published on 9 Nov 2023 on Simply Wall St. via Yahoo Finance

Cassava Sciences, Inc. (NASDAQ:SAVA): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Cassava Sciences, Inc.'s (NASDAQ:SAVA) future prospects. Cassava Sciences, Inc., a clinical stage biotechnology company, develops drugs for neurodegenerative diseases. With the latest financial year loss of US$76m and a trailing-twelve-month loss of US$95m, the US$940m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Cassava Sciences' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Cassava Sciences

Expectations from some of the American Pharmaceuticals analysts is that Cassava Sciences is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$56m in 2024. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 158% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.