Published on 24 Feb 2023 on Simply Wall St. via Yahoo Finance

Market Sentiment Around Loss-Making Novan, Inc. (NASDAQ:NOVN)

With the business potentially at an important milestone, we thought we'd take a closer look at Novan, Inc.'s (NASDAQ:NOVN) future prospects. Novan, Inc., a medical dermatology company, focuses on researching, developing, and commercializing therapeutic products for skin diseases. The company’s loss has recently broadened since it announced a US$30m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$37m, moving it further away from breakeven. The most pressing concern for investors is Novan's 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 Novan

Novan is bordering on breakeven, according to the 6 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$12m in 2025. The company is therefore projected to breakeven around 2 years from today. 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 60% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.