Published on 15 Mar 2024 on Simply Wall St. via Yahoo Finance

Loss-Making Karuna Therapeutics, Inc. (NASDAQ:KRTX) Expected To Breakeven In The Medium-Term

With the business potentially at an important milestone, we thought we'd take a closer look at Karuna Therapeutics, Inc.'s (NASDAQ:KRTX) future prospects. Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, creates and delivers transformative medicines for people living with psychiatric and neurological conditions. The US$12b market-cap company announced a latest loss of US$434m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Karuna Therapeutics' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Karuna Therapeutics

According to the 16 industry analysts covering Karuna Therapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$71m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 61% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.