Published on 19 May 2022 on Simply Wall St. via Yahoo Finance

Breakeven On The Horizon For ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)

With the business potentially at an important milestone, we thought we'd take a closer look at ACADIA Pharmaceuticals Inc.'s (NASDAQ:ACAD) future prospects. ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. With the latest financial year loss of US$168m and a trailing-twelve-month loss of US$214m, the US$2.8b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on ACADIA Pharmaceuticals' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for ACADIA Pharmaceuticals

Consensus from 21 of the American Biotechs analysts is that ACADIA Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$101m in 2024. 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 78% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.