Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN): Is it nearing the breakeven point?

With the company potentially at an important milestone, we thought we would take a closer look Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN) future prospects. Biohaven Pharmaceutical Holding Company Ltd., a biopharmaceutical company, is developing product candidates targeting neurological diseases and rare diseases in the United States. The $ 5.5 billion market-capitalization company recorded a loss in its last year of $ 767 million and a last year-over-year loss of $ 859 million, resulting in an even larger gap between the loss and profitable level. The most pressing concern for investors is Biohaven Pharmaceutical Holding’s path to profitability – when will it break even? Below, we’ll provide a high-level summary of industry analyst expectations for the company.

See our latest analysis for Biohaven Pharmaceutical Holding

The consensus of 12 US analysts at Biotechs is that Biohaven Pharmaceutical Holding is on the verge of breaking even. They expect the company to make a terminal loss in 2023, before making a profit of $ 326 million in 2024. So the company is expected to break even in about 3 years. How fast will the company have to grow from year to year to reach equilibrium by this date? Using a line of best fit, we calculated an average annual growth rate of 69%, indicating high analyst confidence. If the business grows at a slower pace, it will become profitable later than expected.

NYSE: BHVN Earnings Per Share Growth June 2, 2021

Since this is a high-level overview, we won’t go into details of Biohaven Pharmaceutical Holding’s upcoming projects, however, keep in mind that overall, a biotechnology has Lumpy cash flow that depends on the type of product and the stage of development the product is in place. Thus, a high growth rate is not unusual, especially when a company is in the period of investment.

One thing we would like to highlight with Biohaven Pharmaceutical Holding is that it currently has negative equity on its balance sheet. The accounting methods used to deal with losses accumulated over time can cause this. In effect, liabilities are carried forward until their cancellation. These losses tend to occur only on paper, however, in other cases this can be a warning.

Next steps:

There are too many aspects of Biohaven Pharmaceutical Holding to cover in a short article, but the fundamentals of the company can all be found in one place – the Biohaven Pharmaceutical Holding company page on Simply Wall St. have also put together a list of key factors you should dig into:

  1. Evaluation: What is Biohaven Pharmaceutical Holding worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Biohaven Pharmaceutical Holding is currently poorly valued by the market.
  2. Management team: An experienced management team at the helm increases our confidence in the company – look at who sits on the board of directors of Biohaven Pharmaceutical Holding and the CEO’s background.
  3. Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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