With the business potentially at an important milestone, we thought we'd take a closer look at Nabriva Therapeutics plc's (NASDAQ:NBRV) future prospects. Nabriva Therapeutics plc, a biopharmaceutical company, engages in the development and commercialization of novel anti-infective agents to treat serious infections. With the latest financial year loss of US$69m and a trailing-twelve-month loss of US$60m, the US$72m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Nabriva Therapeutics will turn a profit, with the big question being “when will the company breakeven?” 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 Nabriva Therapeutics

Consensus from 3 of the American Pharmaceuticals analysts is that Nabriva Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$398k in 2023. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Nabriva Therapeutics given that this is a high-level summary, but, keep in mind that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 11% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Nabriva Therapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Nabriva Therapeutics, take a look at Nabriva Therapeutics' company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Historical Track Record: What has Nabriva Therapeutics' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nabriva Therapeutics' board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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