$SLS SLS +49% on announcing positive interim data from the prospective, randomized, single-blinded, controlled Phase 2b independent investigator-sponsored clinical trial of trastuzumab +/- nelipepimut-S in HER2 1+/2+ breast cancer patients in the adjuvant setting to prevent recurrences.
Loss-Making SELLAS Life Sciences Group Inc (NASDAQ:SLS) Expected To Breakeven
SELLAS Life Sciences Group Inc’s (NASDAQ:SLS): SELLAS Life Sciences Group, Inc., a development-stage biopharmaceutical company, focuses on the development of novel cancer immunotherapies for various cancer indications. With the latest financial year loss of -US$17.68M and a trailing-twelve month of -US$23.27M, the US$23.51M market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is SLS’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for SLS, its year of breakeven and its implied growth rate.
Check out our latest analysis for SELLAS Life Sciences Group
SLS is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2021, before turning a profit of US$20.03M in 2022. So, SLS is predicted to breakeven approximately 4 years from now. How fast will SLS have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 21.16% 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.
I’m not going to go through company-specific developments for SLS given that this is a high-level summary, however, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing I would like to bring into light with SLS is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are key fundamentals of SLS which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at SLS, take a look at SLS’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should further research:
Valuation: What is SLS worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether SLS is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on SELLAS Life Sciences Group’s board and the CEO’s back ground.
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.
Andrew Edmonds
,Simply Wall St.•March 29, 2018
Loss-Making SELLAS Life Sciences Group Inc (NASDAQ:SLS) Expected To Breakeven
SELLAS Life Sciences Group Inc’s (NASDAQ:SLS): SELLAS Life Sciences Group, Inc., a development-stage biopharmaceutical company, focuses on the development of novel cancer immunotherapies for various cancer indications. With the latest financial year loss of -US$17.68M and a trailing-twelve month of -US$23.27M, the US$23.51M market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is SLS’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for SLS, its year of breakeven and its implied growth rate.
Check out our latest analysis for SELLAS Life Sciences Group
SLS is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2021, before turning a profit of US$20.03M in 2022. So, SLS is predicted to breakeven approximately 4 years from now. How fast will SLS have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 21.16% 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.
I’m not going to go through company-specific developments for SLS given that this is a high-level summary, however, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing I would like to bring into light with SLS is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are key fundamentals of SLS which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at SLS, take a look at SLS’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should further research:
Valuation: What is SLS worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether SLS is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on SELLAS Life Sciences Group’s board and the CEO’s back ground.
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.
Andrew Edmonds
,Simply Wall St.•March 29, 2018
1
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