We think now is a good time to analyze SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) business as it appears that the company is on the verge of considerable success. SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, is engaged in the development and commercialization of drugs for underserved patient populations suffering from rare diseases and cancer. With a loss of $325 million in the last fiscal year and a loss of $339 million in the trailing twelve months, the $2.5 billion market cap company has widened its loss by moving further away from its break-even target. The most pressing concern among investors is SpringWorks Therapeutics’ path to profitability – when will the company break even? We’ve put together a quick overview of industry analysts’ expectations for the company, its break-even year, and its implied growth rate.

Check out our latest analysis for SpringWorks Therapeutics

According to the 7 industry analysts that cover SpringWorks Therapeutics, the consensus is that the breakeven point is near. They expect the company to report a final loss in 2025 before making a profit of $27 million in 2026. So, the company is forecast to break even in about 2 years. How fast does the company need to grow each year to break even by 2026? Going by the analyst estimates, the company is expected to grow at an average rate of 57% year-on-year, which is quite optimistic! Should the company grow at a slower rate, it will become profitable at a later date than expected.

Since this is a high-level overview, we won’t go into detail about SpringWorks Therapeutics’ upcoming projects. However, keep in mind that biotech companies, by and large, have irregular cash flow periods depending on the stage of product development, so a high growth rate is not unusual, especially when a company is in an investment phase.

We would like to point out that SpringWorks Therapeutics has no debt on its balance sheet, which is quite unusual for a cash-burning biotech company that usually has a high level of debt relative to its equity. This means that the company operates solely on the basis of its equity investments and has no debt burden. This aspect reduces the risk of investing in the loss-making company.

Next Steps:

There are too many aspects of SpringWorks Therapeutics to cover in a short article, but the most important fundamentals of the company can be found all in one place – the SpringWorks Therapeutics company page on Simply Wall St. We’ve also compiled a list of relevant factors that you should examine in more detail:

1. Historical performance record: How has SpringWorks Therapeutics performed in the past? Go into more detail in the analysis of its past track record and take a look at the free visual representations of our analysis for more clarity.
2. Leadership team: Having an experienced management team at the top gives us confidence in the company – see who sits on SpringWorks Therapeutics’ board of directors and the CEO’s background.
3. Other high-performing stocks: Are there other stocks with better prospects and proven track records? Discover our free list of these great stocks here.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.