With the business potentially at an important milestone, we thought we'd take a closer look at Cardiol Therapeutics Inc.'s (TSE:CRDL) future prospects. Cardiol Therapeutics Inc., a clinical-stage biotechnology company, focuses on the research and development of anti-inflammatory therapies for the treatment of cardiovascular disease (CVD). The CA$149m market-cap company posted a loss in its most recent financial year of CA$21m and a latest trailing-twelve-month loss of CA$35m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Cardiol Therapeutics will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Cardiol Therapeutics

According to the 5 industry analysts covering Cardiol Therapeutics, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of CA$47m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 61% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Cardiol Therapeutics' upcoming projects, though, bear 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.

Before we wrap up, there’s one aspect worth mentioning. Cardiol Therapeutics currently has no debt on its balance sheet, which is rare for a loss-making pharma, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Cardiol Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Cardiol Therapeutics' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine: