We feel now is a pretty good time to analyse MeiraGTx Holdings plc's (NASDAQ:MGTX) business as it appears the company may be on the cusp of a considerable accomplishment. MeiraGTx Holdings plc, a clinical stage gene therapy company, focusing on developing treatments for patients with serious diseases. The company’s loss has recently broadened since it announced a US$130m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$132m, moving it further away from breakeven. As path to profitability is the topic on MeiraGTx Holdings' investors mind, we've decided to gauge market sentiment. 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 MeiraGTx Holdings

According to the 2 industry analysts covering MeiraGTx Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$43m in 2025. So, the company is predicted to breakeven just over a year 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 59%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of MeiraGTx Holdings' upcoming projects, though, keep in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. MeiraGTx Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in MeiraGTx Holdings' case is 78%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of MeiraGTx Holdings 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 MeiraGTx Holdings, take a look at MeiraGTx Holdings' company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has MeiraGTx Holdings' 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 MeiraGTx Holdings' 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.