Entrada Therapeutics, Inc. (NASDAQ:TRDA) Is About To Turn The Corner
With the business potentially at an important milestone, we thought we'd take a closer look at Entrada Therapeutics, Inc.'s (NASDAQ:TRDA) future prospects. Entrada Therapeutics, Inc., a biotechnology company, develops endosomal escape vehicle (EEV) therapeutics for the treatment of multiple neuromuscular diseases. The US$357m market-cap company announced a latest loss of US$95m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Entrada Therapeutics' path to profitability – when will it 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 Entrada Therapeutics
Consensus from 3 of the American Biotechs analysts is that Entrada Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$108m in 2023. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow -29% year-on-year, on average,
We're not going to go through company-specific developments for Entrada Therapeutics given that this is a high-level summary, though, bear 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. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Entrada Therapeutics currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of 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:
There are key fundamentals of Entrada 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 Entrada Therapeutics, take a look at Entrada Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:
Historical Track Record: What has Entrada 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Entrada Therapeutics' board and the CEO’s background.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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