With the business potentially at an important milestone, we thought we'd take a closer look at SpringWorks Therapeutics, Inc.'s (NASDAQ:SWTX) future prospects. SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. With the latest financial year loss of US$325m and a trailing-twelve-month loss of US$339m, the US$2.5b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is SpringWorks Therapeutics' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for SpringWorks Therapeutics

Consensus from 7 of the American Biotechs analysts is that SpringWorks Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$27m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving SpringWorks Therapeutics' growth isn’t the focus of this broad overview, however, keep in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. SpringWorks 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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