Applied Therapeutics, Inc. (NASDAQ:APLT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Applied Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of a pipeline of novel product candidates against validated molecular targets in indications of high unmet medical need in the United States. The company’s loss has recently broadened since it announced a US$120m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$194m, moving it further away from breakeven. Many investors are wondering about the rate at which Applied Therapeutics will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Applied Therapeutics

Consensus from 5 of the American Biotechs analysts is that Applied Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$65m in 2026. 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 64% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Applied Therapeutics given that this is a high-level summary, however, bear in mind that typically 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.

One thing we’d like to point out is that Applied Therapeutics has no debt on its balance sheet, which is rare for a loss-making biotech, 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.

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This article is not intended to be a comprehensive analysis on Applied Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Applied Therapeutics' company page on Simply Wall St. We've also put together a list of key factors you should look at: