We feel now is a pretty good time to analyse CorMedix Inc.'s (NASDAQ:CRMD) business as it appears the company may be on the cusp of a considerable accomplishment. CorMedix Inc., a biopharmaceutical company, focuses on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases in the United States. The US$582m market-cap company posted a loss in its most recent financial year of US$46m and a latest trailing-twelve-month loss of US$46m shrinking the gap between loss and breakeven. As path to profitability is the topic on CorMedix's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for CorMedix

Consensus from 5 of the American Pharmaceuticals analysts is that CorMedix is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$40m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 47%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving CorMedix's growth isn’t the focus of this broad overview, but, take into account that by and large pharmaceuticals, 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 CorMedix has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which typically has high 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 CorMedix, so if you are interested in understanding the company at a deeper level, take a look at CorMedix's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is CorMedix worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether CorMedix is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CorMedix’s 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.

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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.