We feel now is a pretty good time to analyse Ocumension Therapeutics' (HKG:1477) business as it appears the company may be on the cusp of a considerable accomplishment. Ocumension Therapeutics, together with its subsidiaries, operates as an ophthalmic pharmaceutical platform company in the People's Republic of China. On 31 December 2024, the HK$8.6b market-cap company posted a loss of CN¥268m for its most recent financial year. The most pressing concern for investors is Ocumension 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.

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Consensus from 2 of the Hong Kong Pharmaceuticals analysts is that Ocumension Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of CN¥59m in 2026. Therefore, the company is expected 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 101%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Ocumension Therapeutics' upcoming projects, though, bear in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for Ocumension Therapeutics

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Ocumension Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Ocumension Therapeutics' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Historical Track Record: What has Ocumension 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Ocumension Therapeutics' 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.

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.