Capricor Therapeutics, Inc. (NASDAQ:CAPR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Capricor Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development of transformative cell and exosome-based therapeutics for the treatment of duchenne muscular dystrophy (DMD) and other diseases with unmet medical needs. With the latest financial year loss of US$22m and a trailing-twelve-month loss of US$34m, the US$751m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Capricor Therapeutics' 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.

Consensus from 7 of the American Biotechs analysts is that Capricor Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$18m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 68% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of Capricor Therapeutics' upcoming projects, however, 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we'd like to point out is that Capricor Therapeutics has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, 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:

There are too many aspects of Capricor Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Capricor Therapeutics' company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is Capricor Therapeutics 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 Capricor Therapeutics 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 Capricor Therapeutics'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.