With the business potentially at an important milestone, we thought we'd take a closer look at TG Therapeutics, Inc.'s (NASDAQ:TGTX) future prospects. TG Therapeutics, Inc., a commercial stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for B-cell diseases. The US$1.9b market-cap company's loss lessened since it announced a US$198m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$26m, as it approaches breakeven. As path to profitability is the topic on TG Therapeutics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Consensus from 8 of the American Biotechs analysts is that TG Therapeutics is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$95m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 53% 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.

Underlying developments driving TG Therapeutics' growth isn't the focus of this broad overview, though, take into account 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.

Before we wrap up, there's one issue worth mentioning. TG Therapeutics currently has a relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in TG Therapeutics' case is 60%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of TG Therapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at TG Therapeutics, take a look at TG Therapeutics' company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is TG 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 TG 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 TG 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.