With the business potentially at an important milestone, we thought we'd take a closer look at Blueprint Medicines Corporation's (NASDAQ:BPMC) future prospects. Blueprint Medicines Corporation, a precision therapy company, develops medicines for genomically defined cancers and blood disorders in the United States and internationally. With the latest financial year loss of US$507m and a trailing-twelve-month loss of US$128m, the US$6.0b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Blueprint Medicines 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.

Consensus from 18 of the American Biotechs analysts is that Blueprint Medicines is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$89m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. 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 69%, which is rather optimistic! 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 Blueprint Medicines' upcoming projects, however, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there's one issue worth mentioning. Blueprint Medicines currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Blueprint Medicines 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 Blueprint Medicines 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 Blueprint Medicines'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.