Can ALGS sustain its earnings growth beyond 2024?

**Aligos Therapeutics Inc. (ALGS) faces significant challenges in sustaining its earnings growth beyond 2024.** Here's why: 1. **Current Financial Performance**: Aligos reported a net loss of $131.2 million for the year ended December 31, 2024, with a net income YoY growth of -194.53% and a total revenue YoY growth of -76.54%. The company's financials indicate a dire state, with substantial losses and a significant decline in revenue. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|market_code| |---|---|---|---|---|---|---| |ALGS|ALGS.O|Aligos|2024 Q1|-51.8754084077543|-63.78993756885788|186| |ALGS|ALGS.O|Aligos|2024 Q2|126.93310627428025|-84.59192564623874|186| |ALGS|ALGS.O|Aligos|2024 Q3|-6.751288731223324|-60.82124112380364|186| |ALGS|ALGS.O|Aligos|2024 Q4|-194.52889717481716|-76.53860499813503|186| 2. **Revenue and Collaboration Challenges**: Aligos' revenue from collaborations and customers has seen a significant decrease, primarily due to the completion of agreements with Merck and Amoytop. The company needs to secure new collaborations and generate income from its customer agreements to sustain growth. 3. **Operational and Strategic Focus**: Aligos has been focused on developing novel therapeutics for liver diseases and viral infections. While the company has made progress with its drug candidates, it still operates at a clinical stage, which is inherently risky and requires substantial funding. 4. **Cash Position and Funding Needs**: The company's 10-K filing reveals an increase in net loss due to a $44 million change in the fair value of common warrants. This indicates a need for capital to support operations and drug development. Aligos will need to secure funding to sustain its operations and advance its pipeline. 5. **Market and Industry Factors**: The biopharmaceutical industry is highly competitive, and Aligos faces risks inherent in the drug development process, including regulatory approval processes and the timing of clinical trial milestones. These factors can impact the company's ability to sustain growth. 6. **Recent Developments**: Aligos has regained Nasdaq compliance, which is a positive sign, but it does not guarantee sustained earnings growth. The company's future success will depend on its ability to overcome the challenges it faces and to capitalize on its drug candidates' potential. In conclusion, while Aligos has made progress in its drug development and has regained Nasdaq compliance, the company's current financial state and the inherent risks in the biopharmaceutical industry make it uncertain whether it can sustain earnings growth beyond 2024. The company will need to secure funding, generate revenue from its drug candidates, and navigate the competitive landscape successfully to achieve sustained growth.