OncoSil (ASX: OSL) is arguably one of the most innovative treatments available for pancreatic cancer patients and the company could be approaching a most significant turning point. In this article, we take stock of Oncosil’s (ASX: OSL) share price performance, expansion efforts, and the prospects for the coming years. Like most biotech stocks, the first couple of years are difficult and trying, but once control trials pass and commercialization expands, the share price of innovative biotech stocks tends to recover.

Oncosil could not only become the next Sirtex, but it could become the basis of future pancreatic cancer treatments due to its minimally invasive technique that protects surrounding tissue. In this article, we don’t list the positive attributes of Oncosil (ASX: OSL) but rather analyze its share price over the years, we illustrate its share price and positive developments of other stocks that have performed after controlled trials and commercialisation efforts. Furthermore, the management is no stranger to multi-billion dollar deals, judging by the sale of Sirtex. 

Oncosil (ASX: OSL) could breakeven very soon

We believed it would be prudent to take a closer look at OncoSil Medical Limited's (ASX: OSL) prospects in light of the possibility that the business is about to undergo a major turning point. Research, development, and international distribution of targeted radiation therapy for the treatment of unresectable locally advanced pancreatic cancer are the focus of a medical device company named OncoSil Medical Limited. 

Consequently, it's projected that the business will break even in around two years. By this date, what annual growth rate will the company need to achieve to break even? Using a line of best fit, we calculated an average annual growth rate of 57%, which is a high rate! Should this speed turn out to be unduly ambitious, the company may turn a profit far later than experts had predicted.

Why Oncosil Could Breakeven Soon

Since this is a high-level summary, we won't go over company-specific developments for OncoSil Medical; nevertheless, keep in mind that life science firms generally have erratic cash flow periods based on the stage of product development. It is highly unusual for a cash-burning life science business like OncoSil Medical to have no debt on its balance sheet at this time, given debt is often high about equity. Due to its current debt-free status and reliance only on shareholder investment, the company is less vulnerable to repayment difficulties. As such, its recent capital raise of $5.3 million will enable it to expand, continue clinical trials, and optimize its manufacturing supply chains. 

Commercialisation: The OncoSil device is increasingly used across hospitals and the device is approved in over 35 countries across the world. As such, Oncosil must invest more in sales and marketing to accelerate the adoption of its device across treatment centers and train doctors on how to use the device to treat patients with pancreatic cancer. OncoSil has submitted additional information to the FDA in the United States to ensure it can be fully approved and marketed soon.

Costs of Clinical Trials and Expansion with FOLFIRINOX: Clinical trial expenditure to expand the use of the OncoSil device in combination with FOLFIRINOX  chemotherapy and other trials. This will expand the range of treatments for OncoSil and ensure that revenue growth persists as the company continues to implant itself. Clinical trials, if successful, can bring about long-term revenue growth and increase their competitiveness over the long run. 

Manufacturing and Supply Chain Optimisation: Completion of the next milestone and validation of the Macquarie Park, NSW. This is necessary to ensure that OncoSil can manufacture, market, sell, and train doctors to use its device. While full control of the supply chain is expensive, it will improve the predictability of supply and allow greater control over the price of the final product. Furthermore, due to the proprietary nature of this technology, it is important to maintain control over the intellectual property to ensure they maintain their position as market competitors with an affordable and target 

Oncosil will likely break even over the coming years due to innovative products that are gaining broad approval across over 35 countries, increased use in treatment centers, and its decision to expand in a manner that protects intellectual property. Like most biotech stocks, the early years are bumpy as experimentation and control trials do not produce revenue, but subsequent years will be better. For a highly innovative company like OncoSil, it is a question of “when”.