Agenus Inc. (NASDAQ:AGEN) showcases a remarkable Return on Invested Capital (ROIC) of 302.53% and a Weighted Average Cost of Capital (WACC) of 80.76%, indicating efficient capital utilization.
Geron Corporation (NASDAQ:GERN) and Celldex Therapeutics, Inc. (NASDAQ:CLDX) display negative ROIC, highlighting inefficiencies in capital utilization.
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) has the least negative ROIC to WACC ratio among the peers, suggesting it is closer to covering its cost of capital.
Agenus Inc. (NASDAQ:AGEN) is a biotechnology company focused on developing immuno-oncology therapies. The company aims to create innovative treatments for cancer by leveraging its expertise in immune system modulation. Agenus operates in a competitive landscape alongside companies like Geron Corporation, Celldex Therapeutics, and BioCryst Pharmaceuticals, all of which are also engaged in the development of novel therapies.
Agenus Inc. demonstrates exceptional capital efficiency with a Return on Invested Capital (ROIC) of 302.53% and a Weighted Average Cost of Capital (WACC) of 80.76%. The resulting ROIC to WACC ratio of 3.75 indicates that Agenus is generating returns significantly above its cost of capital. This suggests that the company is utilizing its capital effectively, which is a positive indicator for investors.
In contrast, Geron Corporation (NASDAQ:GERN) shows a negative ROIC of -68.21% against a WACC of 6.84%, resulting in a ROIC to WACC ratio of -9.97. This negative ratio suggests that Geron is not generating sufficient returns to cover its cost of capital, indicating inefficiencies in capital utilization.
Similarly, Celldex Therapeutics, Inc. (NASDAQ:CLDX) has a negative ROIC of -24.19% and a WACC of 11.81%, leading to a ROIC to WACC ratio of -2.05. This further highlights inefficiencies in capital utilization, as the company is not generating returns above its cost of capital.
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) also reports a negative ROIC of -11.14% with a WACC of 13.03%, resulting in a ROIC to WACC ratio of -0.85. Although still negative, BioCryst’s ratio is the highest among its peers, suggesting it is closer to covering its cost of capital compared to Geron and Celldex. However, it still falls short of generating positive returns.
