Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company focused on developing therapies for patients with serious and rare diseases. The company’s primary focus is on respiratory diseases, with its lead product being Arikayce, designed to treat lung infections. Insmed operates in a competitive landscape alongside companies like Amicus Therapeutics, Cytokinetics, PTC Therapeutics, Ultragenyx Pharmaceutical, and Halozyme Therapeutics.

In evaluating Insmed’s financial performance, the Return on Invested Capital (ROIC) is a critical metric. Insmed’s ROIC is -46.16%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 10.66%. This negative ROIC indicates that Insmed is not generating returns above its cost of capital, suggesting that the company is not currently creating value for its investors.

Comparatively, Amicus Therapeutics (FOLD) has a ROIC of 7.53% and a WACC of 7.79%, resulting in a ROIC to WACC ratio of 0.97. This indicates that Amicus is close to breaking even in terms of capital utilization. Meanwhile, Cytokinetics (CYTK) has a ROIC of -42.98% and a WACC of 9.00%, with a ROIC to WACC ratio of -4.78, showing similar challenges to Insmed in generating sufficient returns.

PTC Therapeutics (PTCT) and Ultragenyx Pharmaceutical (RARE) also face difficulties, with ROIC to WACC ratios of -2.07 and -5.18, respectively. These figures highlight the challenges these companies face in generating returns that exceed their cost of capital. However, Halozyme Therapeutics (HALO) stands out with a ROIC of 22.84% and a WACC of 9.16%, resulting in a ROIC to WACC ratio of 2.49, indicating effective capital utilization and value creation.