Akebia Therapeutics, Inc. (NASDAQ:AKBA) is a biopharmaceutical company focused on developing and commercializing therapies for patients with kidney disease. The company's primary product is Auryxia, a medication used to treat iron deficiency anemia in patients with chronic kidney disease. Akebia operates in a competitive landscape with peers like Ardelyx, FibroGen, Karyopharm Therapeutics, Calithera Biosciences, and Aldeyra Therapeutics.
In evaluating Akebia's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. Akebia's ROIC stands at 0.34%, while its WACC is 10.46%. This results in a ROIC to WACC ratio of 0.033, indicating that the company is not generating returns that exceed its cost of capital. This suggests inefficiencies in capital utilization.
Comparatively, Ardelyx, Inc. (NASDAQ:ARDX) has a ROIC of -10.63% and a WACC of 7.62%, leading to a ROIC to WACC ratio of -1.395. Despite being negative, Ardelyx's ratio is the highest among its peers, indicating relatively better performance in this metric. However, it still reflects a failure to generate returns above its cost of capital.
FibroGen, Inc. (NASDAQ:FGEN) and Karyopharm Therapeutics Inc. (NASDAQ:KPTI) show even more concerning figures, with ROICs of -122.23% and -1634.05%, respectively. Their WACC figures are 7.40% and 16.28%, resulting in ROIC to WACC ratios of -16.521 and -100.389. These numbers highlight significant challenges in generating returns on invested capital.
Calithera Biosciences, Inc. (NASDAQ:CALA) and Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) also face difficulties, with ROICs of -184.41% and -75.25%, and WACCs of 3.17% and 7.59%, respectively. Their ROIC to WACC ratios are -58.23 and -9.913, further emphasizing the struggle to achieve positive returns relative to their cost of capital.
