Karyopharm Therapeutics Inc. (NASDAQ:KPTI) is a pharmaceutical company focused on the discovery and development of drugs for cancer treatment. The company is known for its innovative approach to targeting nuclear transport pathways. However, when evaluating its financial performance, Karyopharm's Return on Invested Capital (ROIC) is -1634.05%, which is alarmingly low compared to its Weighted Average Cost of Capital (WACC) of 16.41%. This indicates that the company is not generating sufficient returns on its investments, leading to a ROIC to WACC ratio of -99.57.
In comparison, MacroGenics, Inc. (MGNX) has a ROIC of -37.98% and a WACC of 9.15%, resulting in a ROIC to WACC ratio of -4.15. Although MacroGenics also shows a negative ROIC, its ratio is significantly better than Karyopharm's, suggesting relatively less inefficiency in capital utilization. TG Therapeutics, Inc. (TGTX) stands out with a positive ROIC of 15.75% against a WACC of 12.34%, yielding a ROIC to WACC ratio of 1.28. This indicates that TG Therapeutics is effectively generating returns above its cost of capital.
Heron Therapeutics, Inc. (HRTX) presents a ROIC of 0.82% and a WACC of 6.57%, resulting in a ROIC to WACC ratio of 0.12. Intra-Cellular Therapies, Inc. (ITCI) has a ROIC of -10.08% and a WACC of 5.90%, leading to a ROIC to WACC ratio of -1.71. This negative ratio suggests inefficiencies, but it is still far better than Karyopharm's.
Agios Pharmaceuticals, Inc. (AGIO) reports a ROIC of -30.47% and a WACC of 7.57%, resulting in a ROIC to WACC ratio of -4.02. Similar to MacroGenics, Agios also shows inefficiencies, but again, not as severe as Karyopharm's. Among its peers, Karyopharm's financial metrics highlight significant challenges in capital utilization, contrasting sharply with TG Therapeutics, which demonstrates effective capital management.
