Esperion Therapeutics, Inc. is a pharmaceutical company focused on developing and commercializing oral therapies for the treatment of patients with elevated low-density lipoprotein cholesterol (LDL-C). The company aims to provide innovative solutions for cardiovascular diseases. In the competitive landscape, Esperion faces peers like Heron Therapeutics, PTC Therapeutics, Agios Pharmaceuticals, Karyopharm Therapeutics, and Amicus Therapeutics.
In evaluating Esperion's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. Esperion's ROIC stands at -31.97%, while its WACC is 13.42%. This results in a ROIC to WACC ratio of -2.38, indicating that the company is not generating enough returns to cover its cost of capital. This could be a red flag for investors, as it suggests inefficiencies in capital utilization.
Comparing Esperion to its peers, Heron Therapeutics has a ROIC of -2.39% and a WACC of 7.01%, resulting in a ROIC to WACC ratio of -0.34. Although Heron also has a negative ROIC, its ratio is less severe than Esperion's, indicating relatively better capital efficiency. On the other hand, PTC Therapeutics shines with a positive ROIC of 31.66% and a WACC of 9.52%, leading to a favorable ROIC to WACC ratio of 3.33. This suggests that PTC is effectively using its capital to generate returns well above its cost.
Agios Pharmaceuticals and Karyopharm Therapeutics also face challenges similar to Esperion, with ROIC to WACC ratios of -4.11 and -11.00, respectively. These figures highlight the difficulties these companies encounter in generating sufficient returns. Meanwhile, Amicus Therapeutics presents a more balanced picture with a ROIC of 1.95% and a WACC of 7.11%, resulting in a positive ROIC to WACC ratio of 0.27, indicating a slight edge in capital efficiency compared to Esperion.
Overall, PTC Therapeutics emerges as the leader among these companies, with its strong ROIC to WACC ratio of 3.33, suggesting efficient capital utilization and potential for growth. In contrast, Esperion and several other peers need to improve their capital efficiency to enhance investor confidence and achieve better financial performance.
