PTC Therapeutics, Inc. (NASDAQ:PTCT) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of clinically differentiated medicines. The company aims to address rare disorders and other unmet medical needs. In the competitive landscape, PTC Therapeutics stands out due to its strong financial metrics, particularly in terms of capital efficiency.
PTC Therapeutics boasts a Return on Invested Capital (ROIC) of 33.54%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 6.46%. This results in a ROIC to WACC ratio of 5.19, indicating that the company is effectively using its capital to generate returns well above its cost of capital. This efficiency in capital utilization is a positive indicator for shareholders, as it suggests value creation.
In comparison, Ultragenyx Pharmaceutical Inc. (RARE) has a ROIC of -46.62% and a WACC of 5.50%, resulting in a ROIC to WACC ratio of -8.48. This negative ratio suggests that Ultragenyx is not generating sufficient returns to cover its cost of capital, highlighting a less efficient use of capital compared to PTC Therapeutics.
Similarly, Agios Pharmaceuticals, Inc. (AGIO) and Blueprint Medicines Corporation (BPMC) also show negative ROIC to WACC ratios of -4.08 and -2.13, respectively. These figures indicate that both companies are struggling to generate returns that exceed their cost of capital, further emphasizing PTC Therapeutics' superior performance in capital efficiency.
Amicus Therapeutics, Inc. (FOLD) has a ROIC to WACC ratio of 0.27, the highest among the peers, yet still below 1. This suggests that while Amicus is closer to generating returns above its cost of capital compared to other peers, it still falls short. In contrast, PTC Therapeutics' ratio of 5.19 highlights its exceptional ability to generate returns on invested capital, setting it apart in the biopharmaceutical sector.
