Coherus BioSciences, Inc. (NASDAQ:CHRS) is a biopharmaceutical company focused on developing and commercializing biosimilar and innovative therapeutics. The company aims to provide affordable and accessible treatment options for patients. In the competitive landscape, Coherus faces peers like Atara Biotherapeutics, FibroGen, MacroGenics, CytomX Therapeutics, and Blueprint Medicines, each with varying degrees of capital efficiency.
Coherus BioSciences stands out with a Return on Invested Capital (ROIC) of 96.59% against a Weighted Average Cost of Capital (WACC) of 9.41%. This results in a ROIC to WACC ratio of 10.27, indicating that Coherus is generating returns significantly above its cost of capital. This high ratio suggests that Coherus is effectively utilizing its capital to create value.
In comparison, Atara Biotherapeutics has a ROIC of 36.19% and a WACC of 6.80%, resulting in a ROIC to WACC ratio of 5.32. While this is positive, it is notably lower than Coherus, indicating less capital efficiency. CytomX Therapeutics also shows a positive ROIC to WACC ratio of 5.06, with a ROIC of 66.72% and a WACC of 13.19%, suggesting effective capital utilization but still trailing behind Coherus.
On the other hand, FibroGen, MacroGenics, and Blueprint Medicines present negative ROIC to WACC ratios. FibroGen's ROIC is -122.23% against a WACC of 7.54%, resulting in a ratio of -16.21. MacroGenics and Blueprint Medicines also show negative ratios of -6.01 and -2.13, respectively. These figures indicate that these companies are not generating returns above their cost of capital, which could be concerning for investors.
Overall, Coherus BioSciences leads its peer group in terms of capital efficiency, as evidenced by its superior ROIC to WACC ratio. This positions Coherus as a potentially attractive investment opportunity, highlighting its ability to generate substantial returns from its invested capital relative to its cost.
