Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) is a specialty pharmaceutical company that develops, manufactures, and markets generic and proprietary injectable and inhalation products. The company operates in a competitive landscape with peers like Collegium Pharmaceutical, Inc. (COLL), ANI Pharmaceuticals, Inc. (ANIP), AngioDynamics, Inc. (ANGO), and Pacira BioSciences, Inc. (PCRX).
Amphastar's Return on Invested Capital (ROIC) is 10.44%, while its Weighted Average Cost of Capital (WACC) is 6.16%. This results in a ROIC to WACC ratio of 1.69, indicating that Amphastar is generating returns significantly above its cost of capital. This is a positive indicator for investors, as it suggests efficient capital use and potential for growth.
In comparison, Collegium Pharmaceutical has a ROIC of 7.92% and a WACC of 6.44%, resulting in a ROIC to WACC ratio of 1.23. While Collegium is also generating returns above its cost of capital, it is not as efficient as Amphastar. This highlights Amphastar's superior capital management among its peers.
ANI Pharmaceuticals, with a ROIC of 0.94% and a WACC of 5.71%, has a ROIC to WACC ratio of 0.16. This suggests that ANI is not generating sufficient returns to cover its cost of capital, indicating less efficient capital use compared to Amphastar.
AngioDynamics and Pacira BioSciences both have negative ROIC to WACC ratios, -1.70 and -1.71 respectively, indicating they are not generating returns above their cost of capital. This further emphasizes Amphastar's strong position in terms of capital efficiency and potential attractiveness to investors.
