Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company focused on developing treatments for rare diseases. As a company in the early stages of development, Soleno is not yet generating significant revenue, which is reflected in its financial metrics. The company's peers include other clinical-stage biopharmaceutical firms like Akari Therapeutics, Leap Therapeutics, Tenax Therapeutics, Achieve Life Sciences, and Avenue Therapeutics.
Soleno's Return on Invested Capital (ROIC) is -15.74%, while its Weighted Average Cost of Capital (WACC) is 4.67%. This results in a ROIC to WACC ratio of -3.37, indicating that Soleno is not currently generating returns that exceed its cost of capital. This is a common scenario for companies in the clinical-stage biopharmaceutical sector, which often focus on research and development rather than immediate profitability.
In comparison, Akari Therapeutics has a ROIC of -64.44% and a WACC of 3.75%, resulting in a ROIC to WACC ratio of -17.18. Leap Therapeutics shows a ROIC of -37.62% and a WACC of 4.69%, with a ROIC to WACC ratio of -8.02. These figures highlight the challenges faced by these companies in generating returns above their cost of capital.
Tenax Therapeutics stands out among its peers with the highest ROIC to WACC ratio of -4.39, despite having a ROIC of -48.59% and a WACC of 11.07%. This suggests that Tenax is relatively closer to covering its cost of capital compared to its peers, although it is still not generating positive returns above its cost of capital.
Overall, all companies in this peer group, including Soleno Therapeutics, are experiencing negative ROIC. This is typical for clinical-stage biopharmaceutical companies, which are often in the investment phase, focusing on research and development. Investors in this sector typically look for potential future growth and successful product development.
