Coherus BioSciences, Inc. (NASDAQ:CHRS) is a biopharmaceutical company that focuses on developing and commercializing biosimilar drugs. These are drugs that are highly similar to already approved biological medicines, offering more affordable treatment options. Coherus competes with other biopharmaceutical companies like Atara Biotherapeutics, FibroGen, MacroGenics, CytomX Therapeutics, and Blueprint Medicines.
In evaluating Coherus BioSciences, the company's Return on Invested Capital (ROIC) is a key metric. With an impressive ROIC of 96.59%, Coherus demonstrates a strong ability to generate returns on its investments. This is significantly higher than its Weighted Average Cost of Capital (WACC) of 9.37%, resulting in a ROIC to WACC ratio of 10.30. This indicates that Coherus is generating returns well above its cost of capital.
When comparing Coherus to its peers, Atara Biotherapeutics shows a ROIC of 36.19% and a WACC of 6.91%, resulting in a ROIC to WACC ratio of 5.24. While Atara's ratio is positive, it is still considerably lower than Coherus's, suggesting that Coherus is more efficient in generating returns relative to its cost of capital.
Other peers like FibroGen and MacroGenics face challenges, with negative ROICs of -122.23% and -37.98%, respectively. Their ROIC to WACC ratios of -16.17 and -4.07 indicate that they are not generating returns above their cost of capital. This highlights Coherus's strong performance in capital efficiency compared to these companies.
CytomX Therapeutics and Blueprint Medicines also show lower efficiency, with ROIC to WACC ratios of 2.28 and -2.13, respectively. Coherus's ability to maintain a high ROIC to WACC ratio sets it apart as a leader in capital efficiency among its peers, showcasing its strong financial performance in the biopharmaceutical industry.
