Karyopharm Therapeutics Inc. (NASDAQ:KPTI) is a pharmaceutical company focused on developing and commercializing innovative medicines for cancer and other major diseases. The company's primary product is XPOVIO, a drug used to treat multiple myeloma and other cancers. Karyopharm operates in a competitive landscape alongside peers like MacroGenics, TG Therapeutics, Heron Therapeutics, Intra-Cellular Therapies, and Agios Pharmaceuticals.
In evaluating Karyopharm's financial efficiency, the Return on Invested Capital (ROIC) is a critical metric. Karyopharm's ROIC stands at -123.21%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 23.53%. This results in a ROIC to WACC ratio of -5.24, indicating that the company is not generating sufficient returns to cover its cost of capital, a red flag for investors.
Comparatively, MacroGenics has a ROIC of -53.63% and a WACC of 12.14%, leading to a ROIC to WACC ratio of -4.42. While still negative, MacroGenics is slightly more efficient than Karyopharm in managing its capital. TG Therapeutics, with a ROIC of -0.11% and a WACC of 14.84%, achieves the highest ROIC to WACC ratio among the peers at -0.0076, suggesting better capital management.
Heron Therapeutics and Intra-Cellular Therapies also show negative ROIC to WACC ratios of -2.28 and -1.38, respectively. Despite these negative figures, they are more favorable compared to Karyopharm's performance. Agios Pharmaceuticals, with a ROIC of -24.94% and a WACC of 8.24%, has a ROIC to WACC ratio of -3.03, again outperforming Karyopharm in this metric.
Overall, while all companies in this peer group are generating returns below their cost of capital, TG Therapeutics stands out with the least negative ROIC to WACC ratio. This suggests that TG Therapeutics is relatively more efficient in managing its capital compared to Karyopharm and other peers.
