Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a pharmaceutical company focused on developing and commercializing therapies for patients with rare neurological diseases. The company is known for its innovative approach to addressing unmet medical needs, particularly in the field of sleep disorders. Harmony Biosciences competes with other biotech firms like Inhibrx Biosciences, Kymera Therapeutics, iTeos Therapeutics, Vaxcyte, and Relay Therapeutics.
In evaluating Harmony Biosciences, a key metric is the Return on Invested Capital (ROIC) compared to the Weighted Average Cost of Capital (WACC). Harmony Biosciences has a ROIC of 17.22% and a WACC of 8.58%, resulting in a ROIC to WACC ratio of 2.01. This indicates that the company is generating returns significantly above its cost of capital, showcasing efficient capital utilization.
In contrast, Harmony's peers are struggling with negative ROIC figures. For instance, Inhibrx Biosciences has a ROIC of -205.07% and a WACC of 7.46%, leading to a ROIC to WACC ratio of -27.50. This suggests that Inhibrx is not generating returns above its cost of capital, highlighting a potential inefficiency in capital use.
Similarly, Kymera Therapeutics, with a ROIC of -27.81% and a WACC of 14.09%, has a ROIC to WACC ratio of -1.97. This negative ratio indicates that Kymera is also not generating sufficient returns relative to its cost of capital. Other peers like iTeos Therapeutics, Vaxcyte, and Relay Therapeutics show similar trends with negative ROIC to WACC ratios, further emphasizing Harmony's strong position in capital efficiency.
