Theriva Biologics, Inc. (AMEX:TOVX) is a biotechnology company focused on developing innovative therapies for cancer and other diseases. The company aims to leverage its expertise in biologics to create effective treatments. In the competitive landscape, Theriva faces peers like Imunon, Inc., Fresh Tracks Therapeutics, Inc., LogicMark, Inc., Lisata Therapeutics, Inc., and Eledon Pharmaceuticals, Inc.
Theriva Biologics has a Return on Invested Capital (ROIC) of -92.88%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 5.46%. This negative ROIC indicates that the company is not generating positive returns on its invested capital. The ROIC to WACC ratio of -17.02 further highlights that Theriva's returns are well below its cost of capital, suggesting inefficiencies in capital utilization.
In contrast, Imunon, Inc. (IMNN) showcases a remarkable ROIC of 442.47% against a WACC of 3.90%, resulting in a ROIC to WACC ratio of 113.58. This indicates that Imunon is generating returns significantly above its cost of capital, highlighting its strong capital efficiency and potential for growth. This performance sets Imunon apart from its peers in the biotechnology sector.
Fresh Tracks Therapeutics, Inc. (FRTX) presents a more balanced scenario with a ROIC of 3.53% and a WACC of 9.55%, leading to a ROIC to WACC ratio of 0.37. Although the returns are below the cost of capital, the gap is not as pronounced as in Theriva's case. This suggests that Fresh Tracks is closer to achieving efficient capital utilization compared to Theriva.
Other peers like LogicMark, Inc. (LGMK) and Eledon Pharmaceuticals, Inc. (ELDN) also report negative ROICs of -48.29% and -54.51%, respectively, with ROIC to WACC ratios of -5.83 and -6.98. These figures indicate that these companies, like Theriva, are struggling to generate returns above their cost of capital, pointing to potential challenges in their capital management strategies.
