Aytu BioPharma, Inc. (NASDAQ:AYTU) is a specialty pharmaceutical company focused on developing and commercializing novel therapeutics. The company operates in a competitive landscape with peers like Co-Diagnostics, Inc., AIM ImmunoTech Inc., iBio, Inc., Biocept, Inc., and OpGen, Inc. These companies are also engaged in the biotechnology and pharmaceutical sectors, each striving to innovate and capture market share.
Aytu BioPharma's Return on Invested Capital (ROIC) is -18.15%, while its Weighted Average Cost of Capital (WACC) is 22.73%. This results in a ROIC to WACC ratio of -0.80, indicating that the company is not generating enough returns to cover its cost of capital. This is a concerning sign for investors, as it suggests inefficiency in capital utilization.
In comparison, Co-Diagnostics, Inc. has a ROIC of -69.90% and a WACC of 5.09%, resulting in a ROIC to WACC ratio of -13.72. Despite being negative, this ratio is the highest among the peers, suggesting that Co-Diagnostics is relatively closer to covering its cost of capital. However, it still falls short of achieving positive returns.
AIM ImmunoTech Inc. presents a more challenging scenario with a ROIC of -451.42% and a WACC of 5.18%, leading to a ROIC to WACC ratio of -87.20. This indicates a significant gap between the returns generated and the cost of capital, highlighting inefficiencies in capital utilization.
Similarly, iBio, Inc. and Biocept, Inc. show negative ROIC to WACC ratios of -18.10 and -26.61, respectively. OpGen, Inc. also struggles with a ROIC of -408.66% and a WACC of 13.23%, resulting in a ratio of -30.89. These figures underscore the challenges these companies face in generating sufficient returns on their investments relative to their capital costs.
