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May 14, 2025 8:00 PM - Gordon Thompson
Image credit: Google Images
PTC Therapeutics, Inc. (NASDAQ:PTCT) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of clinically differentiated medicines. The company primarily targets rare disorders and has a strong pipeline of products aimed at addressing unmet medical needs. In the competitive landscape, PTC Therapeutics stands alongside peers like Ultragenyx Pharmaceutical Inc., Agios Pharmaceuticals, Inc., Amicus Therapeutics, Inc., and Blueprint Medicines Corporation.
PTC Therapeutics boasts a Return on Invested Capital (ROIC) of 31.66% and a Weighted Average Cost of Capital (WACC) of 10.03%. This results in a ROIC to WACC ratio of 3.16, indicating that the company is generating returns significantly above its cost of capital. This is a positive indicator for investors, as it suggests efficient use of capital to generate profits.
In comparison, Ultragenyx Pharmaceutical Inc. has a ROIC of -50.05% and a WACC of 7.62%, leading to a ROIC to WACC ratio of -6.57. This negative ratio suggests that Ultragenyx is not generating sufficient returns to cover its cost of capital, which may be a concern for investors.
Amicus Therapeutics, Inc. stands out with a ROIC of 55.32% and a WACC of 7.91%, resulting in a ROIC to WACC ratio of 6.99. This is the highest among the peers, indicating that Amicus is generating returns well above its cost of capital. This strong capital efficiency makes Amicus an attractive option for investors seeking high returns.
Blueprint Medicines Corporation, with a ROIC of -17.59% and a WACC of 8.51%, has a ROIC to WACC ratio of -2.07. Similar to Ultragenyx, this negative ratio suggests that Blueprint Medicines is not effectively using its capital to generate returns, which could be a red flag for potential investors.
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