MacroGenics Posts -49.6% ROIC Against 9.08% WACC, Lags Biopharma Peers
MGNX•MacroGenics reports a weighted average cost of capital of 9.08% and a return on invested capital of -49.59%, indicating continued investment-phase losses in its antibody-based cancer programs. Among peers, CytomX Therapeutics leads with a -1.40 ROIC/WACC ratio despite a -19.70% ROIC, while Karyopharm, Xencor and Atara post deeper capital deficits.
1. MacroGenics WACC and ROIC Analysis
MacroGenics has a weighted average cost of capital of 9.08% and a return on invested capital of -49.59%, reflecting heavy R&D expenditures in its clinical antibody-based cancer programs without current product revenues. The gap indicates each dollar invested is generating significant losses relative to its capital cost.
2. Peer Company Capital Returns
Xencor reported a -30.58% ROIC against a 9.91% WACC, Karyopharm faced a -177.79% ROIC with a 16.13% WACC, and Atara recorded a -41.06% ROIC on a 5.75% WACC, underscoring widespread negative returns within the clinical-stage biopharma group.
3. CytomX's Relative Efficiency
Despite a -19.70% ROIC, CytomX achieves the highest ROIC/WACC ratio at -1.40, signaling comparatively more prudent capital deployment and lower relative investment losses among its R&D-intensive peers.
