.September 3, 2024 at 4:00:05 PM

Biofrontera Inc. has a concerning ROIC of -154.20% and a WACC of 9.84%, resulting in a negative ROIC/WACC ratio of -15.67, indicating inefficient capital returns. Peer analysis in the biopharmaceutical sector shows a common challenge of negative ratios, with Pasithea Therapeutics Corp. having the highest (least negative) ratio of -14.48. The industry-wide issue of negative ratios suggests a struggle to generate profitable returns on invested capital, emphasizing the need to consider other factors for investment decisions. This highlights the importance of evaluating financial health and efficiency in the biopharmaceutical industry to make informed investment choices.