.September 4, 2024 07:00:03 AM

In the biopharmaceutical sector, Liquidia Corporation (NASDAQ:LQDA) is struggling to create shareholder value with a ROIC/WACC ratio of -25.89, indicating it’s not covering its cost of capital. Kezar Life Sciences, Inc. (NASDAQ:KZR) and Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) also face similar challenges, with negative ratios impacting their ability to generate returns above capital costs. However, Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) stands out with the highest growth potential and a less negative ROIC/WACC ratio of -4.77, suggesting it’s closer to creating value for shareholders despite not achieving positive returns. Investors should consider these financial metrics when evaluating investment opportunities in the biopharmaceutical sector.