Celcuity Inc. (NASDAQ:CELC) Financial Analysis in the Biotech Sector

Company Overview - Celcuity Inc. is a biotechnology company focused on developing diagnostic tests for cancer patients, aiming to identify effective therapies tailored to individual needs [1] Financial Performance - Celcuity's Return on Invested Capital (ROIC) is -36.46%, significantly lower than its Weighted Average Cost of Capital (WACC) of 4.88%, indicating negative returns on invested capital [2] - The ROIC to WACC ratio for Celcuity is -7.47, showing that returns are well below the cost of capital [2] Peer Comparison - Crinetics Pharmaceuticals has a ROIC of -42.35% and a WACC of 4.55%, resulting in a ROIC to WACC ratio of -9.30, which is less negative than Celcuity's, suggesting it is closer to covering its cost of capital [3] - Evelo Biosciences has a ROIC of -201.37% and a WACC of 9.04%, leading to a ROIC to WACC ratio of -22.28, indicating a more severe situation than Celcuity [4] - Scholar Rock Holding Corporation and Cue Biopharma report negative ROICs of -101.98% and -151.57%, respectively, with ROIC to WACC ratios of -15.01 and -15.31, reflecting a common trend among clinical-stage biotech companies facing negative returns due to high R&D investments and limited revenue generation [5]