Nektar Therapeutics gross margin has been in long-term decline. The average rate of decline per year is -7.1%.
The historical rank and industry rank for Nektar Therapeutics's Gross Margin % or its related term are showing as below:
NKTR'
s Gross Margin % Range Over the Past 10 Years
Min: 62.53 Med: 83.48 Max: 97.95
Current: 62.53
During the past 13 years, the highestGross Margin % of Nektar Therapeutics was 97.95%. The lowest was 62.53%. And the median was 83.48%.
NKTR's Gross Margin % is ranked better than 53.33% of 735
companies
in the Biotechnology industry
Industry Median: 59.4
vs NKTR: 62.53
Nektar Therapeutics had a gross margin of 69.51% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nektar Therapeutics was -7.10% per year.
Nektar Therapeutics Gross Margin % Historical Data
The historical data trend for Nektar Therapeutics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Nektar Therapeutics's Gross Margin %
For the Biotechnology subindustry, Nektar Therapeutics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nektar Therapeutics's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Nektar Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nektar Therapeutics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Nektar Therapeutics had a gross margin of 69.51% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Nektar Therapeutics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Nektar Therapeutics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nektar Therapeutics (Nektar Therapeutics) Business Description
Nektar Therapeutics is a biopharmaceutical company. It has wholly-owned research and development pipeline of investigational medicines in oncology, immunology, and virology as well as a portfolio of approved partnered medicines. In oncology, the company is focused on activating the immune system's natural tumor-fighting mechanisms, and it will be studying several immuno-oncology drug candidates in the clinic for a variety of cancer indications. In immunology, it is focused on addressing imbalances in the immune system to restore the body's self-tolerance mechanisms and achieve immune homeostasis. In virology, the company believes selective immuno-modulators can be useful in addressing viral infections in people. The group derives revenue from the United States and the Rest of the World.
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