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Hyperion Therapeutics (FRA:0HY) Gross Margin % : 87.71% (As of Mar. 2015)


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What is Hyperion Therapeutics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hyperion Therapeutics's Gross Profit for the three months ended in Mar. 2015 was €25.3 Mil. Hyperion Therapeutics's Revenue for the three months ended in Mar. 2015 was €28.8 Mil. Therefore, Hyperion Therapeutics's Gross Margin % for the quarter that ended in Mar. 2015 was 87.71%.


The historical rank and industry rank for Hyperion Therapeutics's Gross Margin % or its related term are showing as below:


FRA:0HY's Gross Margin % is not ranked *
in the Biotechnology industry.
Industry Median: 60.9
* Ranked among companies with meaningful Gross Margin % only.

Hyperion Therapeutics had a gross margin of 87.71% for the quarter that ended in Mar. 2015 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hyperion Therapeutics was 0.00% per year.


Hyperion Therapeutics Gross Margin % Historical Data

The historical data trend for Hyperion 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.

* Premium members only.

Hyperion Therapeutics Gross Margin % Chart

Hyperion Therapeutics Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
- - - 84.03 87.91

Hyperion Therapeutics Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 87.78 87.94 88.39 87.57 87.71

Competitive Comparison of Hyperion Therapeutics's Gross Margin %

For the Biotechnology subindustry, Hyperion 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.


Hyperion Therapeutics's Gross Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Hyperion Therapeutics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hyperion Therapeutics's Gross Margin % falls into.



Hyperion Therapeutics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hyperion Therapeutics's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=81 / 92.117
=(Revenue - Cost of Goods Sold) / Revenue
=(92.117 - 11.133) / 92.117
=87.91 %

Hyperion Therapeutics's Gross Margin for the quarter that ended in Mar. 2015 is calculated as


Gross Margin % (Q: Mar. 2015 )=Gross Profit (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=25.3 / 28.822
=(Revenue - Cost of Goods Sold) / Revenue
=(28.822 - 3.541) / 28.822
=87.71 %

* 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.


Hyperion Therapeutics  (FRA:0HY) Gross Margin % Explanation

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

Hyperion Therapeutics had a gross margin of 87.71% for the quarter that ended in Mar. 2015 => 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.


Hyperion Therapeutics Gross Margin % Related Terms

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Hyperion Therapeutics (FRA:0HY) Business Description

Traded in Other Exchanges
N/A
Address
Hyperion Therapeutics Inc., was incorporated in Delaware on November 1, 2006. The Company completed its initial public offering on July 2012. It is a commercial biopharmaceutical company, engaged in the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. Its products, RAVICTI (glycerol phenylbutyrate) Oral liquid, BUPHENYL and AMMONAPS (sodium phenylbutyrate) Tablets and Powder, are designed to lower ammonia in the blood. The Company has developed RAVICTI to treat urea cycle disorders including 7 of the 8 prevalent UCD subtypes, and is developing glycerol phenylbutyrate, the active pharmaceutical ingredient in RAVICTI, to treat hepatic encephalopathy. RAVICTI is indicated for use as a nitrogen-binding agent for chronic management of adult and pediatric patients above 2 years of age with urea cycle disorders who cannot be managed by dietary protein restriction and/or amino acid supplementation alone. It distributes RAVICTI through two specialty pharmacies with a single dedicated call center responsible for interfacing with patients, physicians and payors. BUPHENYL is indicated in all patients with neonatal-onset deficiency (complete enzymatic deficiency, presenting within the first 28 days of life). It is also indicated in patients with late-onset disease (partial enzymatic deficiency, presenting after the first month of life) who have a history of hyperammonemic encephalopathy. The Company faces competition from established pharmaceutical and biotechnology companies, as well as from academic institutions, government agencies and private and public research institutions, among others, which may in the future develop products to treat UCD or HE. The Company is subject to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmental protection, fire hazard control, and disposal of hazardous or potentially hazardous substances.

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