Gross Margin % is calculated as gross profit divided by its revenue. InterMune's Gross Profit for the
three
months ended in Jun. 2014 was €22.06 Mil. InterMune's Revenue for the
three
months ended in Jun. 2014 was €26.30 Mil. Therefore, InterMune's Gross Margin % for the quarter that ended in Jun. 2014 was 83.85%.
Warning Sign:
InterMune Inc gross margin has been in long term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for InterMune's Gross Margin % or its related term are showing as below:
FRA:IUX'
s Gross Margin % Range Over the Past 10 Years
Min: 39.59 Med: 77.06 Max: 116.67
Current: 86.34
During the past 13 years, the highestGross Margin % of InterMune was 116.67%. The lowest was 39.59%. And the median was 77.06%.
FRA:IUX's Gross Margin % is not ranked
in the Biotechnology industry.
Industry Median: 60.91
vs FRA:IUX: 86.34
InterMune had a gross margin of 83.85% for the quarter that ended in Jun. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for InterMune was -2.40% per year.
InterMune Gross Margin % Historical Data
The historical data trend for InterMune'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 InterMune's Gross Margin %
For the Biotechnology subindustry, InterMune'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.
InterMune's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, InterMune's Gross Margin % distribution charts can be found below:
* The bar in red indicates where InterMune'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.
InterMune (FRA:IUX) 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
InterMune had a gross margin of 83.85% for the quarter that ended in Jun. 2014 => 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.
InterMune Gross Margin % Related Terms
Thank you for viewing the detailed overview of InterMune's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
InterMune, Inc was incorporated in California in 1998 and reincorporated in Delaware in 2000 in connection with its initial public offering. InterMune is a biotechnology company focused on the research, development and commercialization of therapies in pulmonology and orphan fibrotic diseases. The Company's business is mainly focused on the development and commercialization of therapies within the specialized areas of pulmonology and orphan fibrotic diseases. It has an advanced-stage product candidate in pulmonology, pirfenidone that was granted marketing authorization effective February 2011 in all 27 member countries of the European Union for the treatment of adults with mild to moderate idiopathic pulmonary fibrosis. Pirfenidone is an orally active, small molecule compound under development for the treatment of idiopathic pulmonary fibrosis. Pirfenidone, a treatment for IPF, a progressive and fatal lung disease, has completed the global Phase 3 CAPACITY clinical development program. Actimmune is currently approved in the United States for the treatment of chronic granulomatous disease and severe, malignant osteopetrosis. Actimmune is also approved for commercial use in both indications in numerous other countries. CGD is a life-threatening congenital disorder that causes patients, mainly children, to be vulnerable to severe, recurrent bacterial and fungal infections. This results in frequent and prolonged hospitalizations and commonly results in death. Severe, malignant osteopetrosis is a life-threatening, congenital disorder that mainly affects children. This disease results in increased susceptibility to infection and an overgrowth of bony structures that might lead to blindness and/or deafness. The FDA and comparable regulatory agencies in state and local jurisdictions and in foreign countries impose substantial requirements upon the clinical development, manufacture and marketing of pharmaceutical products.
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