The historical rank and industry rank for Sorrento Therapeutics's Gross Margin % or its related term are showing as below:
LTS:0L85's Gross Margin % is not ranked *
in the Biotechnology industry.
Industry Median: 60.795 * Ranked among companies with meaningful Gross Margin % only.
Sorrento Therapeutics had a gross margin of 43.74% for the quarter that ended in Jun. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sorrento Therapeutics was 0.00% per year.
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
Sorrento Therapeutics had a gross margin of 43.74% for the quarter that ended in Jun. 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.
Sorrento Therapeutics Gross Margin % Related Terms
Sorrento Therapeutics Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sorrento 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.
LTS:0L85 vs IMUX, OCUP, KZR: Gross Margin % Comparison
For the Biotechnology subindustry, Sorrento 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.
Sorrento Therapeutics Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sorrento Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sorrento 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.
Sorrento Therapeutics (LTS:0L85) has a Gross Margin % of 43.74% as of Jun. 2023. Gross margin is the ratio of total gross profit to net sales. View historical data on Sorrento Therapeutics and its competitors.
Is Sorrento Therapeutics' Gross Margin % too high?
Sorrento Therapeutics' current Gross Margin % is 43.74%. The Biotechnology industry median Gross Margin % is 60.80. Sorrento Therapeutics' value of 43.74% is 28.1% below this industry median. Overall, Sorrento Therapeutics has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sorrento Therapeutics' Gross Margin % compare to IMUX and OCUP?
Sorrento Therapeutics' Gross Margin % of 43.74% can be compared against companies in the Biotechnology industry. The industry median Gross Margin % is 60.80. Sorrento Therapeutics' value of 43.74% is 28.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.80, based on 734 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sorrento Therapeutics's current Gross Margin % of 43.74% is 28.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sorrento Therapeutics and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sorrento Therapeutics's current Gross Margin % is 43.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sorrento Therapeutics stock overvalued right now?
Sorrento Therapeutics (LTS:0L85) has a current Gross Margin % of 43.74%. The current Gross Margin % is 43.74% and 28.1% below the Biotechnology industry median of 60.80. Sorrento Therapeutics' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sorrento Therapeutics (LTS:0L85), the current Gross Margin % is 43.74% as of Jun. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Sorrento Therapeutics Inc is a clinical and commercial-stage biopharmaceutical company developing a portfolio of next-generation treatments for three major therapeutic areas: cancer, infectious disease, and pain. Its multimodal, multipronged approach to fighting cancer is made possible by its extensive immuno-oncology platforms, including key assets such as fully human antibodies (G-MAB library), immuno-cellular therapies (DAR-T), antibody-drug conjugates (ADCs), and oncolytic virus (Seprehvec). Sorrento is also developing potential antiviral therapies and vaccines against coronaviruses, including COVI-AMG, COVIDROPS, COVISHIELD, FUJOVEE (Abivertinib), and OQORY (Covi-MSC), and diagnostic test solutions, including COVITRACK and COVIMARK.
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