Alar Pharmaceuticals (ROCO:6785) Gross Margin %: 88.40% (As of Jun. 2026) — 24% Above Median

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ROCO:6785 Alar Pharmaceuticals Inc ROCO:6785
56 GF Score
Price NT$98.10
GF Value NT$91.85
Valuation Fairly Valued
! 1 Warning Sign
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What is Alar Pharmaceuticals Gross Margin %?

Alar Pharmaceuticals ROCO:6785 -1.21% 56 Gross Margin % is 88.40% as of Jun. 2026, which is 24% above its 10-year median of 71.44. GuruFocus rates ROCO:6785 with a GF Score™ of 56/100 and a GF Value™ of NT$91.85 (Fairly Valued). The stock has 1 warning sign investors should review. Among 939 Drug Manufacturers companies, Alar Pharmaceuticals ranks better than 96.38% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Alar Pharmaceuticals's Gross Profit for the three months ended in Jun. 2026 was NT$1.11 Mil. Alar Pharmaceuticals's Revenue for the three months ended in Jun. 2026 was NT$1.25 Mil. Therefore, Alar Pharmaceuticals's Gross Margin % for the quarter that ended in Jun. 2026 was 88.40%.


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

ROCO:6785' s Gross Margin % Range Over the Past 10 Years
Min: 65.15   Med: 71.44   Max: 86.4
Current: 86.4


During the past 9 years, the highest Gross Margin % of Alar Pharmaceuticals was 86.40%. The lowest was 65.15%. And the median was 71.44%.

ROCO:6785's Gross Margin % is ranked better than
96.38% of 939 companies
in the Drug Manufacturers industry
Industry Median: 48.54 vs ROCO:6785: 86.40

Alar Pharmaceuticals had a gross margin of 88.40% for the quarter that ended in Jun. 2026 => Durable competitive advantage

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


Alar Pharmaceuticals  (ROCO:6785) 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

Alar Pharmaceuticals had a gross margin of 88.40% for the quarter that ended in Jun. 2026 => 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.


Alar Pharmaceuticals Gross Margin % Related Terms


Alar Pharmaceuticals Gross Margin % Historical Data

* Premium members only.

The historical data trend for Alar Pharmaceuticals'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.

Alar Pharmaceuticals Gross Margin % Chart

Alar Pharmaceuticals Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 0.00 0.00 0.00 65.15 77.73

Alar Pharmaceuticals Quarterly Data
Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 Premium Member Only Premium Member Only 72.07 0.00 82.47 0.00 88.40

ROCO:6785 vs ZTS: Gross Margin % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Alar Pharmaceuticals'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.


Alar Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Alar Pharmaceuticals's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alar Pharmaceuticals's Gross Margin % falls into.


ROCO:6785
56GF Score
Alar Pharmaceuticals Inc ROCO:6785
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Alar Pharmaceuticals Gross Margin % Calculation

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

Alar Pharmaceuticals's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=2.1 / 2.753
=(Revenue - Cost of Goods Sold) / Revenue
=(2.753 - 0.613) / 2.753
=77.73 %

Alar Pharmaceuticals's Gross Margin for the quarter that ended in Jun. 2026 is calculated as


Gross Margin % (Q: Jun. 2026 )=Gross Profit (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=1.1 / 1.25
=(Revenue - Cost of Goods Sold) / Revenue
=(1.25 - 0.145) / 1.25
=88.40 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 88.40% mean?
Alar Pharmaceuticals (ROCO:6785) has a Gross Margin % of 88.40% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alar Pharmaceuticals and its competitors. This is 24% above median its historical median of 71.44. Over the past decade, Alar Pharmaceuticals' Gross Margin % has ranged from 65.15 to 86.40. According to the industry distribution chart, Alar Pharmaceuticals ranks #34 out of 939 companies in the Drug Manufacturers industry, placing it in the top 3.6%.
Is Alar Pharmaceuticals' Gross Margin % too high?
Alar Pharmaceuticals' current Gross Margin % of 88.40% is 24% above median its 10-year median of 71.44. Over the past 10 years, this metric has ranged from a low of 65.15 to a high of 86.40. The Drug Manufacturers industry median Gross Margin % is 48.54. Alar Pharmaceuticals' value of 88.40% is 82.1% above this industry median. Based on the distribution chart, Alar Pharmaceuticals ranks #34 out of 939 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Alar Pharmaceuticals has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alar Pharmaceuticals' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Alar Pharmaceuticals ranks #34 out of 939 companies for Gross Margin %. This places Alar Pharmaceuticals in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Alar Pharmaceuticals' value of 88.40% is 82.1% above this benchmark. Historically, Alar Pharmaceuticals' own Gross Margin % has ranged from 65.15 to 86.40 over the past decade. While the company's 10-year median is 71.44 vs. the industry median of 48.54, Alar Pharmaceuticals has consistently been above the industry average. 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 939 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. Alar Pharmaceuticals's current Gross Margin % of 88.40% is 82.1% above 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 Alar Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alar Pharmaceuticals's current Gross Margin % is 88.40%, which is 24% above median its own 10-year median of 71.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alar Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Alar Pharmaceuticals (ROCO:6785) is currently considered Fairly Valued. The stock's GF Value™ is NT$91.85, compared to a current price of NT$98.10 — trading 6.8% above its estimated fair value. The current Gross Margin % is 88.40%, which is 24% above median its 10-year median of 71.44 and 82.1% above the Drug Manufacturers industry median of 48.54. Alar Pharmaceuticals' overall GF Score™ is 56/100 with 1 warning sign to review. 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 Alar Pharmaceuticals (ROCO:6785), the current Gross Margin % is 88.40% as of Jun. 2026. 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.

Is Alar Pharmaceuticals (ROCO:6785) Overvalued in 2026?

Based on GuruFocus' analysis, Alar Pharmaceuticals stock appears to be overvalued. The current stock price of NT$98.10 is trading 6.8% above its estimated GF Value™ of NT$91.85. GuruFocus considers Alar Pharmaceuticals to be Fairly Valued.

Key valuation signals for ROCO:6785:

  • Gross Margin %: 88.40% (24% above median its 10-year median of 71.44)
  • GF Value™: NT$91.85 vs. price of NT$98.10 (6.8% above fair value)
  • GF Score™: 56/100 with 1 warning sign
  • Industry Position: 82.1% above the Drug Manufacturers median (#34 of 939)

No single metric tells the full story. See the ROCO:6785 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Alar Pharmaceuticals Business Description

Address Jhongke Road, No. 32, No. 2, 5th Floor, Situn District, Taichung, TWN, 428015
Alar Pharmaceuticals Inc is a drug development company mainly engaged in the research and development of new drugs, sales of western pharmaceuticals, and medical devices. It focuses on developing long-acting release drug products for CNS disorders and chronic diseases, which mainly include opioid use disorder, chronic pain, and depressive disorder. The company currently has only a new drug development division, and its product pipeline comprises various drug candidates such as ALA-1000 (Buprenorphine), ALA-1300, ALA-2000 (Naltrexone), ALA-3000 (Ketamine), ALA-4000 (Apomorphine), and ALA-5000 (Third-generation antipsychotic). Geographically, the company generates maximum revenue from the USA and also has its presence in Taiwan and the United Kingdom.
56GF Score

Get the complete analysis for ROCO:6785

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$98.10
Price
NT$91.85
GF Value