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Pharmala Biotech HoldingsXCNQ:MDMA -1.96%38 Gross Margin % is 66.08% as of May. 2026, which is 25% below its 10-year median of 88.47. GuruFocus rates XCNQ:MDMA with a GF Score™ of 38/100 and a GF Value™ of C$0.25 (Fairly Valued). The stock has 4 warning signs investors should review. Among 735 Biotechnology companies, Pharmala Biotech Holdings ranks better than 70.61% on this metric.
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
Pharmala Biotech Holdings had a gross margin of 66.08% for the quarter that ended in May. 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.
Pharmala Biotech Holdings Gross Margin % Related Terms
Pharmala Biotech Holdings Gross Margin % Historical Data
* 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.
XCNQ:MDMA vs VRTX, REGN, RVMD: Gross Margin % Comparison
For the Biotechnology subindustry, Pharmala Biotech Holdings'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.
Pharmala Biotech Holdings Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Pharmala Biotech Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pharmala Biotech Holdings'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.
Pharmala Biotech Holdings (XCNQ:MDMA) has a Gross Margin % of 66.08% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pharmala Biotech Holdings and its competitors. This is 25% below median its historical median of 88.47. Over the past decade, Pharmala Biotech Holdings' Gross Margin % has ranged from 79.08 to 97.44. According to the industry distribution chart, Pharmala Biotech Holdings ranks #216 out of 735 companies in the Biotechnology industry, placing it in the top 29.4%.
Is Pharmala Biotech Holdings' Gross Margin % too high?
Pharmala Biotech Holdings' current Gross Margin % of 66.08% is 25% below median its 10-year median of 88.47. Over the past 10 years, this metric has ranged from a low of 79.08 to a high of 97.44. The Biotechnology industry median Gross Margin % is 60.91. Pharmala Biotech Holdings' value of 66.08% is 8.5% above this industry median. Based on the distribution chart, Pharmala Biotech Holdings ranks #216 out of 735 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Pharmala Biotech Holdings has a GF Score™ of 38/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pharmala Biotech Holdings' Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Pharmala Biotech Holdings ranks #216 out of 735 companies for Gross Margin %. This puts Pharmala Biotech Holdings in the upper half of its industry. The industry median Gross Margin % is 60.91. Pharmala Biotech Holdings' value of 66.08% is 8.5% above this benchmark. Historically, Pharmala Biotech Holdings' own Gross Margin % has ranged from 79.08 to 97.44 over the past decade. While the company's 10-year median is 88.47 vs. the industry median of 60.91, Pharmala Biotech Holdings 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 735 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. Pharmala Biotech Holdings's current Gross Margin % of 66.08% is 8.5% 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 Pharmala Biotech Holdings and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pharmala Biotech Holdings's current Gross Margin % is 66.08%, which is 25% below median its own 10-year median of 88.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pharmala Biotech Holdings stock overvalued right now?
Based on GuruFocus' analysis, Pharmala Biotech Holdings (XCNQ:MDMA) is currently considered Fairly Valued. The stock's GF Value™ is C$0.25, compared to a current price of C$0.25 — trading right at its estimated fair value. The current Gross Margin % is 66.08%, which is 25% below median its 10-year median of 88.47 and 8.5% above the Biotechnology industry median of 60.91. Pharmala Biotech Holdings' overall GF Score™ is 38/100 with 4 warning signs 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 Pharmala Biotech Holdings (XCNQ:MDMA), the current Gross Margin % is 66.08% as of May. 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 Pharmala Biotech Holdings (XCNQ:MDMA) Overvalued in 2026?
Based on GuruFocus' analysis, Pharmala Biotech Holdings stock appears to be undervalued.
The current stock price of C$0.25 is trading 0% below its estimated GF Value™ of C$0.25.
GuruFocus considers Pharmala Biotech Holdings to be Fairly Valued.
Key valuation signals for XCNQ:MDMA:
Gross Margin %: 66.08% (25% below median its 10-year median of 88.47)
GF Value™: C$0.25 vs. price of C$0.25 (0% below fair value)
Industry Position: 8.5% above the Biotechnology median (#216 of 735)
No single metric tells the full story. See the XCNQ:MDMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pharmala Biotech Holdings Inc is a Canadian Biotechnology company focused on the development, manufacture and sales of MDMA and MDXX class molecules in service to the burgeoning clinical research community and growing commercial use cases in select jurisdictions. The company produces its MDMA active pharmaceutical ingredient under the LaNeo brand through Good Manufacturing Practice (GMP) processes, aiming to address shortages for clinical trials investigating treatments for various disorders. It generates revenue from the sale of tablets, raw MDMA and MDXX compounds/formulations, and royalties from licensing of its IP.
38GF Score
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