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Radius Health (Radius Health) Gross Margin % : 90.43% (As of Jun. 2022)


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What is Radius Health Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Radius Health's Gross Profit for the three months ended in Jun. 2022 was $52.7 Mil. Radius Health's Revenue for the three months ended in Jun. 2022 was $58.3 Mil. Therefore, Radius Health's Gross Margin % for the quarter that ended in Jun. 2022 was 90.43%.


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


RDUS's Gross Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 46.8
* Ranked among companies with meaningful Gross Margin % only.

Radius Health had a gross margin of 90.43% for the quarter that ended in Jun. 2022 => Durable competitive advantage

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


Radius Health Gross Margin % Historical Data

The historical data trend for Radius Health'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.

Radius Health Gross Margin % Chart

Radius Health Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 93.98 91.51 90.72 92.79 91.67

Radius Health Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 91.13 91.07 91.77 90.13 90.43

Competitive Comparison of Radius Health's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Radius Health'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.


Radius Health's Gross Margin % Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Radius Health's Gross Margin % falls into.



Radius Health Gross Margin % Calculation

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

Radius Health's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=210.8 / 229.973
=(Revenue - Cost of Goods Sold) / Revenue
=(229.973 - 19.15) / 229.973
=91.67 %

Radius Health's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=52.7 / 58.285
=(Revenue - Cost of Goods Sold) / Revenue
=(58.285 - 5.576) / 58.285
=90.43 %

* 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.


Radius Health  (NAS:RDUS) 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

Radius Health had a gross margin of 90.43% for the quarter that ended in Jun. 2022 => 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.


Radius Health Gross Margin % Related Terms

Thank you for viewing the detailed overview of Radius Health's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Radius Health (Radius Health) Business Description

Traded in Other Exchanges
N/A
Address
22 Boston Wharf Road, 7th Floor, Boston, MA, USA, 02210
Radius Health Inc is an integrated biopharmaceutical company. It develops and commercializes endocrine therapeutics in the areas of osteoporosis and oncology. The company's product, TYMLOS, is for the treatment of postmenopausal women with osteoporosis at high risk for fracture, defined as a history of osteoporotic fracture, multiple risk factors for fracture, or patients who have failed or are intolerant to other available osteoporosis therapy. The product pipeline of the company includes Abaloparatide-patch for the treatment of postmenopausal women with osteoporosis, Elacestrant, and RAD140. It primarily operates the business in the United States of America and generates key revenue from the sales of TYMLOS.
Executives
Willard H Dere director ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320-1799
Jean Pierre Garnier director UNITED TECHNOLOGIES CORP, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Von Eschenbach Andrew C. director C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Jennifer Jarrett director C/O MEDIVATION, INC., 525 MARKET ST., 36TH FLOOR, SAN FRANCISCO CA 94105
Cathy Friedman director C/O INNOVIVA, INC., 2000 SIERRA POINT PARKWAY, SUITE 500, BRISBANE CA 94005
Machelle Sanders director C/O NOVAN, INC., 4105 HOPSON ROAD, MORRISVILLE NC 27560
G. Kelly Martin director, officer: CEO and President C/O NOVAN, INC., 4105 HOPSON RD, MORRISVILLE NC 27560
Sean Murphy director C/O NOVAN, INC., 4222 EMPEROR BOULEVAND, SUITE 200, DURHAM NC 27703
Owen Hughes director C/O RADIUS HEALTH, INC., 201 BROADWAY, 6TH FLOOR, BOSTON MA 02139
Elizabeth Messersmith officer: Senior Vice President 22 BOSTON WHARF ROAD 7TH FLOOR BOSTON MA 02210
Danielle Holtschlag officer: Vice President, Sales 22 BOSTON WHARF ROAD 7TH FLOOR BOSTON MA 02210
Chhaya Shah officer: Chief Business Officer 22 BOSTON WHARF ROAD 7TH FLOOR BOSTON MA 02210
Susan Vissers Lisa director 22 BOSTON WHARF ROAD 7TH FLOOR BOSTON MA 02210
Rubric Capital Management Lp 10 percent owner 155 EAST 44TH ST, SUITE 1630, NEW YORK NY 10017
Biotech Target N V 10 percent owner ARA HILL TOP BUILDING, UNIT A-5, PLETTERIJWEG OOST 1, CURACAO, WILLEMSTAD P8 000000