Sorrento Therapeutics (Sorrento Therapeutics) Gross Margin % : 43.74% (As of Jun. 2023)

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What is Sorrento Therapeutics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sorrento Therapeutics's Gross Profit for the three months ended in Jun. 2023 was $6.57 Mil. Sorrento Therapeutics's Revenue for the three months ended in Jun. 2023 was $15.03 Mil. Therefore, Sorrento Therapeutics's Gross Margin % for the quarter that ended in Jun. 2023 was 43.74%.

Warning Sign:

Sorrento Therapeutics Inc gross margin has been in long-term decline. The average rate of decline per year is -8.5%.

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

SRNE' s Gross Margin % Range Over the Past 10 Years
Min: 44.56 Med: 70.92 Max: 99.13
Current: 44.56

During the past 13 years, the highest Gross Margin % of Sorrento Therapeutics was 99.13%. The lowest was 44.56%. And the median was 70.92%.

SRNE's Gross Margin % is ranked worse than
66.98% of 736 companies
in the Biotechnology industry
Industry Median: 59.905 vs SRNE: 44.56

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 -8.50% per year.

Sorrento Therapeutics Gross Margin % Historical Data

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.

* Premium members only.

Sorrento Therapeutics Gross Margin % Chart

Sorrento Therapeutics Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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66.69

61.07

75.14

75.37

46.77

Sorrento Therapeutics Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Gross Margin %	Get a 7-Day Free Trial															50.23	52.48	12.00	68.09	43.74

Competitive Comparison of Sorrento Therapeutics's Gross Margin %

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's Gross Margin % Distribution in the 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.

Sorrento Therapeutics Gross Margin % Calculation

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

Sorrento Therapeutics's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	29.4	/	62.839
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(62.839 - 33.452)	/	62.839
	=	46.77 %

Sorrento Therapeutics's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	6.6	/	15.025
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15.025 - 8.453)	/	15.025
	=	43.74 %

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 (OTCPK:SRNE) 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

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

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

Sorrento Therapeutics (Sorrento Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Sorrento Therapeutics Inc (OTCPK:SRNE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4955 Directors Place, San Diego, CA, USA, 92121

Website

https://www.sorrentotherapeutics.com

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.

Executives

Henry Ji	director, officer: See Remarks	5370 RUETTE DE MER, SAN DIEGO CA 92130
Tammy Reilly	director	C/O SORRENTO THERAPEUTICS, INC., 4955 DIRECTORS PLACE, SAN DIEGO CA 92121
Kim Janda	director	6042 CORNERSTONE CT. WEST, SUITE B, SAN DIEGO CA 92121
Elizabeth Czerepak	director	201 ROUTE 17 NORTH, RUTHERFORD NJ 07070
Dorman Followwill	director	C/O SORRENTO THERAPEUTICS, INC., 4955 DIRECTOR'S PLACE, SAN DIEGO CA 92121
Najjam Asghar	officer: Chief Financial Officer	C/O SORRENTO THERAPEUTICS, INC., 4955 DIRECTORS PLACE, SAN DIEGO CA 92121
Robin L Smith	director	C/O PHASE III MEDICAL, INC., 330 SOUTH SERVICE ROAD, SUITE 120, MELVILLE NY 11747
Edgar Lee	director	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 SOUTH GRAND AVE, 28TH FLOOR, LOS ANGELES CA 90071
Jerome B Zeldis	officer: See Remarks	8767 E. VIA DE VENTURA, SUITE 190, SCOTTSDALE AZ 85258
Jaisim Shah	director	C/O PROTINE DESIGN LAB, 37481 MARSTEN DR, NEWARK CA 94560
Yue Alexander Wu	director	C/O SORRENTO THERAPEUTICS, INC., 9380 JUDICIAL DRIVE, SAN DIEGO CA 92121
David Lemus	director	C/O SORRENTO THERAPEUTICS, INC., 4955 DIRECTOR'S PLACE, SAN DIEGO CA 92121
Abg Management Ltd	10 percent owner	UNIT 3002-04,30TH FLOOR,GLOUCESTER TOWER, THE LANDMARK,15 QUEEN'S ROAD CENTRAL, HONG KONG K3 000000
Jiong Shao	officer: Chief Financial Officer	SUITE 1003-1004, 10/F, ICBC TOWER, THREE GARDEN ROAD, CENTRAL, HONG KONG F4 000000
George K Ng	officer: See Remarks	C/O SORRENTO THERAPEUTICS, INC., 6042 CORNERSTONE COURT WEST, SUITE B, SAN DIEGO CA 92121