Gross Margin % is calculated as gross profit divided by its revenue. Dendreon's Gross Profit for the
three
months ended in Sep. 2014 was €29.1 Mil. Dendreon's Revenue for the
three
months ended in Sep. 2014 was €56.7 Mil. Therefore, Dendreon's Gross Margin % for the quarter that ended in Sep. 2014 was 51.32%.
The historical rank and industry rank for Dendreon's Gross Margin % or its related term are showing as below:
FRA:DNR'
s Gross Margin % Range Over the Past 10 Years
Min: 29.99 Med: 100 Max: 113.04
Current: 50.92
During the past 13 years, the highestGross Margin % of Dendreon was 113.04%. The lowest was 29.99%. And the median was 100.00%.
FRA:DNR's Gross Margin % is not ranked
in the Biotechnology industry.
Industry Median: 59.43
vs FRA:DNR: 50.92
Dendreon had a gross margin of 51.32% for the quarter that ended in Sep. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Dendreon was 0.00% per year.
Dendreon Gross Margin % Historical Data
The historical data trend for Dendreon'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.
Competitive Comparison of Dendreon's Gross Margin %
For the Biotechnology subindustry, Dendreon'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.
Dendreon's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Dendreon's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dendreon'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.
Dendreon (FRA:DNR) 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
Dendreon had a gross margin of 51.32% for the quarter that ended in Sep. 2014 => 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.
Dendreon Gross Margin % Related Terms
Thank you for viewing the detailed overview of Dendreon's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dendreon Corp is a Delaware corporation. The Company is a biotechnology company focused on the discovery, development and commercialization of novel therapeutics that improve cancer treatment options for patients. Its product portfolio includes active cellular immunotherapy and small molecule product candidates to treat a range of cancers. PROVENGE(r) (sipuleucel-T), is its first commercialized product licensed by the United States Food and Drug Administration, and is a first in class autologous cellular immunotherapy for the treatment of asymptomatic or minimally symptomatic, metastatic, castrate-resistant (hormone-refractory) prostate cancer. Prostate cancer is the most common non-skin cancer among men in the United States, with over one million men currently diagnosed with the disease, and the second cause of cancer deaths in men in the United States. The Company owns worldwide rights for PROVENGE. The Other potential product candidates we have under development include our investigational active cellular immunotherapy, DN24-02, which potentially may be used for the treatment of patients with bladder, breast, ovarian and other solid tumors expressing HER2/neu. In addition, the Company has developed an orally-available small molecule treatment targeting TRPM8 that could be applicable to multiple types of cancer. The Company currently depends on specialized vendor relationships that are not readily replaceable for some of the components for its active immunotherapy candidates. Products such as chemotherapeutics, androgen metabolism or androgen receptor antagonists, endothelin A receptor antagonists, antisense compounds, angiogenesis inhibitors and gene therapies for cancer are also under development by a number of companies and could potentially compete with PROVENGE and its other product candidates. The Company's competitors include major pharmaceutical companies. The Company is subject to a variety of federal, state and local regulations relating to the use, handling, storage and disposal of hazardous materials, including chemicals and radioactive and biological materials. The Company is also subject to regulation by the Occupational Safety and Health Administration ('OSHA'), and the Environmental Protection Agency ('EPA'), and to regulation under the Toxic Substances Control Act.
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