ARVNCAUTIOUS

ARVN Gross Margin Analysis

92.9%

Higher than 97% of Healthcare sector peers

Updated 2555h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods or services.

Sector Performance

97th percentile

ARVN

92.9%

Sector Median

68.3%

Sector Avg

-55.4%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods or services.

Arvinas’s current gross margin of 92.9% is far above the healthcare sector median of 69.4%, placing it in the 98th percentile among its peers. Because the company has only a single quarter of data available, year-over-year and quarter-over-quarter changes are listed as N/A, and no trend direction can be assessed. A very high gross margin relative to peers typically indicates strong pricing power or a low-cost business model, but the lack of trend data means investors cannot gauge whether this level is sustainable. This metric supports the CAUTIOUS overall verdict: while the margin is excellent, the absence of a performance history and the generally high-risk nature of early-stage biotech stocks warrant a guarded approach.

Frequently Asked Questions

What does the Gross Margin tell investors about ARVN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ARVN's Gross Margin compare to its sector?

ARVN's Gross Margin of 92.9% compares to a Healthcare sector median of 68.3%, placing it in the 97th percentile.

Who are ARVN's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: AMGN (68.2%), BLUE (68.4%), TECH (66.9%), EXAS (70.1%), ALGN (70.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.