Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', KPTI's gross profit margin was 98.4%, showing profitability after production and operational costs. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 56.8%.
• In '2022', KPTI's gross profit margin was 96.7%, showing profitability after production and operational costs. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 60.5%. Industry average increased by 3.7% compared to previous year.
• In '2023', KPTI's gross profit margin was 96.6%, showing profitability after production and operational costs. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 45.0%. Industry average declined by 15.5% from previous year.
• In '2024', KPTI's gross profit margin was 95.9%, showing profitability after production and operational costs. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 60.1%. Industry average increased by 15.1% compared to previous year.
Overall, KPTI's gross profit margin has consistently declined during the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.