What is Aurinia Pharmaceuticals Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Aurinia Pharmaceuticals's Probability of Financial Distress (%) is 0.04%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Aurinia Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, Aurinia Pharmaceuticals's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
Aurinia Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Aurinia Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Aurinia Pharmaceuticals's Probability of Financial Distress (%) falls into.
Aurinia Pharmaceuticals Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.89 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Aurinia Pharmaceuticals (Aurinia Pharmaceuticals) Business Description
Traded in Other Exchanges
Address
4464 Markham Street, Suite 1203, Victoria, BC, CAN, V8Z 7X8
Aurinia Pharmaceuticals Inc is a biopharmaceutical company. It provides products for patients suffering from serious diseases with a high unmet medical need. The firm is developing LUPKYNIS (voclosporin), an investigational drug, for the treatment of lupus nephritis (LN), focal segmental glomerulosclerosis (FSGS), and Dry Eye Syndrome (DES). Geographically, it derives maximum revenue from the United States.
Executives
| Robert T Foster |
director |
C/O CONTRAVIR PHARMACEUTICALS, INC., 399 THORNALL STREET, FIRST FLOOR, EDISON NJ 08837 |
| Karen L. Smith |
director |
C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2 |
| Jeffrey Allen Bailey |
director |
BIODELIVERY SCIENCES INTERNATIONAL, INC., 4131 PARKLAKE AVE., SUITE 225, RALEIGH NC 27612 |
| R. Hector Mackay-dunn |
director |
#1203-4464 MARKHAM STREET, VICTORIA A1 V8Z7X8 |
| Jayne David R.w. |
director |
#1203-4464 MARKHAM STREET, VICTORIA A1 BC V8Z7X8 |
| Jill Leversage |
director |
#1203-4464 MARKHAM STREET, VICTORIA A1 V8Z 7X8 |
| Daniel Billen |
director |
#1203-4464 MARKHAM STREET, VICTORIA A1 V8Z 7X8 |
| Joseph P Hagan |
director |
3344 N. TORREY PINES COURT, SUITE 200, LA JOLLA CA 92037 |
| Brinda Balakrishnan |
director |
#1203-4464 MARKHAM STREET, VICTORIA A1 V8Z7X8 |
| Peter Greenleaf |
director, officer: Chief Executive Officer |
ONE MEDIMMUNE WAY, GAITHERSBURG MD 20878 |
| Joseph M Miller |
officer: Chief Financial Officer |
C/O CERECOR INC., 400 EAST PRATT STREET, SUITE 606, BALTIMORE MD 21202 |
| Stephen P. Robertson |
officer: EVP, General Counsel |
#1203-4464 MARKHAM STREET, VICTORIA A1 BC V8Z7X8 |
| Milne George M Jr |
director |
|
| Matthew Maxwell Donley |
officer: Ex VP, Intern'l Operations |
4520 EAST WEST HIGHWAY, 3RD FLOOR, BETHESDA MD 20814 |
| Scott Michael Habig |
officer: Chief Commercial Officer |
#1203-4464 MARKHAM STREET, VICTORIA A1 V8Z7X8 |
Aurinia Pharmaceuticals (Aurinia Pharmaceuticals) Headlines
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