What is AMAG 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, AMAG Pharmaceuticals's Probability of Financial Distress (%) is 0.00%.
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 AMAG Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, AMAG 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.
AMAG Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, AMAG Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where AMAG Pharmaceuticals's Probability of Financial Distress (%) falls into.
AMAG 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
AMAG Pharmaceuticals (AMAG Pharmaceuticals) Business Description
Traded in Other Exchanges
N/A
Address
1100 Winter Street, Waltham, MA, USA, 02451
AMAG Pharmaceuticals Inc primarily uses its nanoparticle technology to develop therapeutic compounds to treat anemia in patients suffering from chronic kidney disease, as well as imaging agents that assist in identifying cancerous tumors. The company recently received Food and Drug Administration approval for Feraheme, a novel iron replacement drug for CKD patients suffering from anemia, and also offers GastroMARK, an imaging aid used with magnetic resonance imaging. Most of the revenues are generated through the sale of Feraheme and Makena which is a hydroxyprogesterone caproate injection.
Executives
| Camber Capital Management Lp |
10 percent owner |
101 HUNTINGTON AVENUE, SUITE 2101, BOSTON MA 02199 |
| Anthony Casciano |
officer: Chief Operating Officer |
C/O AMAG PHARMACEUTICALS, INC. 1100 WINTER STREET WALTHAM MA 02451 |
| Brian Piekos |
officer: Interim CFO |
C/O AMAG PHARMACEUTICALS, INC., 1100 WINTER STREET, WALTHAM MA 02451 |
| David Edward Johnson |
director, 10 percent owner |
590 MADISON AVENUE, NEW YORK NY 10022 |
| James R Sulat |
director |
|
| Davey Scoon |
director |
C/O AMAG PHARMACEUTICALS, INC., 1100 WINTER STREET, WALTHAM MA 02451 |
| John A. Fallon |
director |
C/O INSULET CORPORATION, 9 OAK PARK DRIVE, BEDFORD MA 01730 |
| Anne M. Phillips |
director |
C/O TREVENA, INC., 1018 WEST 8TH AVENUE, KING OF PRUSSIA PA 19406 |
| Paul R. Fonteyne |
director |
C/O RESTORBIO, INC., 501 BOYLSTON STREET SUITE 6102, BOSTON MA 02116 |
| Gino Santini |
director |
C/O AMAG PHARMACEUTICALS, INC., 1100 WINTER STREET, WALTHAM MA 02451 |
| Scott Dunseth Myers |
director, officer: President & CEO |
C/O CASCADIAN THERAPEUTICS, INC., 3101 WESTERN AVE., SUITE 600, SEATTLE WA 98121 |
| Kelly Schick |
officer: Chief Human Resources Officer |
C/O AMAG PHARMACEUTICALS, INC., 1100 WINTER STREET, WALTHAM MA 02451 |
| Armistice Capital, Llc |
10 percent owner |
510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
| Armistice Capital Master Fund Ltd. |
10 percent owner |
C/O ARMISTICE CAPITAL, LLC, 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
| Steven Boyd |
10 percent owner |
510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
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