What is Concert 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, Concert 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 Concert Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, Concert 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.
Concert Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Concert Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Concert Pharmaceuticals's Probability of Financial Distress (%) falls into.
Concert 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 |
| = | -7.92 |
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).
Concert Pharmaceuticals (Concert Pharmaceuticals) Business Description
Traded in Other Exchanges
N/A
Address
65 Hayden Avenue, Suite 3000N, Lexington, MA, USA, 02421
Concert Pharmaceuticals Inc is a clinical-stage biopharmaceutical company. The company aims to discover and develop small-molecule drugs by incorporating new elements into known molecules or by leveraging the currently approved drugs to be used for new treatments. The pipeline consists of small molecules designed for oral administration to cure cystic fibrosis, inflammation, narcolepsy, residual schizophrenia, major depressive disorder, and Alzheimer's agitation.
Executives
| James V Cassella |
officer: Chief Development Officer |
2091 STIERLIN COURT, MOUNTAIN VIEW CA 94043 |
| Marc A. Becker |
officer: CFO, PFO |
175 CROSSING BLVD., 4TH FLOOR, FRAMINGHAM MA 01702 |
| Nancy Stuart |
officer: Chief Operating Officer |
99 HAYDEN AVENUE, SUITE 500, LEXINGTON MA 02421 |
| Jeffrey A Munsie |
officer: Chief Legal Officer |
CONCERT PHARMACEUTICALS, INC., 65 HAYDEN AVENUE, SUITE 3000N, LEXINGTON MA 02421 |
| Roger D Tung |
director, officer: Chief Executive Officer |
99 HAYDEN AVENUE, SUITE 500, LEXINGTON MA 02421 |
| Peter Barton Hutt |
director |
|
| Thomas G Auchincloss |
director |
C/O METABOLIX, INC., 21 ERIE STREET, CAMBRIDGE MA 02139 |
| Richard Aldrich |
director |
1365 MAIN STREET, WALTHAM MA 02451 |
| Heek Christi Van |
director |
4001 MIRANDA AVENUE, PALO ALTO CA 94304 |
| Biotechnology Value Fund L P |
other: See Explanation of Responses |
44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104 |
| Jesper Hoeiland |
director |
C/O RADIUS HEALTH, INC., 950 WINTER STREET, WALTHAM MA 02451 |
| Ronald W Barrett |
director |
C/O XENOPORT, INC., 3410 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051 |
| Wendall Wierenga |
director |
12790 EL CAMINO REAL, C/O NEUROCRINE BIOSCIENCES, SAN DIEGO CA 92130 |
| Wilfred E Jaeger |
director |
C/O THREE ARCH PARTNERS, 3200 ALPINE RD, PORTOLA VALLEY CA 94028 |
| Meghan Fitzgerald |
director |
C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511 |
Concert Pharmaceuticals (Concert Pharmaceuticals) Headlines
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