What is LadRx 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, LadRx's Probability of Financial Distress (%) is 1.23%.
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 LadRx's Probability of Financial Distress (%)
For the Biotechnology subindustry, LadRx'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.
LadRx's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, LadRx's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where LadRx's Probability of Financial Distress (%) falls into.
LadRx 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 |
| = | -4.39 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.23% |
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).
LadRx (LADX) Business Description
Traded in Other Exchanges
N/A
Address
11726 San Vicente Boulevard, Suite 650, Los Angeles, CA, USA, 90049
LadRx Corp operates as a biopharmaceutical research and development company in the healthcare sector of the United States. It is focused on the discovery, research, and clinical development of novel anti-cancer drug candidates that employ novel linker technologies to enhance the accumulation and release of cytotoxic anti-cancer agents at the tumor. The company develops Aldoxorubicin, which is meant to cure soft tissue sarcoma, a kind of tumor. It also develops Arimoclomol which is in development in Niemann Pick disease Type C (NPC) and Gaucher disease.
Executives
| Cary J Claiborne |
director |
3056 SENECA CHIEF TRAIL, ELLICOTT CITY MD 21042 |
| Stephen Snowdy |
officer: Chief Executive Officer |
C/O CYTRX CORPORATION, 11726 SAN VICENTE BOULEVARD, SUITE 650, LOS ANGELES CA 90049 |
| Jennifer K. Simpson |
director |
C/O DELCATH SYSTEMS, INC., 810 SEVENTH AVENUE, SUITE 3505, NEW YORK NY 10019 |
| Eric Curtis |
officer: Pres., Chief Operating Officer |
ONE MAIN STREET, SUITE 800, CAMBRIDGE MA 02142 |
| Felix Kratz |
officer: Vice President Drug Discovery |
11726 SAN VICENTE BLVD., SUITE 650, LOS ANGELES CA 90049 |
| Joel K Caldwell |
director |
11726 SAN VICENTE BLVD., SUITE 650, LOS ANGELES CA 90049 |
| Chawla Shanta M.d. |
officer: Senior VP-Drug Development |
11726 SAN VICENTE BLVD., SUITE 650, LOS ANGELES CA 90049 |
| Earl W Brien |
director |
11726 SAN VICENTE BLVD, SUITE 650, LOS ANGELES CA 90049 |
| Olivia C Ware |
officer: Chief Commercial Officer |
11726 SAN VICENTE BLVD, SUITE 650, LOS ANGELES CA 90049 |
| Cheryl Cohen |
director |
C/O MEDIVATION, INC., 201 SPEAR ST., 3RD FLOOR, SAN FRANCISCO CA 94105 |
| Eric Jay Selter |
director |
11726 SAN VICENTE BLVD., SUITE 650, LOS ANGELES CA 90049 |
| Anita J Chawla |
director |
11726 SAN VICENTE BLVD., SUITE 650, LOS ANGELES CA 90049 |
| Joseph Rubinfeld |
director |
C/O SUPERGEN INC, 4140 DUBLIN BLVD STE 200, DUBLIN CA 94568 |
| Douglas Scott Wieland |
officer: Sr VP - Drug Development |
11726 SAN VICENTE BLVD., SUITE 650, LOS ANGELES CA 90049 |
| Louis Ignarro |
director |
11726 SAN VICENTE BLVD, STE 650, LOS ANGELES CA 90049 |
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