What is Pieris 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, Pieris Pharmaceuticals's Probability of Financial Distress (%) is 0.26%.
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 Pieris Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, Pieris 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.
Pieris Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Pieris Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Pieris Pharmaceuticals's Probability of Financial Distress (%) falls into.
Pieris 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 |
| = | -5.95 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.26% |
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).
Pieris Pharmaceuticals (Pieris Pharmaceuticals) Business Description
Traded in Other Exchanges
Address
225 Franklin Street, 26th Floor, Boston, MA, USA, 02110
Pieris Pharmaceuticals Inc is a clinical-stage biopharmaceutical company, which engages in the discovery and development of the Anticalin class of biotherapeutics. Anticalin proteins are engineered versions of lipocalins, human proteins that naturally bind, store and transport a wide spectrum of molecules. The company with the help of technology creates differentiated drugs such as PRS-080, PRS-060, and PRS-332 that can help patients suffering from cancer, severe asthma, anemia, and other medical conditions with a high unmet medical need. Geographically, all the operation of the firm functions through the region of the United States.
Executives
| Ann Barbier |
director |
255 STATE STREET, C/O PIERIS PHARMACEUTICALS,INC., BOSTON MA 02109 |
| Peter A Kiener |
director |
40 GUEST STREET, BOSTON MA 02135 |
| Maya R. Said |
director |
C/O PIERIS PHARMACEUTICALS, INC., 255 STATE STREET, 9TH FLOOR, BOSTON MA 02109 |
| Matthew L Sherman |
director |
C/O DECIPHERA PHARMACEUTICALS, INC., 200 SMITH STREET, WALTHAM MA 02451 |
| Christopher P Kiritsy |
director |
|
| Bvf I Gp Llc |
10 percent owner |
44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104 |
| Bvf Ii Gp Llc |
other: See Explanation of Responses |
44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104 |
| Bvf Gp Holdings Llc |
10 percent owner |
44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104 |
| Shane Olwill |
officer: Chief Development Officer |
C/O PIERIS PHARMACEUTICALS, INC., 255 STATE STREET, 9TH FLOOR, BOSTON MA 02109 |
| Ahmed Mousa |
officer: Chief Business Officer |
255 STATE STREET, 9TH FLOOR, C/O PIERIS PHARMACEUTICALS, INC., BOSTON MA 02109 |
| Hitto Kaufmann |
officer: Chief Scientific Officer |
C/O PIERIS PHARMACEUTICALS, INC., 255 STATE STREET, 9TH FLOOR, BOSTON MA 02109 |
| Thomas Bures |
officer: Chief Financial Officer |
C/O PIERIS PHARMACEUTICALS, INC., 255 STATE STREET, 9TH FLOOR, BOSTON MA 02109 |
| Tim Demuth |
officer: Chief Medical Officer |
C/O PIERIS PHARMACEUTICALS, INC., 255 STATE STREET, 9TH FLOOR, BOSTON MA 02109 |
| Aquilo Capital Management, Llc |
10 percent owner |
ONE LETTERMAN DRIVE, SUITE D4900, BUILDING D, SAN FRANCISCO CA 94129 |
| Biotechnology Value Fund L P |
other: See Explanation of Responses |
44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104 |
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