What is Sage Therapeutics 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, Sage Therapeutics's Probability of Financial Distress (%) is 100.00%.
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 Sage Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Sage Therapeutics'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.
Sage Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sage Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Sage Therapeutics's Probability of Financial Distress (%) falls into.
Sage Therapeutics 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 |
| = | 10.79 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 100.00% |
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).
Sage Therapeutics (Sage Therapeutics) Business Description
Traded in Other Exchanges
Address
215 First Street, Cambridge, MA, USA, 02142
Sage Therapeutics Inc is a clinical-stage biopharmaceutical company focused on brain health medicines. The company is targeting diseases and disorders of the brain with three key focus areas: depression, neurology and neuropsychiatry; also targeting two critical central nervous system, or CNS, receptor systems, GABA and NMDA. The GABA receptor family, which is recognized as the inhibitory neurotransmitter in the CNS, mediates downstream neurologic and bodily function via activation of GABAA receptors. The NMDA-type receptors of the glutamate receptor system are a excitatory receptor system in the CNS. Dysfunction in these systems is implicated in a broad range of CNS disorders.
Executives
| Elizabeth Barrett |
director |
C/O SAGE THERAPEUTICS, INC., 215 FIRST STREET, CAMBRIDGE MA 02142 |
| Jessica Federer |
director |
C/O SAGE THERAPEUTICS, INC., 215 FIRST STREET, CAMBRIDGE MA 02142 |
| Jeffrey M Jonas |
director, officer: See Remarks |
ROBERTS SHERIDAN & KOTEL, 12 EAST 49TH STREET 30TH FL, NEW YORK NY 10017 |
| Barry E Greene |
director |
C/O ACORDA THERAPEUTICS, 420 SAW MILL RIVER ROAD, ARDSLEY NY 10502 |
| Laura Gault |
officer: Chief Medical Officer |
C/O SAGE THERAPEUTICS, INC., 245 FIRST STREET, SUITE 16, CAMBRIDGE MA 02142 |
| George Golumbeski |
director |
C/O CELGENE CORP., 86 MORRIS AVENUE, SUMMIT NJ 07901 |
| Christopher Benecchi |
officer: Chief Commercial Officer |
C/O SAGE THERAPEUTICS, INC., 215 FIRST STREET, CAMBRIDGE MA 02142 |
| James M Frates |
director |
88 SIDNEY ST, CAMBRIDGE MA 021394136 |
| Biogen Inc. |
10 percent owner |
225 BINNEY STREET, CAMBRIDGE MA 02142 |
| Biogen Ma Inc. |
10 percent owner |
225 BINNEY STREET, CAMBRIDGE MA 02142 |
| Albert Robichaud |
officer: Chief Scientific Officer |
215 FIRST STREET, CAMBRIDGE MA 02142 |
| Michael Cloonan |
officer: Chief Business Officer |
C/O SAGE THERAPEUTICS, INC., 215 FIRST STREET, CAMBRIDGE MA 02142 |
| Anne Marie Cook |
officer: General Counsel |
101 MAIN STREET, SUITE 1850, CAMBRIDGE MA 02142 |
| Steven M Paul |
director |
C/O ELI LITTY & CO, LIIY CORPORATE CENTER DC 1093, INDIANAPOLIS IN 46285 |
| Kimi Iguchi |
officer: See Remarks |
100 FOXBOROUGH BOULEVARD, SUITE 240, FOXBOROUGH MA 02035 |
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