What is Seagen 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, Seagen's Probability of Financial Distress (%) is 50.00%.
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 Seagen's Probability of Financial Distress (%)
For the Biotechnology subindustry, Seagen'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.
Seagen's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Seagen's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Seagen's Probability of Financial Distress (%) falls into.
Seagen 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% |
| = | 50.00% |
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).
Seagen (Seagen) Business Description
Traded in Other Exchanges
N/A
Address
21823 - 30th Drive South East, Bothell, WA, USA, 98021
Seagen (formerly known as Seattle Genetics) is a biotech firm that develops and commercializes therapies to treat cancers. Seagen's therapies are based on antibody-drug conjugate technology that utilizes the targeting ability of monoclonal antibodies to deliver cell-killing agents directly to cancer cells. The company's lead product, Adcetris, has received approval for six indications to treat Hodgkin lymphoma and T-cell lymphoma. Other approved products include Padcev for bladder cancer, Tukysa for breast cancer, and Tivdak for cervical cancer. The company has several other oncology programs in pivotal trials. Seagen also licenses its antibody-drug conjugate technology to several leading biotechnology and pharmaceutical companies.
Executives
| David R Epstein |
director, officer: Chief Executive Officer |
INTERNATIONAL FLAVORS & FRAGRANCES INC., 521 W. 57TH STREET, NEW YORK NY 10019 |
| Vaughn B Himes |
officer: See Remarks |
C/O SEATTLE GENETICS, INC., 21823 30TH DRIVE SE, BOTHELL WA 98021 |
| Charles R Romp |
officer: EVP, Commercial |
21823 30TH DRIVE SE, BOTHELL WA 98021 |
| Roger D Dansey |
officer: See Remarks |
21823 30TH DRIVE SE, BOTHELL WA 98021 |
| Jean I Liu |
officer: GC & EVP, Legal Affairs |
21823 30TH DRIVE SE, BOTHELL WA 98021 |
| Todd E Simpson |
officer: Chief Financial Officer |
|
| Daniel G Welch |
director |
4611 UNIVERSITY DR, 4 UNIVERSITY PLACE, DURHAM NC 27707 |
| David W Gryska |
director |
749 N MARY AVE, SUNNYVALE CA 94085 |
| Sandra M Swain |
director |
21823 30TH DRIVE SE, BOTHELL WA 98021 |
| Ted W Love |
director |
C/O GLOBAL BLOOD THERAPEUTICS, INC., 400 EAST JAMIE COURT, SUITE 101, SOUTH SAN FRANCISCO CA 94080 |
| Clay B Siegall |
director, officer: President and CEO |
21823 30TH DR SE, BOTHELL WA 98021 |
| Baker Bros. Advisors Lp |
director, 10 percent owner |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
| Felix Baker |
director, 10 percent owner |
BAKER BROS. ADVISORS LP, 860 WASHINGTON STREET 3RD FLOOR, NEW YORK NY 10014 |
| Julian Baker |
director, 10 percent owner |
BAKER BROS. ADVISORS LP, 860 WASHINGTON STREET 3RD FLOOR, NEW YORK NY 10014 |
| Baker Brothers Life Sciences Lp |
director, 10 percent owner |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
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