What is ESSA Pharma 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, ESSA Pharma's Probability of Financial Distress (%) is 0.02%.
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 ESSA Pharma's Probability of Financial Distress (%)
For the Biotechnology subindustry, ESSA Pharma'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.
ESSA Pharma's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, ESSA Pharma's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where ESSA Pharma's Probability of Financial Distress (%) falls into.
ESSA Pharma 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 |
| = | -8.34 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
ESSA Pharma (ESSA Pharma) Business Description
Traded in Other Exchanges
N/A
Address
999 West Broadway Street, Suite 720, Vancouver, BC, CAN, V5Z 1K5
ESSA Pharma Inc is a pharmaceutical company. The company is focused on the development of small molecule drugs for the treatment of castration-resistant prostate cancer. The company is developing drugs that selectively block the amino-terminal domain of the androgen receptor, potentially overcoming the known AR-dependent resistance mechanisms of CRPC and providing CRPC patients with the potential for increased progression-free and overall survival.
Executives
| Peter Virsik |
officer: Chief Operating Officer |
131 ESCANYO WAY, PORTOLA VALLEY CA 94028 |
| David Ross Parkinson |
director, officer: Chief Executive Officer |
C/O THRESHOLD PHARMACEUTICALS, INC., 170 HARBOR WAY SUITE 300, SOUTH SAN FRANCISCO CA 94080 |
| Franklin M Berger |
director |
1000 MARINA BLVD, STE 200, BRISBANE CA 94005 |
| Lauren Merendino |
director |
C/O MYOVANT SCIENCES INC., 2000 SIERRA POINT PARKWAY, 9TH FLOOR, BRISBANE CA 94005 |
| David S. Wood |
officer: Chief Financial Officer |
3516 WEST 33RD AVE, VANCOUVER A1 V6N 2H4 |
| Biotech Growth N V |
10 percent owner |
ARA HILL TOP BUILDING, UNIT A-5, PLETTERIJWEG OOST 1, CURACAO, WILLEMSTAD P8 000000 |
| Philip W. Kantoff |
director |
3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104 |
| Bvf Gp Holdings 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 I Gp Llc |
10 percent owner |
44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104 |
| Bvf Partners Os Ltd. |
other: See Explanation of Responses |
P.O. BOX 309 UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Mark N Lampert |
10 percent owner |
1 SANSOME ST, 30TH FL, SAN FRANCISCO CA 94104 |
| Biotechnology Value Fund Ii Lp |
other: See Explanation of Responses |
44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104 |
| Bvf Inc/il |
10 percent owner |
44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104 |
| Bvf Partners L P/il |
10 percent owner |
44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104 |
ESSA Pharma (ESSA Pharma) Headlines
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