What is Kodiak Sciences 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, Kodiak Sciences's Probability of Financial Distress (%) is 1.14%.
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 Kodiak Sciences's Probability of Financial Distress (%)
For the Biotechnology subindustry, Kodiak Sciences'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.
Kodiak Sciences's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Kodiak Sciences's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Kodiak Sciences's Probability of Financial Distress (%) falls into.
Kodiak Sciences 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 |
| = | -4.46 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.14% |
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).
Kodiak Sciences (Kodiak Sciences) Business Description
Traded in Other Exchanges
Address
1200 Page Mill Road, Palo Alto, CA, USA, 94304
Kodiak Sciences Inc is a biopharmaceutical company specializing in novel therapeutics to treat high-prevalence retinal diseases. The product candidate of the company is KSI-301, which is a novel antibody biopolymer conjugate, in treatment-naive subjects with neovascular wet AMD.
Executives
| Jason Ehrlich |
officer: See Remarks |
1200 PAGE MILL ROAD, PALO ALTO CA 94304 |
| John A. Borgeson |
officer: See Remarks |
1200 PAGE MILL ROAD, PALO ALTO CA 94304 |
| Baker Bros. Advisors Lp |
director, 10 percent owner |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
| Victor Perlroth |
director, 10 percent owner, officer: Chairman, President and CEO |
1200 PAGE MILL ROAD, PALO ALTO CA 94304 |
| Julian Baker |
director, 10 percent owner |
BAKER BROS. ADVISORS LP, 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 |
| Baker Brothers Life Sciences Lp |
director, 10 percent owner |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
| L.p. 667, |
director, 10 percent owner |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
| Baker Bros. Advisors (gp) Llc |
director, 10 percent owner |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
| Charles A Bancroft |
director |
BRISTOL-MYERS SQUIBB COMPANY, ROUTE 206 & PROVINCE LINE ROAD, PRINCETON NJ 08543 |
| Hong Liang |
officer: See Remarks |
2631 HANOVER STREET, PALO ALTO CA 94304 |
| Richard S Levy |
director |
860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014 |
| Taiyin Yang |
director |
2631 HANOVER STREET, PALO ALTO CA 94304 |
| Robert Profusek |
director |
P.O. BOX 696000, SAN ANTONIO TX 78269-6000 |
| Bassil I Dahiyat |
director |
C/O XENCOR, INC., 111 WEST LEMON AVENUE, MONROVIA CA 91016 |
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