What is Vera 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, Vera Therapeutics's Probability of Financial Distress (%) is 0.03%.
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 Vera Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Vera 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.
Vera Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vera Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Vera Therapeutics's Probability of Financial Distress (%) falls into.
Vera 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 |
| = | -8.15 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Vera Therapeutics (Vera Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
8000 Marina Boulevard, Suite 120, Brisbane, CA, USA, 94005
Vera Therapeutics Inc is a clinical stage biotechnology company. It is focused on developing and commercializing transformative treatments for patients with serious immunological diseases. The company's lead product candidate is atacicept, a fusion protein self-administered as a subcutaneous injection once weekly that blocks both B lymphocyte stimulator and a proliferation-inducing ligand, which stimulate B cells and plasma cells to produce autoantibodies contributing to certain autoimmune diseases.
Executives
| Commodore Capital Lp |
10 percent owner |
444 MADISON AVENUE, 35TH FLOOR, NEW YORK NY 10022 |
| Marshall Fordyce |
director, officer: President and CEO |
C/O VERA THERAPEUTICS, INC., 8000 MARINA BOULEVARD, SUITE 120, BRISBANE CA 94005 |
| Celia Lin |
officer: Chief Medical Officer |
C/O VERA THERAPEUTICS, INC., 8000 MARINA BOULEVARD, SUITE 120, BRISBANE CA 94005 |
| Joanne Curley |
officer: Chief Development Officer |
C/O VISTAGEN THERAPEUTICS, INC., 343 ALLERTON AVE, SOUTH SAN FRANCISCO CA 94080 |
| Sean Grant |
officer: Chief Financial Officer |
C/O VERA THERAPEUTICS, INC., 8000 MARINA BOULEVARD, SUITE 120, BRISBANE CA 94005 |
| Beth C Seidenberg |
director |
|
| Sofinnova Management X-a, L.l.c. |
10 percent owner |
3000 SAND HILL ROAD, 4-250, MENLO PARK CA 94025 |
| Sofinnova Venture Partners X, L.p. |
10 percent owner |
3000 SAND HILL ROAD, 4-250, MENLO PARK CA 94025 |
| Longitude Capital Partners Iv, Llc |
10 percent owner |
2740 SAND HILL ROAD, 2ND FLOOR, MENLO PARK CA 94025 |
| Longitude Prime Partners, Llc |
10 percent owner |
2740 SAND HILL ROAD, 2ND FLOOR, MENLO PARK CA 94025 |
| Longitude Prime Fund, L.p. |
10 percent owner |
2740 SAND HILL ROAD, 2ND FLOOR, MENLO PARK CA 94025 |
| Patrick G Enright |
director, 10 percent owner |
CO LONGITUDE CAPITAL PARTNERS LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025 |
| Llp Abingworth |
10 percent owner |
38 JERMYN STREET, LONDON X0 SW1Y 6DN |
| Abingworth Bioventures 8 Lp |
10 percent owner |
38 JERMYN STREET, LONDON X0 SW1Y 6DN |
| Carlyle Group Inc. |
10 percent owner |
C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004 |
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