31 Biopharmaceutical Companies Facing High Bankruptcy Risk in 2020
Based on CreditRiskMonitor's FRISK scoring system, BioPharma Dive identified 31 biopharmaceutical companies listed on major U.S. exchanges, with stock prices above $1 and market capitalizations exceeding $50 million, as having the highest bankruptcy risk over the next 12 months. The list includes large pharmaceutical companies such as Teva Pharmaceutical and Bausch Health, as well as smaller biotech firms like Clovis Oncology and Puma Biotechnology.
31 Biopharma Companies Facing High Bankruptcy Risk in 2020
Editor's Note:This article is part of a series on bankruptcies in the biopharma industry. Clickhereto view the main article on how threats facing the industry could lead to more bankruptcy filings; clickhereto view a running list of biopharma bankruptcies in 2019.
Operational struggles, heavy debt, and legal liabilities put some industry players at particularly high risk of filing for bankruptcy in the near term, including large drugmakers such as Teva Pharmaceutical and Bausch Health, as well as smaller biotech companies like Clovis Oncology and Puma Biotechnology.
An analysis by BioPharma Dive identified 31 distressed biopharma companies with the highest risk of bankruptcy over the next 12 months.
Although bankruptcies are relatively rare in the pharmaceutical industry, the number of filings has risen in 2019, driven by growing legal, political, and market pressures that could push more companies to zero.
BioPharma Dive used data from CreditRiskMonitor, which calculates the probability of a company going bankrupt within the next year using a 10-point scale called the FRISK score.
| FRISK Score | Probability of Bankruptcy within 12 Months |
|---|
The metric rates thousands of companies, with a FRISK score of 1 representing the most financially fragile. CreditRiskMonitor incorporates risk indicators such as bond agency ratings, stock volatility, financial ratios, and crowdsourced subscriber data.
The company says the FRISK score has been 96% accurate in predicting bankruptcies. Among pharmaceutical companies that went bankrupt this year, each had a FRISK score of 1 or 2 beforehand.
A typical pharmaceutical company has a FRISK score of 7. BioPharma Dive filtered the following list to include biopharma companies trading on major U.S. exchanges, with current stock prices above $1 and market capitalizations exceeding $50 million, resulting in a list of 31 companies.
Clickhereto view an interactive table of the full list. Below are some of the most notable companies on the list and why they are struggling. Market cap and stock price percentage changes are as of November 16.
31 Biopharma Companies Facing High Bankruptcy Risk
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