Everything (Week 2) Flashcards
What is cash available relative to level of payables an indicator of?
It is an indicator of how able the company is of paying its bills.
Asset levels relative to sales volume indicator of?
This is an indicator of how efficient the company’s capital is being used to lead to sales. (Asset turn); How efficient investments (machinery, inventory) generate revenue.
Gross margin as a percentage of sales determines what?
This determines how much money can be spent on SG&A costs.
What 2 things is ratio analysis In financial statements most useful for?
- Comparing year-to-year performance of different metrics within the same company
- Comparing companies in an industry
What are the common ratios that give different information on the health of the company (4)
- Liquidity
- Asset management
- Profitability
- Leverage
What is a Common size statement - what two statements can become this? describe them both.
Common statement is making items a percentage of the highest item.
Common statement income statement (usually percentages of net sales) and Common statement balance sheet (a good financial analysis of where assets are being spent - usually a percentage of total assets)
Liquidity ratio - What does it measure? what are the 2 ratios?
It measures how able the company is to pay its bills.
Current ratio = Current assets/Current liabilities (value of 2.0 for manufacturing is a good value)
Quick ratio = Cash + Receivables/Current liabilities (known as “acid test” - more conservative measure.
Asset management ratios, what does it measure, what are the 3 terms?
This measures how well the company is making use of its assets.
Inventory turn = COGS/Inventory (measures volume that is turned over with single inventory purchase- these cycles vary depending on industry
Asset turn = Annual sales/Assets (measures a company’s ability to convert its assets to sales - low number indicates it takes a lot of capital to create more sales, high number indicates it takes less capital to create sales.
Days receivable = Receivables x 365/Annual sales (measures how long it takes a customer to pay after shipping item - usually 45-60 day average)
What are Profitability ratios (4) and what do they measure?
These ratios measure how profitable the company is.
Return on assets = Net income/Assets (measures how well the company’s assets create profit)
Return on shareholders’ equity = Net income/Shareholders’ equity (measures how well the company’s funding creates profit)
Gross margin = Net sales - COGS/Net sales (measures how much can be spent on SG&A); also called gross profit
Profit margin = Net income/Net sales - how profitable the business is.
What are the Leverage ratios (2) and what does it measure (2). What are they also called?
Leverage ratios are able to 1. Reveal how well a company can deal a loss
2. Measure how well a company can pay of its short term/long term debt
Debt to equity ratio = Current debt + Long term debt/Shareholders’ equity (measures the risk the investor is taking and also a surrogate metric of how much capital is required for output)
Debt ratio = Current debt + Long term debt/Assets
“Safety ratios”
What are good ways to create company comparisons when evaluating ratios (3)?
- Historical
- Competition
- Industry
ADDF access?
Site of resources for companies including CROs
How does DAT deficiency and LRRK genetics affect PD progression?
DAT deficiency using PET imaging has been shown to identify fast PD progressors.
LRRK2 patients have been shown to progress slower.
Creative destructive labs?
Mentoring program in NY for companies
What is GAAP?
Generally Accepted Accounting principles - all financial statements need to abide by these rules
Inventory valuation and costs (3 different methods to analyze)?
- Average cost basis - The average cost of inventory (not very accurate and rarely used)
- FIFO - first in first out (aggressive measure taking inventory value of first cost of inventory, thereby increasing profit
- LIFO - last in first out (conservative measure, taking cost of last inventory making profit lower)
Alkahest (2019)
Phase 2 in Mild to moderate AD and Phase 2 in Severe AD, Eotaxin antibody to Wet AMD in Phase 2 and inflammatory psychosis in Phase 1
Amylyx (2019)
Combination therapy of pan-HDAC inhibitor (Buderyl) and modulator of mitochondria (Tuderyl) in Phase 2 in ALS and AD and Phase 1 in Woflam and MS.
TLR4/NLRP3 mechanism
TLR4 (can get activated by pathogens, abeta, alpha synuclein, etc) and activated NF-kB which upregulates NLRP3. This induces IL-1b, IL-18, and pyroptosis
Marinus Pharmaceuticals (2019)
Ganaxolone (GABAa modulator) in Phase 3 for CDK5 deficiency (CDD) and; Phase 2 in postpartum depression and refractor stratus epilepticus
What drug from Sage Therapeutics got approved in March 2019?
Brexanolone (GABAa modulator) now marketed as Zulresso ($7000/vial, $34K for whole treatment), 60 hour infusion required
Anatomy of a good target (5)
- Human genetics
- Dysregulation or modulation in specific cells or tissues
- Druggable
- Effect of drug on pathophysiology
- Target engagement using biomarker
PLCg2
Amplifier of TREM2
What is Z’?
The number calculated to see how big your signal vs. noise is; 0.5 in cell assays is good.
How does Tau-PET relate to AD progression?
Tau-PET in the parietal lobe can detect patients who are fast progressors (patients who will convert from MCI to AD)
How much and from who did Karuna Pharmaceuticals raise in March 2019?
$68M Series B from ARCH, Fidelity, Pivotal bioVentures, Partner Management fund, Eventide, Sands Capital, Wellcome Trust, PureTech Health, Alexandria
When you are optimizing a chemical, what is the correct order of operations?
If chemical has good PK/PD, good to use that molecule and then optimize for potency (easier to optimize for potency vs. PK/PD properties)
How many H-bonds are able to allow for BBB-penetration?
2-3 bonds
