Eikon Therapeutics, Inc. — financial distress indicators
Financial-health summary
Eikon Therapeutics, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 40/100). The main indicators are losses in each of the last 3 years, operations consume cash and ohlson o-score signals likely failure. Independently, the Ohlson accounting model puts its 1-year failure probability at 60% and the market-implied (Merton) default probability is 19.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 0.39 → model probability 60%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Merton distance-to-default 0.88 σ → PD 19.0%.
Investment-grade issuers typically have 1-year PD well below 1%.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (11.75).
📰 Recent news scan
- Eikon Therapeutics Appoints Ching-Pin Chang, M.D., Ph.D. as Executive Vice President and Chief Scientific OfficerYahoo Finance · 2026-09-03
- Eikon Therapeutics Eyes Safer PARP1 Cancer Treatments With EIK1003, EIK1004Yahoo Finance · 2026-08-22
- Eikon Therapeutics to Participate in KOL Event on Therapeutic Use of PARP Inhibitors in Oncology Hosted by Cantor FitzgeraldYahoo Finance · 2026-08-18
- Eikon Therapeutics Announces Dose Selection for TeLuRide-006, an Ongoing Adaptive Phase 2/3 Trial of EIK1001 in Advanced MelanomaYahoo Finance · 2026-08-11
- Eikon Therapeutics Announces First Patient Dosed in TeLuRide-008, a Registrational Phase 2/3 Trial of EIK1001 in Non-Small Cell Lung CancerYahoo Finance · 2026-07-27
- Eikon Therapeutics Announces Seven Abstracts Accepted for Presentation at the 2026 European Society of Medical Oncology (ESMO) CongressYahoo Finance · 2026-07-20
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Eikon Therapeutics, Inc.'s financial-health indicators show?
As of 2026-10-08, Eikon Therapeutics, Inc.'s public financial data places it in the 'Watch' band with a distress score of 40/100, driven by losses in each of the last 3 years, operations consume cash and ohlson o-score signals likely failure. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Eikon Therapeutics, Inc.'s financial distress score?
40/100 ('Watch'). Ohlson O-score 0.39 (model 1-year failure probability 60%). Merton distance-to-default 0.88 σ (model default probability 19.0%).
What works in Eikon Therapeutics, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (11.75).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Pharma & Biotech companies with distress indicators
- ABVC BioPharma, Inc. (ABVC)Very weak 100/100
- AKAN (AKAN)Very weak 100/100
- Endovia Health Sciences, Inc. (EDVA)Very weak 100/100
- Elicio Therapeutics, Inc. (ELTX)Very weak 100/100
- IM Cannabis Corp. (IMCC)Very weak 100/100
- NeuroSense Therapeutics Ltd. (NRSN)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.