4Q07 cash-burn guidance includes approx.
$6-8M during the quarter from a new partner:
Cash on hand as of 9/30/07 was $21.8M, a decrease of $7.9M relative to the $29.7M balance on 6/30/07. Guidance for the cash balance on 12/31/07 is now $20-22M (marginally lower than the $20.7-22.7M prior guidance) based on an expected burn of no more than $1.8M during 4Q07.
Such a low cash burn during 4Q07 will require a payment during the quarter from the yet to be named US ATryn partner. Based on the comparison of cash burn during 3Q07 and expected burn during 4Q07, it looks like GTC expects the amount to be received in 4Q07 from the US ATryn partner to be in the $6-8M range. The key to the economics of the partnership deal will of course be the clinical and regulatory milestone payments, particularly in the DIC indication.
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”