Biotech Values

[DewDiligence]

GTCB cash position and guidance:

1. GTC had $19.4M in cash at the end of 1Q06 (#msg-12422836).

2. Adding the $16.2M net proceeds from the direct placement in July and the $2M milestone received from Leo Pharma on Aug 2 to the cash balance at the end of 1Q06 gives 19.4+16.2+2.0=$37.6M. Thus, GTC’s cash balance today (Aug 3) is $37.6M less whatever cash has been used for operations during Q3 to date.

3. Net cash use from operations for the second half of 2006 is expected to be $7-11M, according to today’s PR. Thus, barring unexpected developments, the cash balance at the end of 2006 is expected to be $26.6-30.6M. Please note that this range does not include any additional cash that may derive from warrant exercises.

4. $17.5M remains on GTC’s shelf registration. However, CFO Jack Green stated on today’s CC that cash usage during 2007 is expected to be similar to cash usage in 2006, and hence GTC believes there is ample cash to last into 2008.