Biotech Values

[DewDiligence]

Re: RVNC liquidity

RVNC’s 12/31/18 pro forma working capital was $322.5M This figure consists of: $184.5M net current assets on the 12/31/18 balance sheet—excluding the “deferred revenue” line, which is an accounting artifact rather than bona fide liability (https://www.sec.gov/ix?doc=/Archives/edgar/data/1479290/000147929019000030/rvnc1231201810k.htm ); the $30M up-front payment from the Greater China licensing deal with Fosun Pharma (#msg-145245703) that was announced in Dec 2018 and received in Jan 2018; and $108.0M net proceeds from the public offering announced on 1/17/19, including net proceeds from exercise of the underwriter’s option (#msg-146164001).

RVNC’s guidance for 2019 operating cash burn is $148-158M (#msg-147131867). If we assume that January-February 2019 had operating cash burn at the midpoint of this range, then $25.5M has been burned between 12/31/18 and 2/28/19, leaving 2/28/19 working capital of $297.0M.