Biotech Values

[DewDiligence]

> GTCB – Dew, back when we where waiting for atryn to be approved you would often give what you believed was fair value per share? Care to give us an update.<

The two best valuation comparators, in my opinion, are Pharming (#msg-17760532) and GlycoFi (#msg-11037571). These suggest a fair enterprise value for GTC in the $300-400M range.

GTC has approximately 108M fully-diluted shares outstanding for valuation purposes (#msg-15309465). However, if all of these shares come into play from warrant exercises, GTC’s cash balance will be boosted. Adding these warrant proceeds to the net cash on hand now comes to about $60M; hence, a $300-400M enterprise value translates into a $360-460M fully-diluted market cap. Dividing this by 108M shares gives a share price of $3.33-4.26.