GTC Biotherapeutics (fka GTCB)

[DewDiligence]

The most notable revelation from the annual-meeting presentation is the guidance for reduced cash usage for the period from 4/1/08 to 12/31/08.

The new guidance is $10-12M of burn, which is reduced by $7M relative to the old guidance of $17-19M given on the 1Q08 CC (#msg-29133935). The $5M GTC expects to receive from Ovation during 2008 accounts for the bulk of the $7M reduction in burn guidance; the other $2M presumably stems from expected shipments of ATryn and MM-093 that will be higher than what was anticipated at the time of the 1Q08 CC.

2Q08 will be cash-flow neutral due to a bolus of ATryn shipments to Leo, mostly for use in the DIC trial.

3Q08 will benefit from the initial $3M payment from Ovation.

4Q08 will benefit from the next $2M payment from Ovation, assuming that the FDA accepts the ATryn BLA for review.

GTC’s existing cash balance of $11.7M is sufficient to fund operations through all of 3Q08, but it may be insufficient to fund operations through all of 4Q08. Hence, new sources of cash from partnering deals during the next few months will probably be needed to avert another financing transaction.



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