Biotech Values

[DewDiligence]

>With only three quarters cash on hand, how do you expect IDIX to deal with that? It seems doubtful that they would want to enter 2009 with only two quarters of cash on hand.<

Your arithmetic is off. According to the CFO, Ron Renaud, the current balance represents five quarters of operating cash after taking into account expected Tyzeka royalties—i.e. enough to get through all of 2009. Moreover, IDIX plans to ink a partnership for IDX899 where the up-front deal money is apt to be substantial (#msg-28959639). Renaud confirmed on the CC that IDIX is in advanced discussions with multiple prospective partners.

>The slow ramp-up of Tyzeka sales must be a huge disappointment to IDIX and its shareholders.<

The slow sales ramp relative to such HBV drugs as Baraclude and Hepsera is very old news, and IDIX incurs no costs associated with the Tyzeka program.

>Did the CC reveal anything on these issues?<

Tyzeka isn’t perceived by the company as an issue. To the contrary, the CFO mentioned increasing Tyzeka royalties as one of the reasons why cash burn will be relatively low in 2009.