GTC Biotherapeutics (fka GTCB)

[DewDiligence]

A high proportion of GTC’s costs are fixed; for instance, about 50% of the employee salaries go into maintaining the pharm. Although there is some opportunity for cost cutting, the opportunity is less than it would be at a typical biotech company.

For the above reason, I do not fault management unduly for the company’s high cost structure; rather, I fault management for its failure to bring in a meaningful amount of cash during the 2.5 years since ATryn’s approval in Europe.