Biotech Values

[DewDiligence]

IDIX Liquidity and Cash Usage

Cash burn and quarter-ending cash balance for the
past five quarters were as follows (all figures in $M):

 
       Ending  Cash 
        Cash   Burn  iHub reference 
 1Q09   64.5   15.6*  #msg-37449765 
 4Q08   46.1   14.4   #msg-35671327 
 3Q08   60.1   20.5   #msg-33234317 
 2Q08   80.6   18.4   #msg-31043547 
 1Q08   99.0   13.0   #msg-28886425 
 4Q07  112.0    n/a   #msg-27413201 
  
 *After adjusting for $34M received 
 from GSK during 1Q09.

Average cash burn during the past five quarters was $16.3M. If we make the simplifying assumption that the cash burn going forward will be the same as the cash burn during the past five quarters (which is consistent with IDIX’s own guidance), then the $64.5M cash balance at the end of 1Q09 represents nearly four quarters of cash burn.

It follows that IDIX is in no immediate need to raise cash, but an offering in the second half of 2009 seems likely if there has been no new partnership deal (e.g. NVS licensing of IDX184) by then.