Biotech Values

[DewDiligence]

IDIX Liquidity and Cash Usage

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

 
       Ending  Cash  
        Cash   Burn  iHub reference  
 2Q09   51.7   12.8   #msg-39716693 
 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 
    
 *Excluding $34M received from GSK for IDX899 license.

IDIX has closed its drug-discovery office in Caligari, Italy and transferred the staff scientists to Cambridge, Massachusetts, which is expected to reduce cash burn by $3-4M per year. If we make the simplifying assumption that the cash burn going forward will be the same as the cash burn during 2Q09, then the $51.7M cash balance at the end of 2Q09 represents four quarters of cash burn, which is consistent with IDIX’s own guidance.

It follows that IDIX is in no immediate need to raise cash, but a financing transaction during 2009 seems likely if a new partnership deal with upfront cash has not been inked.