Biotech Values

[DewDiligence]

MNTA Liquidity and Cash Usage

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

 
       Ending  Cash   
        Cash   Burn   iHub reference 
 2Q09   72.1   13.3‡  #msg-40259357 
 1Q09   87.9   20.6   #msg-37645888 
 4Q08  108.5   11.0*  #msg-35548032 
 3Q08   95.4   14.0   #msg-33301993 
 2Q08  109.4   14.2   #msg-30936204 
 1Q08  123.6   12.3   #msg-29095630 
 4Q07  135.9    n/a   #msg-26836951 
  
 ‡Adjusted for $2.5M payment from NVS 
 due in June and received in early July. 
 *Adjusted for $24.1M net proceeds 
 from Dec 2008 financing.

Now that the EMINENCE phase-2 trial of M118 has been completed, MNTA’s guidance is that the rate of cash burn will decrease. The company says burn for the second half of 2009 will be only $10.5M per quarter ($55M overall for all of 2009), excluding any new sources of cash such as the up-front fee in a partnership deal for M118.

At the reduced rate of cash burn, MNTA’s current cash balance of $72.1M covers operating expenses for more than six quarters. Thus, MNTA is on a sound financial footing even in the worst-case scenarios.