Biotech Values

[DewDiligence]

MNTA Liquidity and Cash Usage

[Updated for today’s financing transaction. The estimated
pro forma cash balance as of 9/30/09 is about $108M.]


The table below shows the estimated cash burn and quarter-ending
cash balance for 3Q09, and the actual figures for the seven preceding
quarters. The cash-balance estimate for 3Q09 includes the $40.6M
raised today plus a $6.1M pro forma amount based on the assumption
that the underwriters’ 600K-share over-allotment option will be
exercised. The estimated 3Q09 burn is based on MNTA’s guidance
from the 2Q09 CC. (All figures in $M.)

  
       Ending  Cash    
        Cash   Burn   iHub reference  
 3Q09E 108.3E  10.5E  #msg-41777300 
 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  
    
 ‡A $2.5M reimbursement from NVS booked in June and received 
 in early July is offset against 2Q09 rather than 3Q09 burn.  
 †$24.1M raised in Dec 2008 financing.

Now that the EMINENCE phase-2 trial of M118 has been completed, MNTA’s
guidance is that the rate of operating cash burn will decrease. The company
says operating cash 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, the estimated 9/30/09 cash balance
of $108M covers operating expenses for more than two years.