Biotech Values

[mcbio]

Re: ARRY debt

Horrible balance sheet and $60m barely makes a dent in their outstanding liabilities/debt.

Oh really? In what scenario is receiving cash equivalent to about 40% of your outstanding liabilities/debt (total liabilities are about $150 million excluding deferred revenue) not considered a "dent"?

Raising cash wouldnt suprise me going forward to pay down debt - many companies will be issuing equity to pay down debt as many have stared into the abyss of potential ch 11 and I think that like households you are goign to see a continuation of the delveraging - especially in small garbage comapnies that have feast or famine relationships with investors and credit markets.

Inasmuch as ARRY management delivered on the big deal for ARRY-403 (and correctly called the flurry of biotech deals we've seen so far in December), I tend to believe them when they say they have another deal coming in the near-term (ARRY-162 most likely), and expect to receive an additional $80 million or so in 2010 in partnership funding. All told, they are in a good position to avoid dilution, or at least significant dilution, in the near future.