Replies to post #13431 on GTC Biotherapeutics (fka GTCB)

[10nisman]

<<GTC’s Expected Cash Usage for 2H08

--The cash balance at 6/30/08 was $12.2M.

--Guidance for cash usage in 2H08 is $14M (excluding any financing transactions or new partnership deals).

--3Q08 will benefit from the initial $3M payment from Ovation (provided that the deal actually closes).

--4Q08 will benefit from the next $2M payment from Ovation, assuming that the FDA accepts the ATryn BLA for review during the quarter.

--3Q08/4Q08 will benefit from a $3M reimbursement by LFB for the companies’ joint venture. (This is in addition to the $3M reimbursement from LFB during 2Q08.)>>>

Just to confirm....

The above Ovation and LFB payments ($8M total) are not included in the $14M calculation. Therefore, GTC has enough cash to make it through the end of the year ($12.2M + $8M = $20.2M vs. $14M) leaving $6.2M at the end of Q408 assuming the Ovation deal closes and the FDA accepts the ATryn BLA. Based on the current burn rate GTC should have approximately enough cash to make it through the next three quarters. Right?

10nis

[keitern]

I prefer a more humble and less presumptuous CEO. I resent Cox's attitude (my interpretation) that GTC will be successful but share price be damned. It is obvious to me that GTC is spending 22M this half yr. not to increase share price but to increase the probability that GTC will continue in some form. They had better sell this company or explain clearly where the next 22M is coming from. Why investors allow this kind of irresponsible spending is beyond me. This company has been underfunded (or overspent) from the start.