Replies to post #81101 on Biotech Values

[DewDiligence]

IDIX Liquidity and Cash Usage

[Updated for latest financing transaction.]


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   
 3Q09*  68.0*   n/a  #msg-40238356 
 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  
      
 *Estimated balance as of 8/10/09, 
 the closing date of latest financing. 
  
 ‡$34M was received from GSK in 
 the quarter for IDX899 license. 

During 2Q09, IDIX closed its drug-discovery office in Caligari, Italy and transferred the scientists there to corporate headquarters in Cambridge, Massachusetts; this will 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 $68M estimated cash balance as of 8/10/09 is sufficient to cover five quarters of operations even in the worst-case scenario where there is no up-front cash from new partnership deals.