Replies to post #85840 on Biotech Values

[InTheTrenches]

$107.3M is sufficient to cover operating expenses
for more than two years.

Which begs the question, why do the recent financing?

1. Get the cash when the market is hot, coupled with uncertainty of when generic Lovenox will be approved and whether Momenta/NVS will have the sole generic
2. Don't expect to partner M118 soon.
3. Maximize M118 royalty by taking less upfront/milestones
4. Start & complete Phase 2b(?) before partnering to maximize deal, as offers are coming in low for M118
5. M&A
6. Other

#1 seems the most likely, but underlying this is the feeling that MNTA doesn't expect to partner M118 anytime soon. Your thoughts?

[DewDiligence]

MNTA Liquidity and Cash Usage

[Updated for 4Q09 results in #msg-46530217.]


Cash burn during 4Q09 was $11.6M, identical to the rate in 3Q09.
At this rate, the $95.7M cash balance at 12/31/09 is sufficient
to cover operating expenses for more than two years even
in the worst-case scenario.

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

 
       Ending  Cash      
        Cash   Burn  iHub reference   
 4Q09   95.7   11.6  #msg-46530217 
 3Q09  107.3*  11.6  #msg-43259757  
 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  
        
 *$46.8M raised in Sep 2009 financing.  
 ‡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.