Replies to post #90112 on Biotech Values

[mcbio]

Re: ARRY debt

What is their debt situation?

Please see #msg-44743617 and #msg-40290243 . Essentially, the bulk of the debt (about $120M) is with Deerfield and isn't due until 2014. ARRY can pay this back with either cash or stock at any time. They have indicated on several occasions before, including the most recent call, that their hope is to repay the debt back in shares that are hopefully much higher in 2014 to lessen the impact of dilution.

[DewDiligence]

Is ARRY's enterprise value given by the Market essentially zero?

No—net debt is added to the market cap to arrive at the enterprise value. Perhaps you were subtracting the net debt instead of adding it.