Replies to post #90468 on Biotech Values

[DewDiligence]

MNTA Liquidity and Cash Usage

[Updated for 1Q10 results.]


Cash burn during 1Q10 was $14.0M, up $2.4M from the prior
two quarters. Rather than indicating an increase in spending,
the increase in quarterly cash burn stemmed from an increase
in working capital (i.e. reduced accounts payable), as explained
by ‘stockbettor’ in #msg-49926243; if not for the change in
working capital, 1Q10 cash burn would have been essentially
unchanged from the burn rate in the prior two quarters.

If we assume that future cash burn in the worst-case scenario
will continue at $11.6M per quarter, the 3/31/10 cash balance
of $81.7M is sufficient to cover operating expenses for
seven quarters.

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

 
       Ending  Cash      
        Cash   Burn  iHub reference   
 1Q10   81.7   14.0* #msg-49840238 
 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  
        
  
 *See discussion in #msg-49926243. 
  
 ‡$46.8M raised in Sep 2009 financing.  
     
 †$24.1M raised in Dec 2008 financing.