Replies to post #10393 on Biotech Values

[DewDiligence]

Re: GTCB cash position

From today’s PR:

--$27.8M cash and marketable securities at 3/31/05.
--$6.6M of operating cash burn in 1Q05.
--$20M of operating cash burn expected for 2005.

It follows from the above that the expected burn during Q2-Q4 is 20-6.6=$13.4M, approximately $4.5M per quarter. *If* this burn rate were maintained, the cash on hand would last more than six quarters (27.8/4.5=6.2 quarters).

[urche]

Is this suggestive of Tysabri?



From GTCB PR today:
The first quarter of 2005 revenues were primarily due to continuation of the activities with Merrimack Pharmaceuticals, funding of the malaria vaccine program by the National Institute of Allergy and Infections Diseases, and completion of the programs with Elan Pharmaceuticals.

To my knowledge, GTCB and Elan have disclosed a collaboration on an undisclosed protein. Considering the withdrawal of Tysabri from the market, and the disclosure above, I wonder if GTCB had been working on making Tysabri.

Urche