>Shouldn't the burn rate decline with the completion of the trial -- or did you already take that out?<
I didn't know what to do for several reasons...
The last quarterly conference call [http://finance.yahoo.com/news/arqule-reports-second-quarter-2012-110000732.html had a cash bottom line of $75M and a long term marketable securities line of $71M. What are the securities and given this is biotech, how secure are they? The CEO estimated they would finish the ear at about $125M, but reading between the lines, he is looking for another $25M in revenue before the end of they year. If that is based on successful Ph III, they will be closer to $100M at end of 2012.
They burn about $9.5M for R&D per quarter and about $3.5M for G&A. This seems a little high for only 100 employees but they probably have contract employees as well.
When the trial was halted for ILD, the news release had some interesting notes from an analyst.
minyanville.com
>In a note earlier this month, Leerink Swann analyst Howard Liang said that ArQule had enough cash to complete at least five mid- to late-stage studies of tivantinib in three tumor types through early 2014.<
So two questions:
1. How much can they cut and still complete the early phase trials?
2. Will the additional funding of $25M happen in the next 24 months?
Sorry to take so long in answering your question, but i didn't reduce head count or expenses because of the ongoing trials. Maybe they could cut by 30% and still have a viable R&D program. If they don't get more money,, they would have about 3 years left in cash and securities.
So, Ii think it looks tight,but not undoable, if they skinny down now and get great results in about 24 months.
Best,
graham
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