Key points from the release are below:
This revenue report is the last before the joint venture went into effect in October, so the next qtr. may be more telling for TransCyte.
The increased losses are for obvious reasons...primarily all the start up costs, manufacturing costs, new study costs, etc. This has nothing to do with earnings potential. This is simply biotech pre-product....nothing personal toward transcyte.
"We initiated a new multi-site clinical trial for Dermagraft for diabetic foot ulcers, successfully completed a reinspection of our manufacturing facilities by the U.S. Food and Drug Administration,....." Sounds like confirmation to those concerned that the study is already under way. This is key.
Key concerns regarding funds: current cash balances of 32.1 million, 15 million payment in 1/99, borrowing capacity of 4.7 million under the joint venture agreements, and a 50 million equity line. Loss for the qtr. of 11.9 million and for the 3 qtrs. of 34.9 million. 47.1 million is there without tapping borrowed or equity line, so a bit over a year at this run rate is still set before incurring obvious extra expenses of borrowing or other cash-raising methods. Another variable still includes whether another alliance pops up along the way, as extra cash could then come into play. Regardless, there is time easily for dermagraft to come out and start bringing in revenues, although the best way for it to truly be "easy" is with the best case scenario, more than likely, of good news coming out with interim analysis by late summer and dermagraft getting out early 2000. Also, the IDE should help offset some of the higher costs being incurred, possibly reducing the expenses ever so slightly.
Gradual progress appears to continue. Still like the low-key style while continuing to move fundamentally. |
