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Dragon...I understand a big part of what is going on at the...

  1. 2,428 Posts.
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    Dragon...I understand a big part of what is going on at the moment is servicing existing contracts and kicking that goal.

    BUT....I don't share your sentiment about not being fazed about new deals. AS has said himself that he is expecting new deals with up front payments. Up front payments that will help the balance sheet.

    Device development is only partly funded by the programs and they will continue to burn cash until we get a signed supply agreement.

    Meanwhile, we have had months of no manufacturing capacity this year as the existing lines were down and being upgraded with better automation and general clean room hot rodding. So that doesn't bode well for expecting a nice spike in sales revenue for the last qtr

    So for me....we have borrowed money...have programs that cover some cash burn of the development programs but not all. We have some device deals, but none of which at the moment mean regular shipment in volume....so the only kicker I can expect is like AS has told us...up front payments from new deals.

    Remember before the Orbimed deal he was telling us that debt was one of this"levers" that he could pull if needed. But he emphasised that with the deals he knew were nearing completion, that cash wasn't an issue and was happy running the business with a lean balance sheet on the expectation that the deals would come....again "some" with sizable up front payments,

    So despite people hoping for product starting to ship to Hikma this month (ish) I am still being guided by the fact that Hikma are not launching any drugs until 2H2015 AT BEST. So if we ship anything before Q3 next year it will be drips and drabs. Hikma appear to be the first cab off the rank and it still 12 months away from being on a shelf anywhere in the world.

    So for me....its ALL about new deals and seeing the cash associated with them to help fund capital investment in the facility to build out that capacity
 
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