BTA 0.00% 57.0¢ biota holdings limited

what is bta cash backing

  1. 830 Posts.
    I do not agree Lani is a dead duck. It should be more effective than Relenza as it is a single dose drug. BUT there is a long road ahead before commercialisation and the Biota board is a proven failure in the commercialising stage. The trials are not carried out in the major market of EU and US.

    The most important question is what is Biota Cash Burn rate? Will Biota come to market cap in hand for a capital raising in 08/09?

    Those spruiking 08/09 as a “Cash Neutral” year should read Biota accounts. I challenge them to post the following”

    What is the expected expenses for 08/09?
    What is the expected income for 08/09 and where do they come from?

    What we know is Biota $60.2M on 30 June was reduced to $55M at the end of September. We also know Biota received $20M from GSK in August for Peter Cook’s stellar settlement of the century. We also know BTA spend $4.95M on the share buyback in July and August. Therefore we can estimate Biota burned $20.5M cash in the 3 months to 30 September which averages $6.8 M per month. Thus at this cash burn rate by the end of this month the cash balance will be $55M minus $13.6M = $41.4M or 23.4 cents per share which is significantly less than the 34 cents promoted by the spruikers.

    On Friday closing price of 37.5cents, the market had already price in a hefty premium for Lani.

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