scarlet1967 wrote: ”As at August 31, 2020, cash, bonds and money market funds amounted to $26,847,000.”
”We ended the first quarter of fiscal 2021 with $56,716,000 in cash, bonds and money market funds.”
The offering grossed about $46,000,000 after fees the net proceeds were about $43,424.000 adding that to $26,847,000=70,27,.000( deducting the cash last quarter), 70,27,000-$56,716,000= $13,555,000
Their revenues Q1 were about $ 3 M below the average for 2020 which was a mix of profit warning and best revenues on record so really not much as a reference but that was their latest financial year results it was also a pandemic year.
Their roughly calculated cash burn rate was about $10M in Q1 about $5 M higher than the historical average due to constant fees, paying CROs etc. Another thing to consider is those consultant fees for NASH were one of payments or/and will be much less in the future.
Going forward the revenues most certainly will increase but yes they will have to start funding the NASH trial on a proforma basis.
So considering better revenues going forward they should have equal to at the minimum 7 or more quarters of cash to fund their operations. If the revenues increases by compounded 20%/25% then they will have more time before next financing, cancer phase1 trial if successful and completed during 2022 then the SP should jump significantly also there will be many companies knocking on the door to get a piece of the pie.
As per CRO doing a quick search on the net, they invoice on a proforma basis monthly, quarterly or biannually and they don’t require a guarantee for the full trial, they can’t as no one knows how the trial progresses, if and when the sponsor defaults on payment they can stop the trial if they choose to. The CROs also are aware of the process how R&D companies need to raise cash periodically to fund ongoing trials.
At this point I believe to worry about funds is a bit premature as if initially cancer is a success then there many scenarios where those needed funds in the future will be taking care of either partnership for either of their programs or an offering as much higher prices again I hope this conservative boards doesn’t panic and pull the trigger too early on the next offering in case they need to raise funds but regardless it won’t be until late 2022.
SPCEO1 wrote: For a trial that is going to last 3.5 years at a minimum, you do not need all the money for the entire trial up front. For example, GALT estimated their phase II/III trial would cost about $100 million and raised less than $50 million before launching it. That being said, we know another cappital raise is on the way despite the fact the company indicated the last one gave them a two year runway (I may not be remembering that precisely correctly, so feel free to correct me). It is also worth noting that cash can be raised via partnership agreements, either in NASH and/or in cancer.
Given the lack of internal NASH expertise, I would not mind THTX giving up some of the upside in NASH to a partner in exchange for external validation of their project and cash. A total internal THTX focus on a promising cancer drug platform might also be a benefit for THTX oif they could find a partner to handle the heavy lifting on the NASH trial. But, THTX may need more cancer data before they can make that call. And even if they want to focus more on cancer and let someone else push their NASH program forward, it may not be simple to find that partner at a reasonable price given the IP issues, the weird way in which THTX got NASH to phase III and the unending debacles in NASH trials.
But if cancer is looking very positive, the need to have to pursue NASH is reduced. If cancer somehow bombs out in the next couple of months, then they need NASH to have something investors could potentially get excited about.
qwerty22 wrote: This is a technical question more than anything. Don't you need the cash in the bank before you start a clinical trial?
I can't think of any circumstances where that hasn't happened. I can't think a CRO would start a trial without that sort of guarantee. Won't they need to do a cash raise before the trial?it seems like another reason to wait for shrinking tumour. A flurry of PRs going "shrinking tumour", "Nash Protocol", "financing", "patient enrolment".
SABBOBCAT wrote: It is king of fitting... We'd July 15, 2021 is a day that will never come... Just like the start of the NASH Phase III... I am joking of course, but come on, release the protocol already