With the debt ratio as high as it is and a negative book value of 8 cents, it seems as thoguh this company is teetering on a shelf offering. I wonder when their debt is due?
RE: "who's to say there's actually a big market for a time released version "
If you were the doctor taking care of the patient, what would you prescribe? Something that could be missed or something that cannot be forgotten?
Think of the liability to the health providers. Any damage done that could have been prevented by making sure the patient is medicated sounds like grounds for a lawsuit. The market numbers in Europe speak for themselves.
In any event, approval in the US means a huge gap up for alks.
Given a cash burn rate of 30 million a quarter(conservative estimate), how long will this company last- even with 136 million dollars. Assuming Risperal is appoved in the U.S. ( a reasonable assumption), who's to say there's actually a big market for a time released version of this drug. What if the patients insurance does not provide coverage for the more exotic version of an existing drug?
I think they recently converted all their debt to common stock. But the interest expense was never the problem, as it only made up 4-5% of the total cash burn rate. The real problem is the R & D expense. As for financing, I would say that the equity and debt options are limited at best, given the current financial position of the company. Some of pipeline is promising though; maybe one of the bigger biotech companies will bail them out and put out a takeover bid.