ExonHit's mid-year cash down at €11.5 million, stock liquidity improves

By Lisa Kerner

Charlotte, N.C., Sept. 20 - ExonHit Therapeutics SA said its consolidated cash balance was €11.5 million at June 30, compared with €13.6 million at the end of 2005.

During the first half of 2006, ExonHit's net use of cash due to operating activities increased to €3 million from €2.2 million for 2005, according to a company news release.

ExonHit attributed the increased cash burn primarily to the €1.8 million increase in accounts receivable between Dec. 31, 2005 and June 30 and to the receipt of only one quarterly research and development payment from strategic partner Allergan Inc. during the first half of 2006, compared with five payments in 2005.

For the first half 2006, research and development revenues covered 98% of research and development expenses, compared to the 64% ratio for first half 2005.

The Paris-based drug and diagnostic discovery company said it reached several of its major objectives in the first half of 2006, including the early renewal of its strategic collaboration with Allergan.

The company also improved stock liquidity during the first half of 2006, with continuous trading of the stock since March 6.

On June 15, the company made a secondary offering of 1 million existing shares, at €6.50 per share, to institutional investors and the public.

Also in June, ExonHit had free allocation of 23.65 million traded warrants exercisable until Jan. 19, which generating €18.4 million.

ExonHit believes a low burn rate coupled with increasing revenues will allow the company to accelerate development of products for the Life Sciences market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.