somewhat perplexed, page-12

"For the nine months ended March 31, 2014, cash and cash equivalents increased by $13.3 million, from $66.8 million to $80.1 million. This increase was primarily the result of cash received from financing activities during the period."

Our future funding requirements are difficult to determine and will depend on a number of factors, including:


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our plans surrounding the future clinical development of laninamivir octanoate;


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the variability of future royalty revenue we may receive from existing royalty-bearing license agreements;


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whether or not we continue to receive reimbursements and can negotiate an appropriate final termination settlements in the future, and the timing of those payments , under our recently-terminated contract with BARDA ;


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the development timelines and plans for our product candidates, including any changes to those timelines, plans or our strategy;


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the variability, timing and costs associated with conducting clinical trials for our product candidates, the rate of enrollment in such clinical trials, and the results of these clinical trials:


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the variability, timing and costs associated with conducting preclinical studies, and the results of those studies;


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the cost of scaling up, formulating and manufacturing preclinical and clinical trial materials to evaluate our product candidates;


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whether we receive regulatory approval to advance or begin the clinical development of our product candidates in a timely manner, or at all;


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the cost and time to obtain regulatory approvals required to advance the development of our product candidates;


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the scope and size of our research and development efforts;



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our pursuit, timing and the terms of any in-licensing, acquisition, co-development, and other similar collaborative clinical-stage development opportunities we may pursue in the future to better balance our pipeline;


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the size and cost of the general and administrative functions we may need to manage our operations, including the infrastructure to support being a publicly-traded company; and


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the cost of filing, prosecuting, and enforcing patent and other intellectual property claims.

Based on our current strategy and operating plan, and considering the potential costs associated with advancing the clinical development and preclinical development of our product candidates, we believe that our existing cash, cash equivalents of $80.1 million as of March 31, 2014, along with the anticipated proceeds from our existing royalty-bearing licenses, the collection of accounts receivables and a final termination settlement under the BARDA contract, to be collected over the next month twelve period and other existing license and collaboration agreements will enable us to operate for a period of at least 12 months from March 31, 2014. However, if we choose to advance laninamivir octanoate into Phase 3 clinical development in the future, we will likely need to enter into a license, co-development, or other collaboration agreement with a third party, or otherwise raise debt or equity capital to support the development costs, which could be substantial. We cannot assure you that we can enter into any such agreements or raise additional capital to support the future development of laninamivir octanoate on acceptable terms, if at all.