MSB 2.08% 94.0¢ mesoblast limited

By MSB, page-127

  1. 16,915 Posts.
    lightbulb Created with Sketch. 8380
    "...nobody is talking about MSB having funding issues..."

    It's basic arithmetic that talks about MSB having funding issues.

    For posterity purposes, here's the rudimentary math:

    $170m cash balance @ 30 September 2014 and a cash burn rate of $30m every quarter.
    (Not my numbers, but the numbers reported by MSB itself)

    $170m divided by $40m = less than 6 quarters.

    So by this time next year (5 quarters forward from 30 September 2014), the company will be down to just one-quarter of cash outgoings.

    Unless MSB has a product proven, launched, distributed, invoiced and receipted by this time next year at a run-rate equal to the sum of:

    $120m pa

    PLUS manufacturing costs
    PLUS distribution costs
    PLUS royalties payable
    PLUS tax payable
    PLUS working capital

    (i.e, Sales Revenue significantly greater than $120m pa), then the company is commercially underfunded.

    Unless, of course, a partnering deal can be secured before then. And that, I presume, not even the Great Dolce, can predict with any degree of certainty.

    But in the absence of any magical funding partnership, unless you are going to re-write the laws of financial mathematics, the company's cash balance will be approaching zero.

    That's not a mere opinion.

    It's an arithmetic fact.

    Feel free to quantify why this is not so.
    Last edited by madamswer: 02/12/14
 
watchlist Created with Sketch. Add MSB (ASX) to my watchlist
(20min delay)
Last
94.0¢
Change
-0.020(2.08%)
Mkt cap ! $1.073B
Open High Low Value Volume
95.5¢ 97.0¢ 93.5¢ $1.424M 1.507M

Buyers (Bids)

No. Vol. Price($)
8 29390 93.5¢
 

Sellers (Offers)

Price($) Vol. No.
94.5¢ 14089 2
View Market Depth
Last trade - 16.10pm 13/09/2024 (20 minute delay) ?
MSB (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.