From my estimates TIS burn rate is about 1mil per quarter. I came to this figure simply by deducting inventory and advisor costs from TIS quarterly. I acknowledge that costs may be able to be decreased further however costs may also increase (due to launch costs and sales staff costs etc) so I have not made any further deductions.
From these very rough calculations I think TIS should have sufficient funds until ~April 2013.
I suspect TIS won't be cash flow positive by this stage but this point is irreelevant as companies do not wait until their bank balance is 0 before this issue is addressed. I am not as confident as supertramp that non-dilutive funding will be used.
Basically CE mark isn't the end of the story. With the UK reimbursement approvals are assessed then recommended by NICE, community health providers need to budget their spend on VG, then place an order during the next order cycle. Initial orders may be low initially until health professionals and end users become completely familiar with the product.
As terrific and beneficial as VG looks to be, I think it will take a little while for cash to start flowing in. If Quintiles is willing to provide a debt facility that would be fantastic, however if a CR is planned I just wish they'd bite the bullet and do it so what happened to ACL does not occur.
TIS Price at posting:
41.0¢ Sentiment: LT Buy Disclosure: Not Held
