Take a look at SNPX. $37.5mm in cash at year end (they closed on a $15mm preferred in Nov) with 7.35 million shares of common. Phase 2 came back in Jan with inconclusive findings ie. not statistically significant. Mgt announced this month the obligatory, "we are encouraged, blah, blah, blah, we are reviewing strategic options, blah, blah " Cash burn is a little under $3mm/qtr before the Phase 2 findings, so perhaps they can shrink that headcount on that failure. And the company is left with about $3 cash per share (assuming the preferred is repaid in full), and the stock is trading at $0.84 or about a >70% discount.
In the press release, I read "Cyteir is reducing headcount by approximately 70% and deferring research and development in other areas, which is expected to extend Cyteir’s cash runway into 2026".
This seems to suggest that WITH the reduction in costs the cash will run until 2026, so that would mean a much higher cash burn than the 20 MM you suggest, right? Should be at least double with the 147 MM they have in cash.
Take a look at SNPX. $37.5mm in cash at year end (they closed on a $15mm preferred in Nov) with 7.35 million shares of common. Phase 2 came back in Jan with inconclusive findings ie. not statistically significant. Mgt announced this month the obligatory, "we are encouraged, blah, blah, blah, we are reviewing strategic options, blah, blah " Cash burn is a little under $3mm/qtr before the Phase 2 findings, so perhaps they can shrink that headcount on that failure. And the company is left with about $3 cash per share (assuming the preferred is repaid in full), and the stock is trading at $0.84 or about a >70% discount.
Excellent piece. I appreciate your approach and cutting the info down to what's integral to the thesis.
In the press release, I read "Cyteir is reducing headcount by approximately 70% and deferring research and development in other areas, which is expected to extend Cyteir’s cash runway into 2026".
This seems to suggest that WITH the reduction in costs the cash will run until 2026, so that would mean a much higher cash burn than the 20 MM you suggest, right? Should be at least double with the 147 MM they have in cash.
What am I missing here?