Investor Relations (IR) Questions: Maxygen MAXY
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Answers received: May 2013
1) When is the last time MAXY raised cash through an offering (diluted)? Maxygen last raised equity capital in early 2000 at $97 per share, for total proceeds of $137 million. This does not include subsequent financing proceeds from the exercise of stock options or other equity instruments.
2) How much cash (not cash equivalents) does MAXY have? As of March 31, 2013, Maxygen held $81.1M in cash and short term investments. The short term investments totaled approximately $20M and consist of U.S. treasury securities with maturities of less than one year.
3) What and approximately when is the next known catalyst? We continue to retain all rights to our MAXY-G34 product candidate, a next-generation pegylated, granulocyte colony stimulating factor, or G-CSF, for the treatment of chemotherapy-induced neutropenia and acute radiation syndrome, or ARS, and we continue to focus on creating value from this program for our stockholders, principally through a sale or other transaction involving the program. We have no current plans to independently continue the further development of this product candidate for either indication and, to date, we have not been successful in identifying any potential transaction for the MAXY-G34 program. Accordingly, there can be no assurances we will be successful in identifying and consummating any such transaction in the future or be able to realize any value from this program.
We also continue to evaluate potential strategic options for our company as a whole, including a merger, reverse merger, sale or other strategic transaction. We also expect to evaluate and consider additional distributions to our stockholders of a portion of our cash resources in excess of our limited future operational requirements, amounts we consider appropriate to pursue our ongoing strategic evaluation and adequate reserves for potential future liabilities. Such distributions may be accomplished through cash dividends, stock repurchases or other mechanisms and may be fully or partially taxable depending on the circumstances of such distribution. We may also decide to cease all of our operations and seek stockholder approval of a plan of liquidation and dissolution so that we may liquidate all of our remaining assets, pay our known liabilities, distribute our remaining cash on hand (subject to the set aside of adequate reserves to cover known, unknown and contingent liabilities, including potential tax liabilities and potential claims in litigation) and dissolve. However, there can be no assurances that any particular course of action, business arrangement or transaction, or series of transactions, will be pursued, successfully consummated or lead to increased stockholder value or that we will make any additional cash distributions to our stockholders.
4) What is MAXY's quarterly cash burn? Maxygen used approximately $1.5M of cash in operating activities during the first quarter of 2013, as reported in our first quarter 10-Q filing. It should be noted that we do not give specific financial guidance and our recent spending levels are not necessarily indicative of future financial results.
5) Does MAXY have an existing line of credit and if so how much can they draw against it? Maxygen does not have an existing line of credit or any other debt facilities.
1) When is the last time MAXY raised cash through an offering (diluted)? Maxygen last raised equity capital in early 2000 at $97 per share, for total proceeds of $137 million. This does not include subsequent financing proceeds from the exercise of stock options or other equity instruments.
2) How much cash (not cash equivalents) does MAXY have? As of March 31, 2013, Maxygen held $81.1M in cash and short term investments. The short term investments totaled approximately $20M and consist of U.S. treasury securities with maturities of less than one year.
3) What and approximately when is the next known catalyst? We continue to retain all rights to our MAXY-G34 product candidate, a next-generation pegylated, granulocyte colony stimulating factor, or G-CSF, for the treatment of chemotherapy-induced neutropenia and acute radiation syndrome, or ARS, and we continue to focus on creating value from this program for our stockholders, principally through a sale or other transaction involving the program. We have no current plans to independently continue the further development of this product candidate for either indication and, to date, we have not been successful in identifying any potential transaction for the MAXY-G34 program. Accordingly, there can be no assurances we will be successful in identifying and consummating any such transaction in the future or be able to realize any value from this program.
We also continue to evaluate potential strategic options for our company as a whole, including a merger, reverse merger, sale or other strategic transaction. We also expect to evaluate and consider additional distributions to our stockholders of a portion of our cash resources in excess of our limited future operational requirements, amounts we consider appropriate to pursue our ongoing strategic evaluation and adequate reserves for potential future liabilities. Such distributions may be accomplished through cash dividends, stock repurchases or other mechanisms and may be fully or partially taxable depending on the circumstances of such distribution. We may also decide to cease all of our operations and seek stockholder approval of a plan of liquidation and dissolution so that we may liquidate all of our remaining assets, pay our known liabilities, distribute our remaining cash on hand (subject to the set aside of adequate reserves to cover known, unknown and contingent liabilities, including potential tax liabilities and potential claims in litigation) and dissolve. However, there can be no assurances that any particular course of action, business arrangement or transaction, or series of transactions, will be pursued, successfully consummated or lead to increased stockholder value or that we will make any additional cash distributions to our stockholders.
4) What is MAXY's quarterly cash burn? Maxygen used approximately $1.5M of cash in operating activities during the first quarter of 2013, as reported in our first quarter 10-Q filing. It should be noted that we do not give specific financial guidance and our recent spending levels are not necessarily indicative of future financial results.
5) Does MAXY have an existing line of credit and if so how much can they draw against it? Maxygen does not have an existing line of credit or any other debt facilities.