Investor Relations (IR) Questions: QLT Inc $QLTI
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Answers received: March 2013
Below are answers to your questions about QLT. To give you some context on QLT’s situation at the moment, I’d like to give you some background on the changes that have taken place over the last year for the company: QLT underwent a corporate restructuring in July 2012, so the company is now run by an Executive Transition Committee, headed by Jason Aryeh, Chairman of the Board. Since that restructuring took place, the company eliminated 83% of its workforce and sold its Visudyne business to Valeant Pharmaceuticals for an upfront payment of $112.5M. In addition to those changes, the Board of Directors has authorized a return of $100.0 million in capital to shareholders as soon as practicable. In October 2012, QLT commenced a normal course issuer bid to repurchase up to 3,438,683 of its common shares. Currently, the Board is evaluating a number of other options to most efficiently and effectively implement the return of capital.
1) When is the last time QLTI raised cash through an offering (diluted)?
The last offering occurred in 2003. Since then, the company has acquired cash through product sales, tax refunds and asset purchase agreements.
2) How much cash (not cash equivalents) does QLTI have?
The Company’s consolidated cash balance at December 31, 2012 consisted of $307.4 million of cash and cash equivalents and $7.5 million of restricted cash.
3) What and approximately when is the next known catalyst?
News about the development path for QLT091001 is the next catalyst. QLT expects its recently augmented synthetic retinoid program leadership team to meet with the FDA by the end of Q1 2013 to discuss the most prudent development path to advance QLT091001. Until the aforementioned U.S. Food and Drug Administration (FDA) meeting is concluded, the minutes from it are reviewed, and a subsequent end of phase II meeting is completed with formal guidance provided by the FDA, we do not expect to provide timelines for potential pivotal trial initiation(s).
4) What is QLTI's quarterly cash burn?
The company has not publicly stated their “cash burn” but I can give you the cash balance for the last 4 quarters:
December 31, 2012: $307.4M
September 30, 2012: $308.2M
June 30, 2012: $203.3M
March 31, 2012: $207.2M
5) Does QLTI have an existing line of credit and if so how much can they draw against it?
The company has not made any disclosures about an existing line of credit.
Below are answers to your questions about QLT. To give you some context on QLT’s situation at the moment, I’d like to give you some background on the changes that have taken place over the last year for the company: QLT underwent a corporate restructuring in July 2012, so the company is now run by an Executive Transition Committee, headed by Jason Aryeh, Chairman of the Board. Since that restructuring took place, the company eliminated 83% of its workforce and sold its Visudyne business to Valeant Pharmaceuticals for an upfront payment of $112.5M. In addition to those changes, the Board of Directors has authorized a return of $100.0 million in capital to shareholders as soon as practicable. In October 2012, QLT commenced a normal course issuer bid to repurchase up to 3,438,683 of its common shares. Currently, the Board is evaluating a number of other options to most efficiently and effectively implement the return of capital.
1) When is the last time QLTI raised cash through an offering (diluted)?
The last offering occurred in 2003. Since then, the company has acquired cash through product sales, tax refunds and asset purchase agreements.
2) How much cash (not cash equivalents) does QLTI have?
The Company’s consolidated cash balance at December 31, 2012 consisted of $307.4 million of cash and cash equivalents and $7.5 million of restricted cash.
3) What and approximately when is the next known catalyst?
News about the development path for QLT091001 is the next catalyst. QLT expects its recently augmented synthetic retinoid program leadership team to meet with the FDA by the end of Q1 2013 to discuss the most prudent development path to advance QLT091001. Until the aforementioned U.S. Food and Drug Administration (FDA) meeting is concluded, the minutes from it are reviewed, and a subsequent end of phase II meeting is completed with formal guidance provided by the FDA, we do not expect to provide timelines for potential pivotal trial initiation(s).
4) What is QLTI's quarterly cash burn?
The company has not publicly stated their “cash burn” but I can give you the cash balance for the last 4 quarters:
December 31, 2012: $307.4M
September 30, 2012: $308.2M
June 30, 2012: $203.3M
March 31, 2012: $207.2M
5) Does QLTI have an existing line of credit and if so how much can they draw against it?
The company has not made any disclosures about an existing line of credit.