The San Diego Biotech Survival Index: Local Firms Make Strong Rebound In First Half of 2009
Luke Timmerman9/23/09Follow @ldtimmerman
When Xconomy published its first analysis of the financial health of San Diego’s publicly traded biotech companies last November, half of the nation’s 248 unprofitable biotechs were running on fumes, with less than a year’s worth of cash in the bank. A lot of predictable, painful cuts have followed. Yet a majority of San Diego’s companies have still found ways to adjust, and most have maneuvered into stronger financial positions over the past six months.
That’s the surprising finding revealed by crunching publicly available data on cash balances, burn rates, and financial projections for 27 publicly traded life sciences companies that Xconomy watches in San Diego. Fifteen of those companies appeared to be financially stronger at the end of June than they were when they began the year, while 12 were in a weaker position, based on an analysis of the most recent quarterly reports filed with the Securities and Exchange Commission.
Of course, many of these companies improved their financial health did it by taking drastic actions that aren’t good for the life sciences community as a whole, such as cutting drug development programs, shedding employees, and terminating office leases. Just four of the 27 companies I analyzed are operating solidly in the black, and only eight of the 27 had more than $100 million in cash and investments in the bank at the end of June, giving them a sizable cushion to ride out the recession.
What follows is a rundown of the cash balances of all 27 companies, listed in alphabetical order. To purchase a much expanded version of this report, in PDF format, click the “Add to Cart” button below. The expanded version, available for $95,* includes an assessment of each company’s financial position at the end of June compared to six months earlier, the projected length of time it can survive on its existing cash reserves, and an analysis of the strategic moves it has made to stay afloat in the current environment. Click here to see a sample entry. *Price is subject to change without notice.
We intend to keep doing this analysis regularly to monitor the financial health of life sciences companies we follow in San Diego, Seattle, and Boston. All the cash figures listed below are current as of June 30. If you spot anything we should add or correct, let us know at editors@xconomy.com.
Acadia Pharmaceuticals (NASDAQ: ACAD)
Cash on hand: $66.2 million
Previous Xconomy coverage:
“Acadia Pharma Shares Crash After Lead Parkinson’s Drug Fails in Trial”
Amylin Pharmaceuticals (NASDAQ: AMLN)
Cash on hand: $644.4 million
Previous Xconomy coverage:
“Amylin, Dark Horse of the Obesity Drug Battle, Follows Fast Behind Arena, Orexigen”
“In Aftermath of Proxy Fight, Amylin Pharmaceuticals Investor Expresses Concern Over Empty Board Seat”
“Amylin’s Would-Be-Savior, Once-Weekly Diabetes Shot, Shows Two Year Benefit”
Anadys Pharmaceuticals (NASDAQ: ANDS)
Cash on hand: $30.6 million
Previous Xconomy coverage:
“Anadys, Biotech’s Roller Coaster Story, Gears Up For Next Big Step With Hepatitis C Drug”
“Investors Dump Anadys Shares on Report of Itchy Side Effect
“Anadys Shares Boom on Hepatitis C Finding”
Ardea Biosciences (NASDAQ: RDEA)
Cash on hand: $70.1 million
Previous Xconomy coverage:
“Ardea, Developer of Gout Drug, Sees Early Signs of Effectiveness”
“Ardea Biosciences, In Moment of Serendipity, Discovers HIV Drug That May Work for Gout”
Arena Pharmaceuticals (NASDAQ: ARNA)
Cash on hand: $39.6 million
Previous Xconomy coverage:
“Arena Eagerly Awaits Answer to $1 Billion Question: Does It Have a Big-Time Obesity Drug?”
“Arena Obesity Drug Helps Patients Shed a Few Pounds, Lower Risk of Heart Disease”
“Arena Drug Passes Second Trial, Aims to Sell Safe Option for Millions of People”
Cadence Pharmaceuticals (NASDAQ: CADX)
Cash on hand: $105.4 million
Previous Xconomy coverage:
“Cadence Turns Attention to Marketplace as IV Pain Reliever Reaches Goals in Clinical Trials”
“Cadence, Aiming to Reduce Narcotics Use in Hospitals, Gears Up to Market IV Pain Reliever”
Cypress Bioscience (NASDAQ: CYPB)
Cash on hand: $151.3 million
Previous Xconomy coverage:
“Cypress Bioscience, Developer of Fibromyalgia Drug, Eagerly Awaits FDA Deadline“
“Cypress Bioscience Shares Soar on News of FDA Approval”
Cytori Therapeutics (NASDAQ: CYTX)
Cash on hand: $13.9 million
Previous Xconomy coverage:
“San Diego’s Cytori Gains Cash, Loses a Patent“
“Cytori Expands GE Partnership, Raises More Cash“
“Cytori Raises $10 Million”
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Gen-Probe (NASDAQ: GPRO)
Cash on hand: $464.2 million
Previous Xconomy coverage:
“Gen-Probe Spins Off New Company, Roka Bioscience, for Industrial Testing“
“Gen-Probe Amends Deal to Get Promising Test for Prostate Cancer”
Genoptix Medical (NASDAQ: GXDX)
Cash on hand: $126.7 million
Previous Xconomy coverage:
“Riding a Cancer Diagnostics Wave, Genoptix Sees Boom Continuing in 2009”
Halozyme Therapeutics (NASDAQ: HALO)
Cash on hand: $89.2 million
Previous Xconomy coverage:
“Halozyme Set for Secondary Offering”
Hollis-Eden Pharmaceuticals (NASDAQ: HEPH)
Cash on hand: $15.2 million
Previous Xconomy coverage:
“San Diego Biotech Hollis-Eden Terminates CEO”
Illumina (NASDAQ: ILMN)
Cash on hand: $790 million
Previous Xconomy coverage:
“Illumina Sales Miss Expectations“
“Illumina Shows Its Stuff to Wall Street, Stock Still Slides”
Inovio Biomedical (AMEX: INO)
Cash on hand: $8.3 million
Previous Xconomy coverage:
“Inovio, Fuelled by Swine Flu Fear, Reinvents Itself as Developer of Universal Flu Vaccines”
Isis Pharmaceuticals (NASDAQ: ISIS)
Cash on hand: $637.5 million
Previous Xconomy coverage:
“Isis, Genzyme Use Antisense to Go Where Many Drugs Fail, the Brain“
“Genzyme, Isis Cholesterol Drug Reaches Goal in Pivotal Study, Paving the Way to FDA“
“Isis Pharmaceuticals Second Drug Aims to Block Marker of Heart Disease, Inflammation“
“Alnylam, Isis Offspring, Regulus, Keeps Pushing on Biology’s Bleeding Edge”
Life Technologies (NASDAQ: LIFE)
Cash on hand: $582 million
Previous Xconomy coverage:
“From Merger of Invitrogen and Applied Biosystems, Life Technologies Plans to Grow From San Diego Base”
Ligand Pharmaceuticals (NASDAQ: LGND)
Cash on hand: $55.5 million
Previous Xconomy coverage:
“Ligand Gets Neurogen for $11 Million“
“Ligand Cuts Another Deal With GlaxoSmithKline”
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Metabasis Therapeutics (NASDAQ: MBRX)
Cash on hand: $6.6 million
Previous Xconomy coverage:
“Ailing Metabasis Hires Advisory Firm“
“Metabasis Therapeutics Restructures, Cuts 38 From Staff“
“Latest Metabasis Cutbacks Leave Just Seven Employees”
Neurocrine Biosciences (NASDAQ: NBIX)
Cash on hand: $74 million
Previous Xconomy coverage:
“$75M Financing for Neurocrine
“Neurocrine Cuts Half of Workforce”
Optimer Pharmaceuticals (NASDAQ: OPTR)
Cash on hand: $51.2 million
Previous Xconomy coverage:
“Optimer Rides Investment See-Saw With Promising Drug for C.Diff Infections”
Optimer Sharpens Up Commercial Game Plan After C.Diff Drug Success”
Optimer’s Second Drug for Traveler’s Diarrhea Follows Fast Behind Lead C.Diff Antibiotic”
“Optimer Shares Skyrocket As Drug Halts Deadly Bacterial Infection in Trial”
Orexigen Therapeutics (NASDAQ: OREX)
Cash on hand: $46 million
Previous Xconomy coverage:
“Orexigen Aims to Redefine Obesity as Amgen Vet Revamps Company to Compete”
“Orexigen Drug Hits Weight Loss Goal in Studies, Company Looks Toward FDA“
“Orexigen Obesity Drug Produces Modest Weight Loss, Lowers Cardiovascular Risk”
Quidel (NASDAQ: QDEL)
Cash on hand: $49.4 million
Previous Xconomy coverage:
“Quidel, Pulling Off a Turnaround, Predicts Record Profit on Demand for Flu Tests”
Santarus (NASDAQ: SNTS)
Cash on hand: $57.5 million
Previous Xconomy coverage:
“Santarus Takes on Marketing Goliaths With Faster Acting Heartburn Drug“
“Santarus Nabs U.S. Rights for Two Drugs in Cosmo Collaboration”
Sequenom (NASDAQ: SQNM)
Cash on Hand: $69.3 million
Previous Xconomy coverage:
“Sequenom Maintains Tight Lid on Mishandled Data of Key Diagnostic Test“
“Sequenom, Fueled by Blood Test for Down’s, Aims To Be the Google of Molecular Diagnostics“
“Sequenom Blood Test Clears Higher Hurdle, Company Plots Aggressive Moves Toward Market”
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Somaxon Pharmaceuticals (NASDAQ: SOMX)
Cash on hand: $1.3 million
Previous Xconomy coverage:
“Somaxon Renews Its Insomnia Drug Application, Raises $6m“
“FDA Rejects Somaxon’s Application for Insomnia Drug”
Torrey Pines Therapeutics (NASDAQ: TPTX)
Cash on hand: $1.2 million
Previous Xconomy coverage:
“Wanted at Torrey Pines Therapeutics: Shareholders Who Vote”
Vical (NASDAQ: VICL)
Cash on hand: $49 million
Previous Xconomy coverage:
“Vical on Fast Pace With Animal Tests of Prototype Swine Flu Vaccine“
“After Years of Red Ink, Vical Says DNA-Based Vaccines Ready for Prime Time“
