Theseus Prescription drugs (THRX) (~$140MM market cap), a most cancers remedy researcher, is the most recent addition to the damaged biotech basket commerce. This week, Theseus introduced a 72% discount in workforce and the exploration of strategic alternate options “to think about a variety of choices with a deal with maximizing shareholder worth, together with potential sale of belongings of the Firm, a sale of the Firm, a merger or different strategic motion.” The corporate hasn’t reported for Q3 as of this writing, however did disclose an estimated money and securities stability of $225.4MM in the identical press launch.
The 6/30 money and securities stability was $234.2MM, so the corporate solely burned a bit beneath $9MM through the quarter regardless of trying to push ahead just a few early stage applications (which can have some worth?) after shutting down their Section 1/2 trial for his or her lead candidate in mid-July, pointing to some expense self-discipline right here. In any other case the stability sheet is pretty straight ahead, there is a small lease obligation (already backed out in my NCAV quantity) and no debt. Regardless of leaping 50% on the strategic alternate options information, I nonetheless assume this one is attractively priced.
Disclosure: I personal shares of THRX
