CardioVascular BioTherapeutics (CVBT.OB) - positive shift from a surgical to a catheter delivery trial Update by Objective Capital , Jan 07, 2008(login for full report) Questions?
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Key Points:
Financial position is tight With around $250k left on the balance sheet at the end of Q307 and a monthly burn rate of between $700-800k the board and management of Cardio have stepped in with personal funding until a more attractive financing strategy can be devised. Management expects that to be completed by January 2008. Plans for an AIM listing have been put on hold.
Our prediction of a more conventional path for Cardio is taking shape A ‘quasi’ partnership with the Cordis division of Johnson and Johnson, and a shift of the ‘no option’ Coronary Artery disease (CAD) programme from surgical to catheter, takes Cardio down a straightforward path to market.
Trials under way shortly For various reasons, the two other lead programmes (wound closure and PAD) have been delayed. The former recently completed its Phase I trial and the latter’s Phase 1a should begin in January 2008.
Lumbar ischaemia programme to the fore Lower back problems are costly, widespread and potentially treatable using angiogenic therapy. Tests to study the potential link between lumbar arterial blockage, disk degradation and back pain are ongoing and could pave the way for FGF-1 trials.
Valuations down, but upside remains subject to funding Revenues will be delayed compared to the previous expectation following the elimination of the surgical programme and the delay of other programme revenues into 2011/12. Add an increase in the number of shares, lower than expected cash, and the result is a downward valuation adjustment of around twelve percent. Our core value is now $6.13 and assumes further funding can be successfully arranged in January 2008, as expected by the management.
