revenue or product revenue from the commercialization of these drugs; and
next 12 months is a forward-looking statement that is based on assumptions that may prove to be wrong
and that involve substantial risks and uncertainties. Our actual future capital requirements could vary as a
result of a number of factors, including:
· The progress and success of our preclinical and clinical development activities;
· The progress and success of the development efforts of our collaborators;
· Our ability to maintain current collaboration agreements;
· The costs involved in enforcing patent claims and other intellectual property rights; and/or
· The expenses associated with unforeseen litigation, regulatory changes, competition and
acquire or invest in other businesses, products and technologies.
needed, it may be necessary to significantly reduce the current rate of spending through further
reductions in staff and delaying, scaling back, or stopping certain research and development programs,
including more costly Phase 2 and Phase 3 clinical trials on our wholly owned programs as these
programs progress into later stage development. Insufficient liquidity may also require us to relinquish
greater rights to product candidates at an earlier stage of development or on less favorable terms to us
and our stockholders than we would otherwise choose in order to obtain up-front license fees needed to
fund operations. These events could prevent us from successfully executing our operating plan and in the
future could raise substantial doubt about our ability to continue as a going concern. Further, as
and payable if our total cash, cash equivalents and marketable securities falls below $20 million at the end
of a fiscal quarter. Based on our current forecasts and expectations, which are subject to many factors
outside of our control, we do not anticipate that our cash and cash equivalents and marketable securities
will fall below this level prior to maturity of such debt.
and have maturities of 90 days or less from the date of purchase.
of greater than 90 days when purchased. Long-term marketable securities as of June 30, 2010 consisted
primarily of our investments in ARS, all of which we have sold as of March 31, 2011. See
$33.5 million, compared to $66.0 million in fiscal 2011. In fiscal 2012, we received $36.5 million from
Genentech and Amgen for up-front and milestone payments under our collaboration agreements with
them which decreased our net loss compared to fiscal 2011.
2011, respectively. During fiscal 2012, our net cash proceeds from sales of marketable securities
decreased by $95.4 million compared to the prior year.
respectively. The difference between the periods is primarily attributable to $56.1 million in net proceeds
received from the sale of 23 million shares of our common stock in a public offering during February 2012
and $7.0 million received from the sale of 2.9 million shares of our common stock under our Equity
Distribution Agreement with Piper Jaffray & Co during the current fiscal year. This increase in net cash
provided by financing activities was reduced by the $4.2 million payment of principal under the Deerfield
million, compared to $17.6 million of cash provided by operating activities in fiscal 2010. In fiscal 2010, we
received $105 million from Amgen and Novartis in up-front and initial milestone payments under our
collaboration agreements with them which decreased our net loss compared to fiscal 2011.
2010, respectively. During fiscal 2011, we invested approximately $650 thousand more in property and
equipment than we did in the prior year. Additionally, our net cash proceeds from sales of marketable
securities increased by $144 million in fiscal 2011 compared to the prior year, including increased
proceeds related to sales of our ARS in the amount of $9.3 million.