BioMimetic Therapeutics Inc. (BMTI, Financial) filed Quarterly Report for the period ended 2009-03-31.
BioMimetic Therapeutics Inc. has a market cap of $151.1 million; its shares were traded at around $8.07 with a P/E ratio of 29.9 and P/S ratio of 48.
Generally, the ARS investments that we hold are bonds sold by state guarantee agencies backed by student loans under the Federal Family Education Loan Program (“FFELP”), and have credit ratings of “AAA,” “A,” and “BBB.” The student loans are guaranteed by the U.S. Department of Education at amounts representing a substantial portion of the loans. As of March 31, 2009, the total fair value of our short-term and long-term investments in ARS classified as available for sale was $48.1 million. There is currently no viable market for these ARS investments as auctions for ARS have failed since February 2008, and as of March 31, 2009, we had been unable to liquidate the $60.0 million par value in ARS investments that we held. In April 2009, however, we sold two of the ARS investments and two of the ARS investments were redeemed by the issuer for total proceeds of $10.9 million. The total par value of these ARS investments was $11.9 million. We cannot be sure when liquidity will return to the ARS market. Therefore, we intend to hold the remaining ARS investments in our portfolio for at least the next twelve months, and accordingly, they have been classified as long-term on our condensed consolidated balance sheet at March 31, 2009.
In addition to the balance of cash and cash equivalents at March 31, 2009, we had $42.5 million in short-term investments that are classified as available for sale consisting of GSE securities totaling $30.1 million, a U.S. Treasury Note for $1.5 million, and $10.9 million of certain ARS investments redeemed or sold in April 2009. The GSE securities have maturity dates from April 2009 through December 2009. The U.S. Treasury Note has a maturity date of April 30, 2009.
Also at March 31, 2009, we had long-term investments of $37.2 million in student loan backed ARS investments that are classified as available-for-sale and recorded at fair value. As of March 31, 2009, the total fair value of our short-term and long-term ARS investments was $48.1 million, consisting of $37.6 million in bonds with a credit rating of “AAA,” $7.4 million in bonds with a credit rating of “A” and $3.1 million in bonds with a credit rating of “BBB.” Generally, the ARS investments are bonds sold by state guarantee agencies backed by student loans under the FFELP. The majority of the student loans are guaranteed by the U.S. Department of Education at amounts representing a substantial portion of the loans.
Fair value measures of our ARS investments have been estimated using cash flow discounting with a Monte Carlo simulation and other information. The valuation model reflects various assumptions that market participants would use in pricing, including among others, the collateralization underlying the investments, the creditworthiness of the counterparty, the expected future cash flows, and the risks associated with uncertainties in the current market. In 2008, we had determined that our ARS investments had experienced an other-than-temporary impairment in fair value and we had estimated the fair value to be $46.6 million, representing an impairment loss of $13.4 million, as of December 31, 2008. Based on a cash flow discounting model and other information, we have estimated the fair value to be $48.1 million as of March 31, 2009, representing an unrealized gain on investments of $1.5 million recorded in accumulated other comprehensive income on our condensed consolidated balance sheet for the three months ended March 31, 2009.
In April 2009, we sold 941,177 shares of our common stock to InterWest Partners X, LP, an affiliate of InterWest Partners, one of our existing stockholders and an affiliate of our company, for an aggregate purchase price of approximately $8.0 million, or $8.50 per share. In addition, our board of directors approved a rights offering of up to $17.0 million to be made, on a pro rata basis, to our existing stockholders of record as of April 21, 2009 (the “record date”). In conjunction with the rights offering, we entered into a standby purchase agreement with Novo A/S, one of our stockholders. In the standby purchase agreement, Novo A/S agreed to backstop the rights offering by purchasing up to $15.0 million, at $8.50 per sh
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BioMimetic Therapeutics Inc. has a market cap of $151.1 million; its shares were traded at around $8.07 with a P/E ratio of 29.9 and P/S ratio of 48.
Highlight of Business Operations:
The remaining proceeds of these activities are reflected in the balance of cash and investments, which total $88.8 million as of March 31, 2009. Our investments portfolio includes $42.5 million in short-term investments consisting of U.S. government sponsored enterprise (“GSE”) securities totaling $30.1 million, a U.S. Treasury Note of $1.5 million, and certain student loan backed ARS investments totaling $10.9 million. Our investments portfolio also includes $37.2 million in long-term investments consisting of ARS investments.Generally, the ARS investments that we hold are bonds sold by state guarantee agencies backed by student loans under the Federal Family Education Loan Program (“FFELP”), and have credit ratings of “AAA,” “A,” and “BBB.” The student loans are guaranteed by the U.S. Department of Education at amounts representing a substantial portion of the loans. As of March 31, 2009, the total fair value of our short-term and long-term investments in ARS classified as available for sale was $48.1 million. There is currently no viable market for these ARS investments as auctions for ARS have failed since February 2008, and as of March 31, 2009, we had been unable to liquidate the $60.0 million par value in ARS investments that we held. In April 2009, however, we sold two of the ARS investments and two of the ARS investments were redeemed by the issuer for total proceeds of $10.9 million. The total par value of these ARS investments was $11.9 million. We cannot be sure when liquidity will return to the ARS market. Therefore, we intend to hold the remaining ARS investments in our portfolio for at least the next twelve months, and accordingly, they have been classified as long-term on our condensed consolidated balance sheet at March 31, 2009.
In addition to the balance of cash and cash equivalents at March 31, 2009, we had $42.5 million in short-term investments that are classified as available for sale consisting of GSE securities totaling $30.1 million, a U.S. Treasury Note for $1.5 million, and $10.9 million of certain ARS investments redeemed or sold in April 2009. The GSE securities have maturity dates from April 2009 through December 2009. The U.S. Treasury Note has a maturity date of April 30, 2009.
Also at March 31, 2009, we had long-term investments of $37.2 million in student loan backed ARS investments that are classified as available-for-sale and recorded at fair value. As of March 31, 2009, the total fair value of our short-term and long-term ARS investments was $48.1 million, consisting of $37.6 million in bonds with a credit rating of “AAA,” $7.4 million in bonds with a credit rating of “A” and $3.1 million in bonds with a credit rating of “BBB.” Generally, the ARS investments are bonds sold by state guarantee agencies backed by student loans under the FFELP. The majority of the student loans are guaranteed by the U.S. Department of Education at amounts representing a substantial portion of the loans.
Fair value measures of our ARS investments have been estimated using cash flow discounting with a Monte Carlo simulation and other information. The valuation model reflects various assumptions that market participants would use in pricing, including among others, the collateralization underlying the investments, the creditworthiness of the counterparty, the expected future cash flows, and the risks associated with uncertainties in the current market. In 2008, we had determined that our ARS investments had experienced an other-than-temporary impairment in fair value and we had estimated the fair value to be $46.6 million, representing an impairment loss of $13.4 million, as of December 31, 2008. Based on a cash flow discounting model and other information, we have estimated the fair value to be $48.1 million as of March 31, 2009, representing an unrealized gain on investments of $1.5 million recorded in accumulated other comprehensive income on our condensed consolidated balance sheet for the three months ended March 31, 2009.
In April 2009, we sold 941,177 shares of our common stock to InterWest Partners X, LP, an affiliate of InterWest Partners, one of our existing stockholders and an affiliate of our company, for an aggregate purchase price of approximately $8.0 million, or $8.50 per share. In addition, our board of directors approved a rights offering of up to $17.0 million to be made, on a pro rata basis, to our existing stockholders of record as of April 21, 2009 (the “record date”). In conjunction with the rights offering, we entered into a standby purchase agreement with Novo A/S, one of our stockholders. In the standby purchase agreement, Novo A/S agreed to backstop the rights offering by purchasing up to $15.0 million, at $8.50 per sh
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