Nastech Pharmaceutical's independent auditors expressed concern about the biotech company's ability to survive due to a possible cash crunch...
Nastech Pharmaceutical’s independent auditors expressed concern about the biotech company’s ability to survive due to a possible cash crunch, according to a regulatory filing Monday.
Accounting firm KPMG stated that recurring losses, negative cash flows and an accumulated deficit “raised substantial doubt” about the Bothell company’s ability “to continue as a going concern.”
The company, which disclosed the auditors’ comments as it announced its financial results, said it was in the midst of a major effort to reduce its cash burn and raise new money.
Moves include layoffs, the potential consolidation of its Bothell operations into a single facility, and a plan to sell up to $50 million in stock.
Most Read Business Stories
- 1 house, 45 offers: Homebuyers in Western Washington hard-pressed as supply remains scarce
- 55,000 in Washington state may have to pay back thousands in jobless benefits
- Boeing made an entire fake neighborhood to hide its bombers from potential WWII airstrikes
- Seattle artists worry potential sale of historic INS building could spell the end for their studios
- Washington state lawmakers advance eviction protections as end of moratorium approaches
At the end of 2007, Nastech had about $42 million in cash, cash equivalents and short-term investments.
The company reported about $52 million in losses for the year.
The auditors’ red flag underscores the troubles that began late last year when Procter & Gamble pulled out of a lucrative research partnership to develop a nasal osteoporosis treatment.
That rebuff cut off a major source of revenue for the company, sent the stock into a nose-dive and led to intensive belt-tightening.
Nastech stock, which last year soared to more than $17 a share, closed at $2.15 Monday, down 6.52 percent.
|Dollar figures in thousands, except per share; parentheses denote losses.|