Monday, November 22, 1993
SMTG contemplates a respite
When Somatogen Inc. proposed its $40 million offering in August, BioCentury estimated the company would need an additional $170 million for operations and facilities through 1997 and product launch of its rHb1.1 recombinant blood substitute.
Since then, according to CFO Timothy Hoogheem, the company has cut its burn rate to about $3 million a month in the quarter ended Sept. 30 from $4.5-$5 million a month in the immediately preceding quarter, when 55-60 percent of the outlay was spent on facility construction. SMTG anticipates further reductions this quarter, and the company just made a 10 percent (24-person) reduction in headcount, bringing the number