Question
Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment of various diseases, including Parkinsons disease. Amicus Therapeutics reported the following financial
Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment of various diseases, including Parkinsons disease. Amicus Therapeutics reported the following financial data (in thousands) for three recent years: For Years Ended December 31 Year 3 Year 2 Year 1 Cash and cash equivalents $69,485 $24,074 $43,640 Net cash flows from operations (100,139) (51,669) (45,794) a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1 (in thousands). Round to one decimal place. Year 3: $ per month Year 2: $ per month Year 1: $ per month b. Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1 as of December 31. Round to one decimal place. Year 3: months Year 2: months Year 1: months c. Based on (a) and (b), which of the following statements is correct. 1. Amicus has been able to support its operations by issuing additional stock. However, its negative cash flows have increased from Year 1 to Year 3. 2. Amicus has been able to support its operations generating positive cash flows. Its positive cash flows have increased from Year 1 to Year 3. 3. Amicus has been able to support its operations generating positive cash flows. However the cash flows generated are used to purchase short term investment.
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