Biotech Finance
Cash Runway
Cash runway is the length of time a company can keep operating before it exhausts its cash, calculated from its cash balance and quarterly burn rate. For pre-revenue biotech it is a critical risk metric, since a short runway often forces dilutive financing.
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- Biotech Finance
Prepared research question
How does Cash Runway affect the view of a biotech company in practice?
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Cash runway is the length of time a company can keep operating before it exhausts its cash, calculated from its cash balance and quarterly burn rate. For pre-revenue biotech it is a critical risk metric, since a short runway often forces dilutive financing.
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From term to thesis rule
Investigate how Cash Runway changes a biotech thesis
Define when Cash Runway should count, block, or trigger a deeper check; BioSniper will compile that logic against available evidence.