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Liminal BioSciences Balance Sheet Health

Financial Health criteria checks 4/6

Liminal BioSciences has a total shareholder equity of CA$21.5M and total debt of CA$0.0, which brings its debt-to-equity ratio to 0%. Its total assets and total liabilities are CA$31.8M and CA$10.3M respectively.

Key information

Debt to equity ratio

CA$0

Debt

Interest coverage ratio	n/a
Cash	CA$19.31m
Equity	CA$21.48m
Total liabilities	CA$10.32m
Total assets	CA$31.80m

Recent financial health updates

Recent updates

Seeking Alpha • Sep 02

Liminal transfers to Nasdaq Capital Market, gets more time to comply with listing rule

Liminal BioSciences (NASDAQ:LMNL) received approval from the Qualifications Department of The Nasdaq Stock Market to transfer its common shares from the Nasdaq Global Market to the Nasdaq Capital Market. The Canadian company said its shares will begin trading on the Nasdaq Capital Market on Sept. 6 and will continue to trade under the symbol "LMNL". Liminal noted that in March 4, it received a notice from Nasdaq for not being in compliance with the exchange's minimum bid price rule of $1.00 per share for continued listing on the exchange. The company had then been granted 180 days to comply with the rule and now with the transfer to the Nasdaq Capital Market, Nasdaq has granted a second period of 180 calendar days or until Feb. 27, 2023, to regain compliance. Liminal said that it may implement a reverse stock split, if necessary, to regain compliance.

Seeking Alpha • Aug 25

Liminal BioSciences ends CDMO agreement for $33M cost savings

Canadian biotech Liminal BioSciences (NASDAQ:LMNL) announced Thursday that the company terminated the long-term legacy CDMO agreement relating to its previously owned plasma-derived therapeutics business in favor of ~$33.1M cash savings. The deal signed in May 2021 included a $9M minimum purchase commitment per year for the remaining contract period. Previously, LMNL had sent an early five-year termination notice to end the agreement in August 2021. The termination agreement ends the deal with immediate effect, and per the terms, LMNL will pay $18M to cover past sums due to the termination date. Additional two payments worth $3.4M each are due in Q1 2023 and Q1 2024. "We are very pleased to have reached this agreement, which results in anticipated cash savings of approximately $33.1 million," Chief Executive Bruce Pritchard remarked. In October, LMNL announced the complete divestment of its plasma-derived therapeutics business for more than $100M.

Seeking Alpha • Jul 21

Liminal BioSciences discontinues fezagepras development

Liminal BioSciences (NASDAQ:LMNL) said Thursday it discontinued development of fezagepras. The decision is based on results from the phase 1a single ascending dose clinical trial, which showed that fezagepras was significantly inferior to sodium phenylbutyrate as a nitrogen scavenger. The clinical trial, which began in May, was designed as a head-to-head comparison with sodium phenylbutyrate to evaluate whether fezagepras was worth developing. The decision to stop fezagepras' development was not based on safety concerns.

Financial Position Analysis

Short Term Liabilities: LMNL's short term assets (CA$25.6M) exceed its short term liabilities (CA$9.2M).

Long Term Liabilities: LMNL's short term assets (CA$25.6M) exceed its long term liabilities (CA$1.1M).

Debt to Equity History and Analysis

Debt Level: LMNL is debt free.

Reducing Debt: LMNL has no debt compared to 5 years ago when its debt to equity ratio was 140.4%.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LMNL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LMNL has less than a year of cash runway if free cash flow continues to grow at historical rates of 14.7% each year.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2023/09/27 16:47
End of Day Share Price	2023/09/25 00:00
Earnings	2023/06/30
Annual Earnings	2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Liminal BioSciences Inc. is covered by 12 analysts. of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Doug Cooper	Beacon Securities Limited
Antonia Borovina	Bloom Burton & Co.
Dewey Steadman	Canaccord Genuity