Cash runway 1 article

Cash runway estimates how long a company can continue operating before its available cash is exhausted at an assumed rate of cash use. Biotechnology analysts often relate cash balances to expected operating burn while considering planned trials, manufacturing and other development costs. Runway is therefore a financing-horizon concept rather than a fixed accounting figure: changes in spending, milestone receipts, partnerships or capital raises can alter it, and it is most useful when the assumptions behind the estimate are explicit.