Is sana going to go bankrupt

**Sana Biotechnology's probability of bankruptcy is currently low but increasing.** Here's the analysis: 1. **Current Financial Health**: Sana Biotechnology has a negative free cash flow of $171.51 million and a net loss of $50.29 million as of Q2 2024. The company's cash and cash equivalents have also fluctuated, with a recent decrease to $134.96 million as of Q2 2024. |Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|code|market_code| |---|---|---|---|---|---|---|---|---| |SANA.O|Sana Biotechnology|2024 Q2|-1.7151E8|5818000|-5.8541E7|1.0627E7|SANA|185| |Ticker|Name|Date|Cash and Cash Equivalents|code|market_code| |---|---|---|---|---|---| |SANA.O|Sana Biotechnology|20220930|1.63343E8|SANA|185| |SANA.O|Sana Biotechnology|20221231|1.76765E8|SANA|185| |SANA.O|Sana Biotechnology|20230331|1.60456E8|SANA|185| |SANA.O|Sana Biotechnology|20230630|1.73787E8|SANA|185| |SANA.O|Sana Biotechnology|20230930|1.68448E8|SANA|185| |SANA.O|Sana Biotechnology|20231231|1.33517E8|SANA|185| |SANA.O|Sana Biotechnology|20240331|1.77054E8|SANA|185| |SANA.O|Sana Biotechnology|20240630|1.34958E8|SANA|185| 2. **Cash Burn and Runway**: Sana has been burning through cash at a rate of $58.54 million in operating cash flow and $5.82 million in investing cash flow. The company's cash runway, which is the length of time it could operate without raising additional capital, is under pressure. 3. **Financial Projections**: The company's financial distress probability is over 50% at this time, and the probability of bankruptcy is 45.42%. These figures suggest that while Sana is not yet on the verge of bankruptcy, it is at risk of facing financial distress in the near future. 4. **Market Challenges**: The biotech industry has experienced a record number of bankruptcies, and Sana's funding environment remains challenging. The company's need to manage cash burn and raise additional capital is critical. 5. **Strategic Initiatives**: Sana is advancing multiple clinical trials, which could be pivotal in its long-term viability. The company's goal to treat 40-60 patients in 2024 across four trials in seven indications is a positive sign. Additionally, the potential for strategic partnerships and financing could mitigate the risk of bankruptcy. In conclusion, while Sana Biotechnology has the potential for long-term growth with its innovative platform and ongoing clinical trials, the company's current financial indicators and the challenging biotech landscape suggest that the probability of bankruptcy is increasing.