ANNAPOLIS, Md., May 13 /PRNewswire-FirstCall/ -- PharmAthene, Inc.
(Amex: PIP) a biodefense company developing medical countermeasures against
biological and chemical threats, today reported financial results for the
first quarter ended March 31, 2008.
"The first quarter was a particularly productive and exciting time for
our Company. With the acquisition of Avecia's biodefense vaccines
portfolio, completed on April 2, 2008, PharmAthene made substantial
progress advancing our mission of becoming a premier biodefense company
with industry-leading capabilities and a diversified portfolio of
best-in-class, next generation products," commented David P. Wright,
President and Chief Executive Officer.
"We have sought first to understand the needs of our customer -- the
government, and then identify and acquire the very best products to meet
those requirements. By adhering to this strategy we have built a
diversified biodefense portfolio that includes novel, next generation rPA
anthrax vaccines, an anthrax anti-toxin, Valortim(TM), a chemical nerve
agent bioscavenger, Protexia(R), and a novel dual antigen plague vaccine.
Many of these programs are poised to achieve important milestones this
year, which have the potential to create significant value for our
stockholders," said Mr. Wright.
In 2008, PharmAthene expects to:
-- Submit a response to a Request for Proposals (RFP) issued by the
Department of Health and Human Services (DHHS) for procurement
consideration of PharmAthene's second generation rPA anthrax vaccine.
The RFP has a requirement to procure 25 million doses of rPA anthrax
vaccine.
-- File an Investigational New Drug Application for Protexia(R), and
commence the first Phase I safety study in humans, which is expected to
be completed early next year.
Financial Results
PharmAthene received revenues of $5.8 million for the three months
ended March 31, 2008 compared to $3.0 million for the same period in 2007.
These revenues consist primarily of contract and grant funding from the
U.S. government for the development of the Company's chemical nerve agent
prophylaxis, Protexia(R).
PharmAthene's research and development expenses were $5.9 million and
$3.1 million for the three months ended March 31, 2008 and 2007,
respectively. These expenses resulted primarily from research and
development activities related to the development of Valortim(TM) for
protection against and treatment of inhalation anthrax, and the development
of Protexia(R) for treatment of nerve agent poisoning. Research and
development expense increased $2.8 million for the three months ended March
31, 2008 as compared to the same period in 2007, primarily as a result of
increased process development and manufacturing activities for both
Valortim(TM) and Protexia(R), and employee-related expenses including stock
compensation expense.
General and administrative expenses for the Company were $4.7 million
and $2.5 million respectively, for the three months ended March 31, 2008
and 2007. Expenses associated with general and administrative functions for
the Company increased $2.2 million primarily due to increased employee
costs, increased stock compensation expense and additional costs associated
with the Company's compliance and legal functions.
PharmAthene's net loss for the first quarter of 2008 was $5.0 million
or $0.23 per share.
As of March 31, 2008, available cash, cash equivalents and short term
investments were $25.7 million, after giving effect to $20.0 million in
restricted cash.
Conference Call Information
PharmAthene management will host a conference call to discuss the
Company's first quarter 2008 financial results on Tuesday, May 13, 2008
beginning at 4:30 p.m. E.T. The dial-in number within the United States is
866-770-7129. The dial-in number for international callers is 617-213-8067.
The participant passcode is 26177716.
Conference Call Replay
A replay of the conference call will be available for 30 days,
beginning at approximately 6:30 p.m. E.T. May 13, 2008 until approximately
11:50 p.m. E.T. June 13, 2008. The dial-in number from within the United
States is 888-286-8010. For international callers, the dial-in number is
617-801-6888. The participant passcode is 15975144.
Webcast
The conference call will also be webcast and can be accessed from the
company's website at http://www.pharmathene.com. A link to the webcast may
be found on both the Home Page and also under the Investor Relations
section of the website. The webcast will be available for 30 days, or until
June 13, 2008.
About PharmAthene, Inc.
PharmAthene's (Amex: PIP) mission is to be the premier company
worldwide specializing in the development and commercialization of
therapeutic and prophylactic products for defense against biological and
chemical threats. Since its inception, PharmAthene has pursued an
acquisitive growth strategy focused on high priority, next generation
biodefense products that are in a class of products the government has
expressed a clear need and intent to procure. PharmAthene's portfolio
currently includes five biodefense medical countermeasures: Recombinant
Protective Antigen (rPA) anthrax vaccine; Valortim(TM), an anthrax
anti-toxin therapeutic which is being co-developed with Medarex;
Protexia(R) a novel recombinant bioscavenger to prevent and treat
organophosphorous nerve agent poisoning; RypVax(TM), a recombinant dual
antigen plague vaccine; and finally, third generation rPA anthrax vaccine
technology. For more information about PharmAthene, please visit
http://www.PharmAthene.com.
Statement on Cautionary Factors
Except for the historical information presented herein, matters
described in this press release may constitute forward-looking statements
which are within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. In some cases, forward-looking
statements can be identified by words such as "believe," "expect,"
"anticipate," "plan," "potential," "continue" or similar expressions and
relate to, among other things, the ability of the Company to achieve
milestones or to create value for its stockholders. Forward-looking
statements also include the assumptions underlying or relating to any of
the foregoing statements. Such forward-looking statements are based upon
current expectations or beliefs of management and are subject to a number
of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements
including, but not limited to, risks associated with obtaining regulatory
approvals, unforeseen technical difficulties, dependencies on certain
customers or products, market acceptance and competition, ability to
receive grant and contract revenue and procurement funding, ability to
identify any additional strategic acquisitions or other opportunities to
accelerate growth, cash at the end of the year, as well as other risks
described in the Company's filings with the Securities and Exchange
Commission, in conference calls and in other communications.
PharmAthene Inc.
Consolidated Balance Sheets
ASSETS
March 31, December 31,
2008 2007
(unaudited)
Current assets:
Cash and cash equivalents $19,239,265 $40,582,643
Restricted cash 5,000,000 -
Short-term investments 6,415,735 12,153,945
Accounts receivable 6,562,753 5,245,763
Prepaid expenses 1,068,407 476,511
Other current assets 254,197 15,783
Total current assets 38,540,357 58,474,645
Long term restricted cash 15,000,000 -
Property and equipment, net 6,288,751 6,571,024
Patents, net 1,221,809 1,312,991
Other long term assets 183,588 183,588
Deferred costs 988,650 68,884
Total assets $62,223,155 $66,611,132
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $1,434,184 $1,393,664
Accrued expenses and other liabilities 4,296,922 3,602,886
Current portion of long term debt 4,000,000 4,000,000
Total current liabilities 9,731,106 8,996,550
Other long term liabilities 376,501 374,040
Long term debt 15,994,706 16,668,458
Total liabilities 26,102,313 26,039,048
Stockholders' equity:
Common stock, $0.0001 par
value; 100,000,000 shares
authorized; 22,138,723 and
22,087,121 shares issued and
outstanding; respectively, at
March 31, 2008 and December 31, 2007 2,209 2,209
Additional paid-in capital 127,278,108 126,490,647
Accumulated other comprehensive income 1,260,704 1,481,779
Accumulated deficit (92,420,179) (87,402,551)
Total stockholders' equity 36,120,842 40,572,084
Total liabilities and stockholders'
equity $62,223,155 $66,611,132
PharmAthene, Inc.
Consolidated Statements of Operations
(Unaudited)
Three months ended March 31,
2008 2007
(unaudited)
Contract and grant revenue $5,819,054 $2,961,759
Other revenue 21,151 7,000
5,840,205 2,968,759
Operating expenses:
Research and development 5,877,055 3,091,604
General and administrative 4,678,723 2,479,825
Depreciation and amortization 196,103 147,133
Total operating expenses 10,751,881 5,718,562
Loss from operations (4,911,676) (2,749,803)
Other income (expense):
Interest income 471,765 55,616
Interest expense (666,997) (241,781)
Change in market value of derivative
instruments 89,280 7,626
Total other expense (105,952) (178,539)
Net loss (5,017,628) (2,928,342)
Accretion of redeemable convertible
preferred stock to redemptive value - (1,732,275)
Net loss attributable to common $(5,017,628) $(4,660,617)
shareholders
Basic and diluted net loss per share $(0.23) $(7.50)
Weighted average shares used in calculation
of basic and diluted net loss per share 22,087,121 621,298
SOURCE PharmAthene, Inc.
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Related links:
http://www.pharmathene.com
CONTACT:
Stacey Jurchison of PharmAthene, Inc.,
+1-410-269-2610, JurchisonS@PharmAthene.com
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