ANNAPOLIS, Md., Nov. 13 /PRNewswire-FirstCall/ -- PharmAthene, Inc.
(Amex: PIP) a biodefense company developing medical countermeasures against
biological and chemical threats, today reported financial results for the
third quarter ended September 30, 2007.
"During the third quarter we reached a significant milestone in our
corporate history," remarked David P. Wright, President and Chief Executive
Officer. "By completing our merger with Healthcare Acquisition Corp. (HAQ),
a publicly traded special purpose acquisition company, PharmAthene is now a
publicly-traded company with a strong financial foundation and enhanced
access to capital with which to pursue the Company's business objectives."
"We plan to use these resources to continue the growth of our product
grant and procurement revenues. Longer-term we will use these increased
resources to accelerate our growth through either in-licensing agreements,
co- development opportunities, or strategic acquisitions in biodefense and
other commercial markets," continued Mr. Wright.
Financial Results
For the current quarter PharmAthene recognized revenues of $3.4 million
for the three months ended September 30, 2007. For the nine months ended
September 30, 2007, PharmAthene recognized revenues of $8.7 million. These
revenues consist primarily of contract and grant funding from the U.S.
government.
PharmAthene's research and development expenses were $3.6 million for
the three months ended September 30, 2007. For the nine months ended
September 30, 2007, PharmAthene recognized research and development
expenses of $10.7 million. 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 Protexia(R),
for treatment of nerve agent poisoning. Research and development expense
increased $2.0 million for the three months ended September 30, 2007 as
compared to the three months ended September 30, 2006 primarily as a result
of increased process development and manufacturing activities for both
Valortim and Protexia.
General and administrative expenses for the Company were $3.2 million
for the three months ended September 30, 2007. Expenses associated with
general and administrative functions for the Company were $8.6 million for
the nine months ended September 30, 2007.
PharmAthene's net loss for the third quarter of 2007 was $0.3 million.
Net loss attributable to common shareholders for the quarter was $0.07 per
basic and diluted share. This included a one-time gain on extinguishment of
debt of $1.2 million, related to the conversion of notes associated with
the merger with Healthcare Acquisition Corp., and $2.4 million related to
the change in the market value of derivative instruments, which were
cancelled with the merger. Net loss for the nine months ended September 30,
2007 was $8.5 million or a loss of $2.44 per basic and diluted share.
As of September 30, cash and cash equivalents were $60.3 million. The
$55.2 million increase in cash and cash equivalents from December 31, 2006
was primarily attributable to the merger with HAQ, which resulted in net
cash proceeds of $58.7 million, and to the March 2007 $10 million debt
financing, partially offset by the funding of operations.
Quarterly Business Highlights
In addition to the completion of the HAQ merger, PharmAthene
demonstrated additional corporate milestones in the quarter, including:
-- PharmAthene and Medarex, Inc. announced on November 8, 2007 that the FY
2008 Department of Defense (DoD) appropriations bill includes $0.8
million payable to PharmAthene on a cost reimbursement basis to support
ongoing development of Valortim(TM). This is the third consecutive
year in which PharmAthene has received appropriations funding for
Valortim(TM).
-- PharmAthene and Medarex announced on September 26, 2007 that the
National Institute of Allergy and Infectious Diseases (NIAID) and the
Biomedical Advanced Research and Development Authority (BARDA), part of
the National Institutes of Health (NIH), has awarded PharmAthene a
contract for the advanced development of Valortim(TM), a fully human
monoclonal antibody generated by Medarex's UltiMAb(R) technology that
is being co-developed by the two companies. The contract, valued at up
to $13.9 million supports the development of Valortim(TM) for use as an
anti-toxin therapeutic to prevent and treat inhalation anthrax
infection. The contract is effective as of September 28, 2007 and will
be incrementally funded through 2009. Funding for the contract's
initial fiscal year could reach up to $10.3 million.
-- PharmAthene and Medarex announced the results of new studies showing
that the companies' anthrax anti-toxin, Valortim(TM) may possess the
ability to enhance macrophage killing of Bacillus anthracis (anthrax)
spores within macrophages, potentially blocking the ability of these
spores to develop into bacteria, thereby preventing toxin production
and propagation of the infection. The new data were recently presented
by Dr. Alan Cross, Professor of Medicine, University of Maryland School
of Medicine, Baltimore, Maryland at the Bacillus ACT 2007 International
Conference on Bacillus anthracis.
Conference Call Information: PharmAthene management will host a
conference call to discuss the third quarter financial results. The call
will take place at 4:30 p.m. E.T. today, November 13, 2007. The dial-in
number within the United States is 866-510-0676. The dial-in number for
international callers is 617-597-5361. The participant passcode is
15368854.
Conference Call Replay: A replay of the conference call will be
available for 30 days, beginning at approximately 6:30 p.m. E.T. November
13th, 2007 until approximately 11:50 p.m. E.T. December 13, 2007. 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 84931672.
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
December 13, 2007.
About PharmAthene, Inc.: PharmAthene is a biodefense company formed in
2001 to meet the critical needs of the United States by developing
biodefense products. PharmAthene is dedicated to the rapid development of
important and novel biotherapeutics to address biological pathogens and
chemicals that may be used as weapons of bioterror. PharmAthene's lead
programs include Valortim(TM) and Protexia(R). For more information on
PharmAthene, please visit its website at 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. 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
September 30, December 31
2007 2006
Assets (Unaudited)
Current assets:
Cash and cash equivalents $60,337,173 $5,112,212
Accounts receivable 3,219,000 1,455,538
Prepaid expenses 559,819 877,621
Other current assets 67,756 104,772
Total current assets 64,183,748 7,550,143
Property and equipment, net 6,715,644 5,230,212
Patents, net 1,332,889 1,246,236
Other long term assets 183,588 153,336
Deferred costs 77,205 587,577
Total assets $72,493,074 $14,767,504
Liabilities, convertible redeemable
preferred stock, and stockholders'
equity (deficit)
Current liabilities:
Accounts payable $1,775,071 $839,120
Accrued expenses and other liabilities 5,038,080 1,587,017
Notes payable - 11,768,089
Current portion of long term debt 4,000,000 -
Total current liabilities 10,813,151 14,194,226
Warrants to purchase Series C convertible
redeemable preferred stock - 2,423,370
Long term debt 17,678,722 -
Total liabilities 28,491,873 16,617,596
Minority interest - Series C convertible
redeemable preferred stock of PharmAthene
Canada, Inc., $0.001 par value; unlimited
shares authorized; 2,591,654 issued and
outstanding; liquidation preference in the
aggregate of $2,719,178 - 2,545,785
Series A convertible redeemable preferred
stock, $0.001 par value; 16,442,000 shares
authorized, issued and outstanding;
liquidation preference in the aggregate
of $19,355,388 - 19,130,916
Series B convertible redeemable preferred
stock, $0.001 par value; 65,768,001 shares
authorized; 30,448,147 issued and outstanding;
liquidation preference in the aggregate
of $33,010,797 - 31,780,064
Series C convertible redeemable preferred stock,
$0.001 par value; 22,799,574 shares authorized;
14,946,479 issued and outstanding; liquidation
preference in the aggregate of $15,681,930 - 14,480,946
Stockholders' equity (deficit):
Common stock, $0.0001 par value; 100,000,000
shares authorized; 22,087,121 at September 30,
2007 and 621,281 at December 31, 2006 shares
issued and outstanding 2,209 63
Additional paid-in capital 124,988,347 -
Accumulated other comprehensive income 1,314,017 63,954
Accumulated deficit (82,303,372) (69,851,820)
Total stockholders' equity (deficit) 44,001,201 (69,787,803)
Total liabilities, convertible redeemable
preferred stock, and stockholders'
equity (deficit) $72,493,074 $14,767,504
PharmAthene, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Contract and grant
revenue $3,371,299 $- $8,672,485 $178,701
Other revenue 831 1,590 7,831 9,331
3,372,130 1,590 8,680,316 188,032
Operating expenses:
Research and
development 3,647,329 1,670,238 10,734,292 4,836,199
General and
administrative 3,150,894 1,607,080 8,605,147 4,555,250
Depreciation and
amortization 209,420 134,813 518,713 389,975
Total operating
expenses 7,007,643 3,412,131 19,858,152 9,781,424
Loss from
operations (3,635,513) (3,410,541) (11,177,836) (9,593,392)
Other income
(expense):
Interest income 275,550 24,519 424,763 131,245
Gain on
extinguishment
of debt 1,206,743 - 1,206,743 -
Interest expense (593,893) (298,088) (1,365,165) (298,157)
Change in market
value of
derivative
instruments 2,430,199 19,435 2,423,370 (345,830)
Total other income
(expense) 3,318,599 (254,134) 2,689,711 (512,742)
Net loss (316,914) (3,664,675) (8,488,125) (10,106,134)
Accretion of
redeemable
convertible
preferred stock
to redemptive
value (653,197) (1,658,546) (4,133,733) (4,931,125)
Net loss
attributable to
common
shareholders $(970,111) $(5,323,221) $(12,621,858) $(15,037,259)
Basic and diluted
net loss per
share attributable
to common
stockholders $(0.07) $(9.51) $(2.44) $(27.35)
Weighted average
shares used in
calculation of
basic and diluted
net loss per
share 14,154,116 559,751 5,181,823 549,714
SOURCE PharmAthene, Inc.
 back to top
Related links:
http://www.pharmathene.com/
CONTACT:
Stacey Jurchison of PharmAthene, Inc.,
+1-410-269-2610, JurchisonS@PharmAthene.com
|
