ANNAPOLIS, Md., Nov. 13 /PRNewswire-FirstCall/ -- PharmAthene, Inc.
(NYSE Alternext US: PIP), a biodefense company developing medical
countermeasures against biological and chemical threats, today reported
financial and operational results for the third quarter and nine months ended
September 30, 2008.
For the third quarter of 2008, PharmAthene recognized revenues of $10.7
million compared to $3.4 million in the same period of 2007. For the nine
months ended September 30, 2008 and 2007, the Company reported revenues of
$27.4 million and $8.7 million, respectively. These revenues consisted
primarily of contract funding from the U.S. government for the development of
the Company's medical countermeasures, Protexia(R), SparVax(TM) and
RypVax(TM). As a result of the Avecia vaccines acquisition in the second
quarter of 2008, and particularly the acquired U.S. government contracts
supporting the development of the rPA anthrax vaccines and RypVax(TM) plague
vaccine product candidates, revenues for the three and nine month periods
ended September 30, 2008 were further boosted by $5.5 million and $8.9
million, respectively.
Research and development expenses were $9.4 million and $3.6 million for
the quarter ended September 30, 2008 and 2007, respectively. For the nine
months ended September 30, 2008 and 2007, research and development expenses
were $26.5 million and $10.7 million, respectively. Expenses for the third
quarter and nine months of 2008 resulted from research and development
activities related to programs for Valortim(R) and Protexia(R) as well as
expenses related to the Company's SparVax(TM) and RypVax(TM) programs, which
were acquired in the second quarter of 2008. The increase in research and
development expenses is primarily due to process development expenses,
manufacturing activities and clinical development expenses related to the
Company's programs.
General and administrative expenses for the Company were $4.8 million and
$3.2 million for the quarter ended September 30, 2008 and 2007, respectively.
For the nine months ended September 30, 2008 and 2007, general and
administrative expenses were $14.7 million and $8.6 million, respectively.
General and administrative expenses increased as a result of additional
employee costs due to the increase in headcount following the Avecia
acquisition, as well as increased travel expenses, non-cash stock compensation
expense, and increased legal and consulting expenses.
For the third quarter of 2008 PharmAthene's net loss attributable to
common shareholders was $4.3 million or $0.20 per share, compared to $1.0
million or $0.07 per share in the same period of 2007. For the nine months
ended September 30, 2008, the Company's net loss attributable to common
shareholders was $31.2 million or $1.41 per share, compared to $12.6 million
or $2.44 per share in the same period of 2007.
As of September 30, 2008, available cash, cash equivalents and short term
investments were $13.2 million, excluding restricted cash totaling $14.5
million and gross proceeds from the Panacea Biotec investment of $13.1 million
received in October 2008.
"The past several months have been an extraordinarily exciting time for
PharmAthene as we continue to execute successfully against our objectives and
achieve significant milestones in each of our biodefense programs," said David
P. Wright, President and Chief Executive Officer.
"The next several months will be a pivotal time for our organization as we
transition from a development company to one potentially generating product
revenues if we are awarded a procurement contract for SparVax(TM)," continued
Mr. Wright.
"We also strengthened our balance sheet in October 2008, adding gross
proceeds of $13.1 million as part of a strategic investment by Panacea Biotec
Ltd. Together these achievements provide a solid foundation from which to
continue to advance our business objectives and build value for our
shareholders," said Mr. Wright.
Conference Call and Webcast Information
PharmAthene management will host a conference call to discuss the
Company's third quarter and nine month results on November 13, 2008, at 4:30
p.m., E.T. The dial-in number for U.S. callers is 800-798-2801 and for
international callers is 617-614-6205. The participant passcode is 81927054.
A replay of the conference call will be available for 30 days, beginning
at approximately 6:30 p.m. E.T. on November 13, 2008 until approximately 11:50
p.m. E.T.December 13, 2008. The dial-in number for U.S. callers is
888-286-8010, and for international callers is 617-801-6888. The participant
passcode is 74215682.
The webcast of the conference call can be accessed from the company's
website at http://www.pharmathene.com. A link to the webcast may be found on
the Investor Relations section of the website.
About PharmAthene, Inc.
PharmAthene was formed to meet the critical needs of the United States and
its allies by developing and commercializing medical countermeasures against
biological and chemical weapons. PharmAthene's lead product development
programs include:
-- SparVax(TM) - a second generation recombinant protective antigen (rPA)
anthrax vaccine
-- Valortim(R) - a fully human monoclonal antibody for the prevention and
treatment of anthrax infection
-- Protexia(R) - a novel bioscavenger for the prevention and treatment of
morbidity and mortality associated with exposure to chemical nerve
agents
-- RypVax(TM) - a recombinant dual antigen vaccine for plague
-- a third generation rPA anthrax vaccine.
For more information about PharmAthene, please visit www.PharmAthene.com.
Statement on Cautionary Factors
Except for the historical information presented herein, matters discussed
may constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that are subject to certain risks and
uncertainties that could cause actual results to differ materially from any
future results, performance or achievements expressed or implied by such
statements. Statements that are not historical facts, including statements
preceded by, followed by, or that include the words "potential"; "believe";
"anticipate"; "intend"; "plan"; "expect"; "estimate"; "could"; "may";
"should"; or similar statements are forward-looking statements. PharmAthene
disclaims, however, any intent or obligation to update these forward-looking
statements. Risks and uncertainties include risk associated with the
reliability of the results of the studies relating to human safety and
possible adverse effects resulting from the administration of the Company's
product candidates, unexpected funding delays and/or reductions or elimination
of U.S. government funding for one or more of the Company's development
programs, including without limitation our bid related to SparVax(TM) under
the DHHS Request for Proposals for an Anthrax Recombinant Protective Antigen
(rPA) Vaccine for the Strategic National Stockpile, the award of government
contracts to our competitors, unforeseen safety issues, challenges related to
the development, scale-up, and/or process validation of manufacturing
processes for our product candidates, unexpected determinations that these
product candidates prove not to be effective and/or capable of being marketed
as products, as well as risks detailed from time to time in PharmAthene's
Forms 10-K and 10-Q under the caption "Risk Factors" and in its other reports
filed with the U.S. Securities and Exchange Commission (the "SEC").
Copies of PharmAthene's public disclosure filings are available from its
investor relations department and our website under the investor relations tab
at http://www.pharmathene.com.
PHARMATHENE, INC.
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2008 2007
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $10,140,919 $40,582,643
Restricted cash 5,000,000 -
Short-term investments 3,107,108 12,153,945
Accounts receivable 10,912,569 4,005,693
Other receivables 543,309 1,240,069
Prepaid expenses and other current assets 844,375 492,294
Total current assets 30,548,280 58,474,645
Long-term restricted cash 9,500,000 -
Property and equipment, net 6,191,093 6,571,024
Patents, net 1,128,222 1,312,991
Other long-term assets 183,588 183,588
Deferred costs 251,193 68,884
Goodwill 2,502,909 -
Total assets $50,305,285 $66,611,132
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $3,205,696 $1,393,664
Accrued expenses and other liabilities 9,299,964 3,602,886
Note payable 12,932,973 -
Current portion of long-term debt 4,000,000 4,000,000
Total current liabilities 29,438,633 8,996,550
Other long-term liabilities 7,793,835 374,040
Long-term debt 1,904,936 16,668,458
Total liabilities 39,137,404 26,039,048
Stockholders' equity:
Common stock, $0.0001 par value; 100,000,000
shares authorized; 22,113,684 and
22,087,121 shares issued and outstanding;
respectively, at September 30, 2008 and
December 31, 2007 2,212 2,209
Additional paid-in capital 128,705,555 126,490,647
Accumulated other comprehensive income 1,075,828 1,481,779
Accumulated deficit (118,615,714) (87,402,551)
Total stockholders' equity 11,167,881 40,572,084
Total liabilities and stockholders' equity $50,305,285 $66,611,132
PHARMATHENE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
(unaudited) (unaudited)
Contract revenue $10,643,705 $3,371,299 $27,377,207 $8,672,485
Other revenue 32,461 831 53,612 7,831
10,676,166 3,372,130 27,430,819 8,680,316
Operating expenses:
Research and
development 9,414,093 3,647,329 26,475,436 10,734,292
General and
administrative 4,803,190 3,150,894 14,655,971 8,605,147
Acquired in-process
research and
development 225,000 - 16,131,002 -
Depreciation and
amortization 205,409 209,420 641,425 518,713
Total operating
expenses 14,647,692 7,007,643 57,903,834 19,858,152
Loss from operations (3,971,526) (3,635,513) (30,473,015) (11,177,836)
Other income (expense):
Interest income 200,979 275,550 1,034,914 424,763
Gain on the
extinguishment of
debt - 1,206,743 - 1,206,743
Other income (expense) 49,035 - 49,035 -
Interest expense (628,470) (593,893) (1,947,245) (1,365,165)
Change in market
value of derivative
instruments 7,604 2,430,199 123,148 2,423,370
Total other expense (370,852) 3,318,599 (740,148) 2,689,711
Net loss (4,342,378) (316,914) (31,213,163) (8,488,125)
Accretion of
redeemable
convertible
preferred stock to
redemptive value - (653,197) - (4,133,733)
Net loss
attributable to
common shareholders $(4,342,378) $(970,111) $(31,213,163) $(12,621,858)
Basic and diluted net
loss per share $(0.20) $(0.07) $(1.41) $(2.44)
Weighted average
shares used in
calculation of
basic and diluted
net loss per share 22,095,545 14,154,116 22,089,949 5,181,823
