Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham

News Feed Item

PharmAthene Reports Third Quarter 2012 Financial Results

Recent Highlights

ANNAPOLIS, Md., Nov. 6, 2012 /PRNewswire/ -- PharmAthene, Inc. (NYSE Amex: PIP), a biodefense company developing medical countermeasures against biological and chemical threats, today reported its financial results for the third quarter ended September 30, 2012.

President and Chief Executive Officer, Eric I. Richman, said, "We made steady progress in the third quarter toward meeting our objectives. Most importantly, we have worked expeditiously to address the U.S. Food and Drug Administration's (FDA) request for additional information on our SparVax™ program, and are pleased to report that we expect to submit a complete response to the FDA shortly."

Mr. Richman continued, "Regarding the ongoing litigation with SIGA, we are now entering the final stages of the appeals process, as all legal briefs required from both PharmAthene and SIGA have been submitted to the Court and a date for oral argument has been set for January 10, 2013.  We remain confident in the merits of our case and the decision of the Delaware Court of Chancery and look forward to a final ruling from the Delaware Supreme Court no later than the second quarter of 2013."

Linda L. Chang, Senior Vice President and Chief Financial Officer, remarked, "We continue to meet our financial goals for 2012.  At the end of the third quarter of 2012 we had cash and receivables totaling approximately $20.0 million compared to $18.7 million at December 31, 2011.  Net cash used in operations year-to-date is approximately $178,000.  At this point, we are optimistic that we will be able to meet or exceed our annual cash burn goal for 2012 of $6.0 million with cash burn defined as the change in our cash and cash equivalents."

Third Quarter 2012 Financial Results

Revenue

For the third quarter ended September 30, 2012, PharmAthene recognized revenue of $6.7 million, compared to $5.3 million for the same period in 2011.  Revenue in the third quarter of 2012 was primarily from development contracts with the U.S. government for the Company's SparVax™ and rBChE bioscavenger programs. 

Operating Expenses     

Research and development expenses for the third quarter ended September 30, 2012 were $5.1 million, compared to $4.9 million for the same period in 2011.  Research and development expenses increased during the third quarter primarily as a result of higher direct expenses under the Company's SparVax™ anthrax vaccine program although there were decreased costs for the Company's Valortim® program and a reduction in non-government funded internal research and development activities and other expenses.

Expenses associated with general and administrative functions were $3.3 million for each of the three month periods ended September 30, 2012 and 2011.

Net Loss

For the third quarter of 2012, PharmAthene's net loss attributable to common shareholders was $0.2 million, or $0.00 per share, compared to $0.03 million, or $0.00 per share, in the same period of 2011.  Included in the net loss for the nine months ended September 30, 2012 was a $1.2 million gain associated with the realization of a cumulative translation adjustment and a $0.5 million gain reflecting the change in fair value of the Company's derivative investments.

Cash Position and Accounts Receivables

As of September 30, 2012, the Company had cash and cash equivalents and U.S. government billed and unbilled accounts receivables totaling approximately $20.0 million, compared to $18.7 million at December 31, 2011.  The increase in cash from December 31, 2011 to September 30, 2012 was primarily a result of amounts provided under the term loan and revolving line of credit with GE Capital, partially offset by cash used in operations.

Conference Call and Webcast Information

PharmAthene management will be hosting a conference call to discuss the Company's third quarter 2012 financial and operational results.  The call is scheduled to begin at 4:30 pm Eastern Time on Tuesday, November 6, 2012 and is expected to last approximately 30 minutes. The dial-in number within the United States is 866-713-8564.  The dial-in number for international callers is 617-597-5312.  The participant passcode is 39812910.

A replay of the conference call will be available beginning at approximately 6:30 pm Eastern Time on November 6, 2012 until approximately 11:59 p.m. Eastern Time on December 6, 2012.  The dial-in number to access the replay from within the United States is 888-286-8010.   For international callers, the dial-in number is 617-801-6888.  The participant passcode is 75262898.

The conference call will also be webcast and can be accessed from the Company's website at www.PharmAthene.com.  A link to the webcast may be found under 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 threats. PharmAthene's lead product development programs include:

  • SparVax™ - a second generation recombinant protective antigen (rPA) anthrax vaccine
  • Recombinant BChE- a novel bioscavenger for the prevention and treatment of morbidity and mortality associated with exposure to chemical nerve agents
  • Valortim® - a fully human monoclonal antibody for the prevention and treatment of anthrax infection

In addition, pursuant to a final judgment issued May 31, 2012 from the Delaware Court of Chancery, PharmAthene is entitled to 50% of all net profits related to the sale of SIGA Technologies' ST-246® and related products for 10 years following initial commercial sale of the drug once SIGA earns the first $40 million in net profits from the sale of ST-246® and related products. ST-246® is a novel smallpox antiviral agent being developed by SIGA for the treatment and prevention of morbidity and mortality associated with exposure to the causative agent of smallpox. 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"; "will"; "project"; "potential"; or similar statements are forward-looking statements. PharmAthene disclaims any intent or obligation to update these forward-looking statements other than as required by law. Risks and uncertainties include risk associated with our interest in ST-246®, 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, the award of government contracts to our competitors, unforeseen safety issues, challenges related to the development, scale-up, technology transfer, 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"). In particular, there is significant uncertainty regarding the level and timing of sales of ST-246® and when and whether it will be approved by the U.S. FDA and corresponding health agencies around the world. We cannot predict with certainty when SIGA will commence delivering any product or will begin recognizing profit on the sale thereof and there can be no assurance that any profits received by SIGA and paid to us will be significant. Furthermore, SIGA has filed an appeal with the Delaware Supreme Court challenging aspects of the Court of Chancery decision, and there can be no assurances that the decision will not be reversed or that the remedy will not otherwise be modified. In addition, we cannot predict how long the appeal will delay the receipt of payments, if any, from SIGA. Further, significant additional non-clinical animal studies, human clinical trials, and manufacturing development work remain to be completed for all of our product candidates, and with FDA's August 2012 clinical hold of SparVax it is unclear when, if ever, we can reinitiate human clinical trials for that product candidate. Copies of PharmAthene's public disclosure filings are available from its investor relations department and our website under the investor relations tab at www.PharmAthene.com.

-- Tables Follow --


 

 

 

PHARMATHENE, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS





September 30,


December 31,




2012


2011




(unaudited)









ASSETS




Current assets:






Cash and cash equivalents


$             14,726,328


$      11,236,771


Accounts receivable (billed)


1,606,241


4,424,442


Unbilled accounts receivable


3,682,311


3,021,208


Prepaid expenses and other current assets


363,742


830,585


Restricted cash


-


100,000

Total current assets


20,378,622


19,613,006







Property and equipment, net


553,081


788,666

Other long term assets and deferred costs


130,709


53,384

Goodwill


2,348,453


2,348,453

Total assets


$             23,410,865


$      22,803,509







LIABILITIES AND STOCKHOLDERS' EQUITY










Current liabilities:






Accounts payable


$               1,846,614


$        1,445,700


Accrued expenses and other liabilities


3,233,804


3,169,642


Current portion of long term debt


681,822


-


Short term debt


1,208,370


-

Total current liabilities


6,970,610


4,615,342







Other long term liabilities


579,707


449,709

Long term debt, less current portion


1,764,264


-

Derivative instruments


1,545,534


1,886,652

Total liabilities


10,860,115


6,951,703







Stockholders' equity:






Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,345,984  and 48,236,172 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively

4,835


4,824


Additional paid-in-capital


210,101,716


208,525,917


Accumulated other comprehensive (loss) income


(215,977)


1,010,522


Accumulated deficit


(197,339,824)


(193,689,457)

Total stockholders' equity


12,550,750


15,851,806

Total liabilities and stockholders' equity


$             23,410,865


$      22,803,509


 

 

 


PHARMATHENE, INC.


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS





Three months ended September 30,


Nine months ended September 30,




2012


2011


2012


2011











Revenue



$ 6,696,126


$ 5,260,057


$19,162,176


$18,026,619











Operating expenses:











Research and development



5,138,622


4,884,231


14,762,634


16,688,703


General and administrative



3,275,428


3,283,246


9,004,008


11,632,272


Depreciation and amortization



72,453


114,494


234,811


348,813

Total operating expenses



8,486,503


8,281,971


24,001,453


28,669,788











Loss from operations



(1,790,377)


(3,021,914)


(4,839,277)


(10,643,169)

Other income (expense):











Interest income



5,727


3,961


13,534


10,496


Interest expense



(112,529)


(9,932)


(226,910)


(40,540)


Realization of cumulative

translation adjustment



1,227,656


-


1,227,656


-


Change in fair value of

derivative instruments



508,971


2,898,869


341,118


6,075,555


Other income (expense)



(31,312)


95,520


22,122


50,892

Total other income (expense)



1,598,513


2,988,418


1,377,520


6,096,403











Net loss before provision

for income taxes



(191,864)


(33,496)


(3,461,757)


(4,546,766)


Provision for income taxes



(22,072)


-


(188,610)


-

Net loss



$ (213,936)


$   (33,496)


$(3,650,367)


$(4,546,766)











 

Basic and diluted net loss per share



$  (0.00)


$ (0.00)


$     (0.08)


$   (0.10)











 

         Weighted average shares used
         in calculation of basic and
         diluted net loss per share



48,345,984


48,194,035


48,314,058


47,041,027











 

 

 

SOURCE PharmAthene, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...