Full Press Release Details
Phone: (410) 269-2610
PHARMATHENE SECURES $7.5 MILLION CREDIT
GE CAPITAL HEALTHCARE FINANCIAL SERVICES
ANNAPOLIS, MD - April 3, 2012
- PharmAthene, Inc. (NYSE Amex: PIP) today announced that it has secured $7.5 million in senior secured credit facilities
from GE Capital Healthcare Financial Services consisting of a $2.5 million term loan and a revolving line of credit of up to $5
Linda L. Chang, Senior Vice President
and Chief Financial Officer, commented, "We are very pleased to partner with GE Capital - a recognized leader in
healthcare financing. This financing further strengthens our balance sheet and provides us with increased flexibility to
manage our working capital requirements."
2012 monthly cash burn is less than $500,000 per month based on currently projected activities on our contracts," Ms. Chang
continued. "Given that PharmAthene had $19.2 million in cash and cash equivalents, short term investments, and net receivables
as of December 31, 2011, this financing provides an additional liquidity cushion until the time in 2013 when we anticipate
receiving final resolution of the litigation with SIGA Technologies."
For a summary of the terms of the
credit facility, see the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date hereof.
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 - a second generation recombinant protective antigen
(rPA) anthrax vaccine
Valortim - a fully human monoclonal antibody for the
prevention and treatment of anthrax infection
Recombinant BChE - a novel bioscavenger for the prevention and treatment
of morbidity and mortality associated with exposure to chemical nerve agents
In addition, pursuant to an opinion issued
September 22, 2011, from the Delaware Court of Chancery, PharmAthene is entitled to 50% of the net profits over 10 years from all
sales of SIGA Technologies' ST-246, 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, and related products, once
SIGA receives the first $40 million in net profits from sales of ST-246. For more information about PharmAthene, please visit www.PharmAthene.com.
About GE Capital, Healthcare Financial
With in-depth industry knowledge and expertise, GE Capital,
Healthcare Financial Services has provided more than $60 billion in financing over ten years to companies
in over 40 healthcare sectors including senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical
devices. Our team of professionals creates business and financial solutions tailored to meet the individual needs of our customers.
For more information, visit gecapital.com/healthcare.
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 proceeded 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 the reliability of the results of the studies relating to human safety
and possible adverse effects resulting from the administration of the PharmAthene's product candidates, unexpected funding
delays and/or reductions or elimination of U.S. government funding for one or more of the PharmAthene'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. 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. Further, we cannot predict with certainty when SIGA Technologies, Inc. ("SIGA") will commence delivering any
product or will begin recognizing profit on the sale of ST-246 and there can be no assurance that any profits received by SIGA
and paid to PharmAthene will be significant. We note that SIGA has publicly stated it intends to appeal 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,
to the extent that there is an appeal, we cannot predict how long such appeal will delay the receipt of payments, if any, from
SIGA. In addition, significant non-clinical animal studies, human clinical trials, and manufacturing development work remain to
be completed for SparVax , Valortim and our rBChE products. 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.