Full Press Release Details
Phone: (410) 269-2610
PHARMATHENE REPORTS SECOND QUARTER 2013
FINANCIAL AND OPERATIONAL RESULTS
ANNAPOLIS, MD - August 7, 2013
- PharmAthene, Inc. (NYSE MKT: PIP), a biodefense company developing medical countermeasures against biological and
chemical threats, today reported its financial and operational results for the second quarter of 2013.
"The second quarter was a very eventful
and productive period for PharmAthene," said Eric I. Richman, President and Chief Executive Officer. "We were pleased
to receive notification from the U.S. Food and Drug Administration (FDA) of its decision to lift the clinical hold on our proposed
Phase 2 SparVax clinical trial. We are currently in discussions with our partner, the Biomedical Advanced Research
and Development Authority (BARDA), regarding the details of the study, and plan to initiate the Phase 2 clinical trial as soon
"We also received very positive news
from the Delaware Supreme Court. In its opinion issued May 24, 2013, the high court confirmed that agreements to negotiate in good
faith are enforceable under Delaware Law and ruled that SIGA was liable for breach of contract. Most importantly, the high Court
confirmed that under breach of contract of a Type II preliminary agreement, expectancy damages are an available and appropriate
remedy for a plaintiff. We are very pleased by the Court's ruling and have subsequently filed a motion to re-open the record
to introduce relevant new facts for the Court's consideration."
On August 1, 2013, PharmAthene announced
the signing of a definitive merger agreement for the merger of PharmAthene and Theraclone Sciences in an all-stock transaction.
The combined company will be a diversified biologics company with four clinical-stage product candidates targeting high-value commercial
and government markets. The merged company will combine vaccine and human monoclonal antibody expertise with a focus on infectious
diseases and oncology, and will feature a robust discovery pipeline with four pre-clinical programs and multiple discovery candidates,
along with three pharmaceutical-partnered products.
Second Quarter 2013 Financial Results
For the second quarter of 2013, PharmAthene
recognized revenue of $4.3 million, compared to $6.3 million for the same period in 2012. Revenue in the second quarter of 2013
was derived from development contracts with the U.S. government for the Company's biodefense product candidates.
Revenue for the SparVax program
in the second quarter of 2013 was $3.5 million compared to $6.1 million in the same period in 2012. The change in revenue for the
three months ended June 30, 2013, resulted primarily from a reduction in certain contract activities and milestone revenue during
Revenue for the rBChE bioscavenger program
in the second quarter of 2013 was approximately $0.8 million compared to $0.2 million for the same period in 2012.
The increase was primarily due to additional development activity in preparation to begin non-clinical studies.
Research and development expenses were
$3.4 million in the second quarter of 2013, compared to $4.9 million in the second quarter of 2012. The difference in the current
period resulted primarily from the postponement of certain activities under our SparVax contract and settlement
of a lawsuit filed against a vendor, partially offset by increased costs in our rBChE bioscavenger program.
Expenses associated with general and administrative
functions were $2.3 million in the second quarter of 2013 compared to $2.8 million in the second quarter of 2012. The decrease
in general and administrative expenses in the second quarter of 2013 was due primarily to reduced labor costs and professional
and consulting and legal fees.
For the second quarter of 2013, PharmAthene's
net loss was $1.2 million, or $0.02 per share, compared to a net loss of $0.8 million, or $0.02 per share during the same period
in 2012. The increase in net loss is due to the factors mentioned above as well as a $0.5 million decrease in the unrealized gain
on the change in fair value of our derivative instruments which was largely the result of
the change in the closing market price of our common stock.
Cash, Cash Equivalents and Accounts
As of June 30, 2013, the Company had cash
and cash equivalents totaling approximately $15.8 million, compared to $12.7 million as of December 31, 2012. U.S. government billed
and unbilled accounts receivable totaled approximately $5.2 million at June 30, 2013 compared to $6.5 million at December 31, 2012.
The sum total of cash and cash equivalents and U.S. government accounts receivable at June 30, 2013 was approximately $21.0 million,
compared to $19.2 million as of December 31, 2012.
Conference Call and Webcast Information
PharmAthene management will be hosting
a conference call to discuss the Company's second quarter 2013 financial and operational results. The call is scheduled to
begin at 4:30 pm Eastern Time on Wednesday, August 7, 2013 and is expected to last approximately 30 minutes. The dial-in number
within the United States is 866-515-2914. The dial-in number for international callers is 617-399-5128. The participant
passcode is 97133553.
A replay of the conference call will be
available beginning at approximately 6:30 pm Eastern Time on August 7, 2013 until approximately 11:59 p.m. Eastern Time on September
6, 2013. 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 79695228.
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.
Important Additional Information about
This communication is being made in respect
of the proposed merger involving Theraclone Sciences, Inc. and PharmAthene, Inc. On August 1, 2013, PharmAthene filed with the
SEC a current report on Form 8-K, which includes the merger agreement and related documents. In addition, PharmAthene intends to
file a registration statement on Form S-4 with the SEC, which will contain a joint proxy statement/prospectus and other relevant
materials, and plans to file with the SEC other documents regarding the proposed transaction. The final joint proxy statement/prospectus
will be sent to the stockholders of PharmAthene in connection with the special meeting of stockholders to be held to vote on matters
relating to the proposed transaction. The joint proxy statement/prospectus will contain information about PharmAthene, Theraclone,
the proposed merger, and related matters. STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ANY
AMENDMENTS OR SUPPLEMENTS THERETO) AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE,
AS THEY WILL CONTAIN IMPORTANT INFORMATION THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING A DECISION ABOUT THE MERGER AND RELATED
MATTERS. In addition to receiving the joint proxy statement/prospectus and proxy card by mail, stockholders will also be able
to obtain the joint proxy statement/prospectus, as well as other filings containing information about PharmAthene, without charge,
from the SEC's website (http://www.sec.gov) or, without charge, by contacting Stacey Jurchison at PharmAthene at (410) 269-2610.
This announcement is neither a solicitation of proxy, an offer to purchase, nor a solicitation of an offer to sell shares of PharmAthene.
Participants in Solicitation
PharmAthene and its executive officers
and directors may be deemed to be participants in the solicitation of proxies from PharmAthene's stockholders with respect
to the matters relating to the proposed merger. Theraclone may also be deemed a participant in such solicitation. Information regarding
PharmAthene's executive officers and directors is available in Amendment No. 1 to PharmAthene's proxy statement on
Schedule 14A, filed with the SEC on May 9, 2013. Information regarding any interest that PharmAthene, Theraclone or any of the
executive officers or directors of PharmAthene or Theraclone may have in the transaction with Theraclone will be set forth in the
joint proxy statement/prospectus that PharmAthene intends to file with the SEC in connection with its stockholder vote on matters
relating to the proposed merger. Stockholders will be able to obtain this information by reading the joint proxy statement/prospectus
when it becomes available.
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 current biodefense portfolio includes the following product candidates:
In addition, in May 2013, the Delaware
Supreme Court issued its ruling on the appeal in our litigation with SIGA Technologies, affirming the Court of Chancery's
finding that SIGA was liable for breach of contract, reversing its finding of promissory estoppel, and remanding the case back
to the Court of Chancery to reconsider the appropriate remedy and award of attorney's fees and expert witness costs in light of
the Supreme Court's opinion. For more information about PharmAthene, please visit www.PharmAthene.com.
PharmAthene Forward-Looking Statement