ANNAPOLIS, Md., May 13 PharmAthene, Inc.(Amex: PIP) a biodefense company developing medical countermeasures againstbiological and chemical threats, today reported financial results for thefirst quarter ended March 31, 2008.
"The first quarter was a particularly productive and exciting time for ourCompany. With the acquisition of Avecia's biodefense vaccines portfolio,completed on April 2, 2008, PharmAthene made substantial progress advancingour mission of becoming a premier biodefense company with industry-leadingcapabilities and a diversified portfolio of best-in-class, next generationproducts," commented David P. Wright, President and Chief Executive Officer.
"We have sought first to understand the needs of our customer -- thegovernment, and then identify and acquire the very best products to meet thoserequirements. By adhering to this strategy we have built a diversifiedbiodefense portfolio that includes novel, next generation rPA anthrax vaccines,an anthrax anti-toxin, Valortim(TM), a chemical nerve agent bioscavenger,Protexia(R), and a novel dual antigen plague vaccine. Many of these programsare poised to achieve important milestones this year, which have the potentialto create significant value for our stockholders," said Mr. Wright.
PharmAthene received revenues of $5.8 million for the three months endedMarch 31, 2008 compared to $3.0 million for the same period in 2007. Theserevenues consist primarily of contract and grant funding from the U.S.government for the development of the Company's chemical nerve agentprophylaxis, Protexia(R).
PharmAthene's research and development expenses were $5.9 million and$3.1 million for the three months ended March 31, 2008 and 2007, respectively.These expenses resulted primarily from research and development activitiesrelated to the development of Valortim(TM) for protection against andtreatment of inhalation anthrax, and the development of Protexia(R) fortreatment of nerve agent poisoning. Research and development expense increased$2.8 million for the three months ended March 31, 2008 as compared to the sameperiod in 2007, primarily as a result of increased process development andmanufacturing activities for both Valortim(TM) and Protexia(R), andemployee-related expenses including stock compensation expense.
General and administrative expenses for the Company were $4.7 million and$2.5 million respectively, for the three months ended March 31, 2008 and 2007.Expenses associated with general and administrative functions for the Companyincreased $2.2 million primarily due to increased employee costs, increasedstock compensation expense and additional costs associated with the Company'scompliance and legal functions.
PharmAthene's net loss for the first quarter of 2008 was $5.0 million or$0.23 per share.
As of March 31, 2008, available cash, cash equivalents and short terminvestments were $25.7 million, after giving effect to $20.0 million inrestricted cash.
Conference Call Information
PharmAthene management will host a conference call to discuss theCompany's first quarter 2008 financial results on Tuesday, May 13, 2008beginning at 4:30 p.m. E.T. The dial-in number within the United States is866-770-7129. The dial-in number for international callers is 617-213-8067.The participant passcode is 26177716.
Conference Call Replay
A replay of the conference call will be available for 30 days, beginningat approximately 6:30 p.m. E.T. May 13, 2008 until approximately 11:50 p.m.E.T. June 13, 2008. The dial-in number from within the United States is888-286-8010. For international callers, the dial-in number is 617-801-6888.The participant passcode is 15975144.
The conference call will also be webcast and can be accessed from thecompany's website at http://www.pharmathene.com. A link to the