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For the third quarter of 2008, PharmAthene recognized revenues of $10.7million compared to $3.4 million in the same period of 2007. For the ninemonths ended September 30, 2008 and 2007, the Company reported revenues of$27.4 million and $8.7 million, respectively. These revenues consistedprimarily of contract funding from the U.S. government for the development ofthe Company's medical countermeasures, Protexia(R), SparVax(TM) andRypVax(TM). As a result of the Avecia vaccines acquisition in the secondquarter of 2008, and particularly the acquired U.S. government contractssupporting the development of the rPA anthrax vaccines and RypVax(TM) plaguevaccine product candidates, revenues for the three and nine month periodsended September 30, 2008 were further boosted by $5.5 million and $8.9million, respectively.
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Research and development expenses were $9.4 million and $3.6 million forthe quarter ended September 30, 2008 and 2007, respectively. For the ninemonths ended September 30, 2008 and 2007, research and development expenseswere $26.5 million and $10.7 million, respectively. Expenses for the thirdquarter and nine months of 2008 resulted from research and developmentactivities related to programs for Valortim(R) and Protexia(R) as well asexpenses related to the Company's SparVax(TM) and RypVax(TM) programs, whichwere acquired in the second quarter of 2008. The increase in research anddevelopment expenses is primarily due to process development expenses,manufacturing activities and clinical development expenses related to theCompany'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 andadministrative expenses were $14.7 million and $8.6 million, respectively.General and administrative expenses increased as a result of additionalemployee costs due to the increase in headcount following the Aveciaacquisition, as well as increased travel expenses, non-cash stock compensationexpense, and increased legal and consulting expenses.
For the third quarter of 2008 PharmAthene's net loss attributable tocommon shareholders was $4.3 million or $0.20 per share, compared to $1.0million or $0.07 per share in the same period of 2007. For the nine monthsended September 30, 2008, the Company's net loss attributable to commonshareholders was $31.2 million or $1.41 per share, compared to $12.6 millionor $2.44 per share in the same period of 2007.
As of September 30, 2008, available cash, cash equivalents and short terminvestments were $13.2 million, excluding restricted cash totaling $14.5million and gross proceeds from the Panacea Biotec investment of $13.1 millionreceived in October 2008.
"The past several months have been an extraordinarily exciting time forPharmAthene as we continue to execute successfully against our objectives andachieve significant milestones in each of our biodefense programs," said DavidP. Wright, President and Chief Executive Officer.
"The next several months will be a pivotal time for our organization as wetransition from a development company to one potentially generating productrevenues if we are awarded a procurement contract for SparVax(TM)," continuedMr. Wright.
"We also strengthened our balance sheet in October 2008, adding grossproceeds of $13.1 million as part of a strategic investment by Panacea BiotecLtd. Together these achievements provide a solid foundation from which tocontinue to advance our business objectives and build value for ourshareholders," said Mr. Wright.
Conference Call and Webcast Information
PharmAthene management will host a conference call to discuss theCompany's third quarter and nine month results on November 13, 2008, at 4:30p.m., E.T. The dial-in number for U.S. callers is 800-798-2801 and forinternational callers is 617-614-6205. The participant passcode is 81927054.
A replay of the conference call will be available for 30 days, beginningat approximately 6:30 p.m. E.T. on November 13, 2008 until approximately 11:50p.m. E.T. December 13, 2008. The dial-in number for U.S. callers is888-286-8010, and for international callers is 617-801-6888. The participantpasscode is 74215682.
The webcast of the conference call can be accessed from the company'swebsite at http://www.pharmathene.com. A link to the webcast may be found onthe Investor Relations section of the website.
About PharmAthene, Inc.
PharmAthene was formed to meet the critical needs of the United States andits allies by developing and commercializing medical countermeasures againstbiological and chemical weapons. PharmAthene's lead product developmentprograms include:
Statement on Cautionary Factors
Except for the historical information presented herein, matters discussedmay constitute forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995 that are subject to certain risks anduncertainties that could cause actual results to differ materially from anyfuture results, performance or achievements expressed or implied by suchstatements. Statements that are not historical facts, including statementspreceded 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. PharmAthenedisclaims, however, any intent or obligation to update these forward-lookingstatements. Risks and uncertainties include risk associated with thereliability of the results of the studies relating to human safety andpossible adverse effects resulting from the administration of the Company'sproduct candidates, unexpected funding delays and/or reductions or eliminationof U.S. government funding for one or more of the Company's developmentprograms, including without limitation our bid related to SparVax(TM) underthe DHHS Request for Proposals for an Anthrax Recombinant Protective Antigen(rPA) Vaccine for the Strategic National Stockpile, the award of governmentcontracts to our competitors, unforeseen safety issues, challenges related tothe development, scale-up, and/or process validation of manufacturingprocesses for our product candidates, unexpected determinations that theseproduct candidates prove not to be effective and/or capable of being marketedas products, as well as risks detailed from time to time in PharmAthene'sForms 10-K and 10-Q under the caption "Risk Factors" and in its other reportsfiled with the U.S. Securities and Exchange Commission (the "SEC").
Copies of PharmAthene's public disclosure filings are available from itsinvestor relations department and our website under the investor relations tabat http://www.pharmathene.com.-- 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.
SOURCE PharmAthene, Inc.
