Welcome!

News Feed Item

PharmAthene Reports Year-End 2013 Financial And Operational Results

ANNAPOLIS, Md., March 11, 2014 /PRNewswire/ -- 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 year ended December 31, 2013.

"We remain focused on advancing our core biodefense programs, including addressing the SparVax® clinical hold which is our top priority," said Eric I. Richman, President and Chief Executive Officer.  "We have a clear path forward based on comments from the U.S. Food and Drug Administration (FDA), which includes manufacturing a new clinical lot for use in the proposed study. At the same time, we are looking forward to a decision from the Delaware Chancery Court in the next several months regarding our ongoing litigation with SIGA Technologies."

Linda L. Chang, Senior Vice President and Chief Financial Officer, commented, "Aside from one-time merger transaction costs in 2013, our cash usage continues to be manageable. We will continue to deploy our resources efficiently while we work to secure additional U.S. government funding and await the outcome of the SIGA litigation."

Year-End 2013 Financial Results

Revenue

For the year ended December 31, 2013, PharmAthene recognized revenue of $17.9 million, compared to $25.2 million in 2012. Revenue in 2013 and 2012 was derived from development contracts with the U.S. government for development of the Company's biodefense product candidates.  The reduction in revenue in 2013 reflects decreased development activity in the SparVax® anthrax vaccine program as a result of two FDA clinical holds imposed in August 2012 and December 2013, along with a temporary suspension of work as a result of the partial federal government shutdown, which occurred October 1st through October 16th, 2013. Consequently, revenue for the SparVax® program was lower in 2013 than in previous years.

Operating Expenses

Research and development expenses in 2013 were $15.3 million, compared to $19.5 million in 2012. Research and development expenses in 2013 declined primarily as a result of decreased activity in the SparVax® anthrax vaccine program. In addition, the Company received a vendor lawsuit settlement of $0.5 million, which was recorded as a reduction in research and development expenses. The reduction in costs for SparVax® were partially offset by increased costs for the bioscavenger program.

Expenses associated with general and administrative functions were $13.3 million in 2013, compared to $11.6 million in 2012. The increase in general and administrative costs was due to approximately $3.3 million in merger transaction costs associated with the proposed merger with Theraclone Sciences, Inc., which was terminated in December 2013.

Other Income

For the year ended December 31, 2013, PharmAthene recorded other expense of $0.8 million compared to other income of $1.5 million in 2012. During 2012, PharmAthene substantially liquidated PharmAthene Canada, Inc., and realized the $1.2 million gain from the cumulative translation adjustment in the current period earnings. 

Net Loss

For the year ended December 31, 2013, PharmAthene's net loss was $11.7 million, or $0.23 per share, compared to a net loss of $4.9 million, or $0.10 per share, for the year ended December 31, 2012. The increase in net loss is due to an increase in the loss from operations of $4.5 million, discussed above. PharmAthene also realized a $2.4 million decrease in other income for 2013 compared to 2012. The 2012 income included a gain of $1.2 million associated with the cumulative translation adjustment recorded to earnings for the substantial liquidation of PharmAthene Canada, Inc. There was also a $1.0 million change in the re-measurement of the fair value of the derivative instruments from 2012 to 2013.

Cash and Accounts Receivable

As of December 31, 2013, the Company had cash and cash equivalents totaling approximately $10.5 million, compared to $12.7 million as of December 31, 2012.  U.S. government billed and unbilled accounts receivable totaled approximately $3.6 million at December 31, 2013 compared to $6.5 million at December 31, 2012. The decrease in receivables is related to a reduction in product development activity during 2013. The sum total of cash and cash equivalents and U.S. government accounts receivable at December 31, 2013 was approximately $14.1 million, compared to $19.2 million at December 31, 2012.

Conference Call and Webcast Information

PharmAthene management will be hosting a conference call to discuss the Company's year-end 2013 financial and operational results. The call is scheduled to begin at 4:30 p.m. Eastern Time on Tuesday, March 11, 2014 and is expected to last approximately 30 minutes. The dial-in number within the United States is 866-318-8616. The dial-in number for international callers is 617-399-5135.  The participant passcode is 64114055.

A replay of the conference call will be available beginning at approximately 8:30 p.m. Eastern Time on March 11, 2014 until approximately 11:59 p.m. Eastern Time on April 11, 2014.  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 76960661.

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

PharmAthene is a leading biodefense company engaged in the development and commercialization of next generation medical countermeasures against biological and chemical threats. PharmAthene's current biodefense portfolio includes the following product candidates:

  • SparVax® - a next generation recombinant protective antigen (rPA) anthrax vaccine
  • rBChE bioscavenger - a medical countermeasure for nerve agent poisoning by organophosphorous compounds, including nerve gases and pesticides
  • Valortim® - a fully human monoclonal antibody for the prevention and treatment of anthrax infection

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.  

Forward-Looking Statement Disclaimer
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 "will"; "potential"; "believe"; "anticipate"; "look forward"; "intend"; "plan"; "expect"; "estimate"; "could"; "may"; "should"; or similar statements are forward-looking statements. Such statements include, but are not limited to those referring to the outcome of the SIGA litigation and our ability to deploy our resources.  PharmAthene disclaims any intent or obligation to update these forward-looking statements.  Risks and uncertainties include, among others, risks associated with the reliability of the results of the studies relating to human safety and possible adverse effects resulting from 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; awards of government contracts to our competitors; unforeseen safety issues; 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 Form 10-K and quarterly reports on Form 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 Arestvyr™ and whether and when it will be approved by the U.S. FDA and corresponding health agencies around the world. PharmAthene cannot predict with certainty if or when SIGA will begin recognizing profit on the sale thereof and there can be no assurance that any profits received by SIGA will be significant. In its May 2013 decision, the Delaware Supreme Court reversed the remedy ordered by the Delaware Court of Chancery and remanded the issue of a remedy back to the trial court for reconsideration in light of the Delaware Supreme Court's opinion.  As a result, there can be no assurance that the Delaware Chancery Court will issue a remedy that provides PharmAthene with a financial interest in Arestvyr™ and related products or any remedy.  In addition, significant additional research work, non-clinical animal studies, clinical trials, and manufacturing development work remains to be done with respect to PharmAthene's product candidates. At this point, there can be no assurance that any of these product candidates will be shown to be safe and effective and approved by regulatory authorities for use in humans.   Copies of PharmAthene's public disclosure filings are available from its investor relations department and its website under the investor relations tab at www.pharmathene.com.  

 

PHARMATHENE, INC.

CONSOLIDATED BALANCE SHEETS








December 31,



2013


2012






ASSETS




Current assets:





Cash and cash equivalents

$                10,480,979


$                12,701,517


Accounts receivable (billed)

1,427,113


2,432,641


Unbilled accounts receivable

2,199,525


4,114,442


Prepaid expenses and other current assets

231,491


547,245

Total current assets

14,339,108


19,795,845






Property and equipment, net

386,068


483,976

Other long-term assets and deferred costs

65,660


113,130

Goodwill

2,348,453


2,348,453

Total assets

$                17,139,289


$                22,741,404






LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:





Accounts payable

$                  1,128,172


$                  1,697,280


Accrued expenses and other liabilities

3,182,687


2,328,877


Deferred revenue

341,723


1,381,755


Short-term debt

1,091,740


1,330,507


Current portion of derivative instruments

51,663


-


Current portion of long-term debt

999,996


749,997

Total current liabilities

6,795,981


7,488,416






Other long-term liabilities

588,745


579,427

Long-term debt, less current portion

730,279


1,704,108

Derivative instruments, less current portion

1,688,572


1,295,613

Total liabilities

9,803,577


11,067,564






Stockholders' equity:





Common stock, $0.0001 par value; 100,000,000 shares authorized; 52,304,246  and 48,352,651 shares issued and outstanding at December 31, 2013 and 2012, respectively

5,230


4,835


Additional paid-in-capital

217,877,117


210,495,905


Accumulated other comprehensive loss

(218,710)


(217,328)


Accumulated deficit

(210,327,925)


(198,609,572)

Total stockholders' equity

7,335,712


11,673,840

Total liabilities and stockholders' equity

$                17,139,289


$                22,741,404







 

PHARMATHENE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS












Year Ended December 31,




2013


2012


2011









Contract Revenue

$

17,912,607

$

25,175,887

$

24,266,274









Operating expenses:








Research and development


15,290,142


19,509,629


21,219,853


General and administrative


13,279,186


11,628,732


14,311,079


Depreciation 


182,487


303,916


461,073

Total operating expenses


28,751,815


31,442,277


35,992,005









Loss from operations

$

(10,839,208)

$

(6,266,390)

$

(11,725,731)

Other income (expense):








Interest income


2,575


17,808


16,660


Interest expense


(369,281)


(342,561)


(54,573)


Gain on the sale of assets held for sale


-


-


781,760


Realization of cumulative translation adjustment 


-


1,227,656


-


Change in fair value of derivative instruments


(444,622)


591,039


7,144,983


Other income (expense)


(6,071)


47,862


39,328

Total other income (expense)


(817,399)


1,541,804


7,928,158









Net loss before provision for income taxes


(11,656,607)


(4,724,586)


(3,797,573)


Provision for income taxes


(61,746)


(195,529)


-

Net Loss

$

(11,718,353)

$

(4,920,115)

$

(3,797,573)









Basic and diluted net loss per share

$

(0.23)

$

(0.10)

$

(0.08)

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


50,659,116


48,323,067


47,331,763










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.

Latest Stories
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration ...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...