PharmAthene first-quarter revenue decreases to $3.1 million

PharmAthene, Inc. (NYSE Amex: PIP), a biodefense company developing medical countermeasures against biological and chemical threats, today reported financial and operational results for the first quarter ended March 31, 2010.

For the first quarter of 2010, PharmAthene recognized revenue of $3.1 million compared to $5.5 million in the same period of 2009.  Revenues for the most recent quarter consisted primarily of contract funding from the U.S. government for the development of SparVax™ and Valortim™.  Revenue for the period ended March 31, 2010 decreased as compared to the same period in 2009 primarily as a result of the completion by the Company of the first phase of development activities in the third quarter of 2009 under the Company's existing contract with the Department of Defense (DoD) for Protexia®. The Company is currently awaiting a decision from the DoD as to whether it will fund the next phase of work under the existing contract.

Research and development expenses decreased to $5.0 million for the quarter ended March 31, 2010 as compared to $5.7 million in the same period last year.  These expenses resulted from research and development activities related to the Company's Valortim® and Protexia® programs as well as from activities related to the SparVax™, RypVax™ and third generation anthrax vaccine programs.  The reduction in research and development expenses is the net result of the completion of the first phase of development of PharmAthene's existing Protexia® development program in the third quarter of 2009, and the completion of activities related to the development of RypVax®, partially offset by an increase in costs incurred on our anthrax programs.

General and administrative expenses for the Company were $5.3 million for the quarter ended March 31, 2010 compared to $5.1 million in the same period in 2009.  

For the first quarter of 2010 PharmAthene's net loss attributable to common shareholders was $7.9 million or $0.28 per share, compared to $6.0 million or $0.23 per share in the same period of 2009.

As of March 31, 2010, the Company had cash and cash equivalents, short-term investments, and US government account receivables and unbilled receivables totaling approximately $17.1 million as compared to $22.8 million at December 31, 2009.   In April 2010, PharmAthene completed a public sale of approximately 1.7 million shares of the Company's common stock generating gross proceeds of $2.5 million.

PharmAthene's President and Interim Chief Executive Officer, Eric I. Richman, remarked "During the past several months we have strengthened our leadership structure and added important incremental functional expertise to our organization.  We were pleased to welcome Dr. Thomas Fuerst, a seasoned biotechnology leader and former government official with over 20 years of experience in the research, development and manufacturing of biological products.  Having served a key leadership and management role in establishing the organization known as the Biomedical Advanced Research and Development Authority (BARDA) with the Department of Health and Human Services, Tom's considerable expertise in all aspects of medical countermeasures development will be a tremendous asset to our organization."