ANNAPOLIS, Md., Nov. 4,
2016 /PRNewswire/ -- PharmAthene, Inc. (NYSE MKT: PIP), a
biodefense company developing medical countermeasures against
anthrax, today reported its financial and operational results for
the third quarter of 2016.
PharmAthene received $122.5
million from SIGA Technologies, Inc. during the nine months
ended September 30, 2016, comprised
of principle payments of $115 million
(which amount is creditable against final satisfaction of the
judgment in PharmAthene's favor and is not refundable), and
$7.5 million of payments calculated
by SIGA as interest on the judgment. On October 6, 2016, SIGA paid PharmAthene an
additional $10 million. Following
this payment, $83.7 million remains
due under the total award amount of approximately $208.7 million.
On July 20, 2016, PharmAthene and
SIGA filed a Joint Motion which sought approval of amendments to
SIGA's Reorganization Plan to extend the deadline for SIGA to
satisfy the judgment owed to PharmAthene from October 19, 2016 to November 30, 2016, conditioned on SIGA's payment
to PharmAthene of $100 million in
aggregate (including prior payments of principal and interest) on
or prior to October 19, 2016, such
amount to be applied against PharmAthene's judgment. Interest on
any unpaid balance will continue to accrue at 8.75% per year and be
paid monthly to PharmAthene by SIGA. The Joint Motion was approved
by the Bankruptcy Court on August 18,
2016.
PharmAthene anticipates that eventual receipt of the full award
from SIGA could generate substantial taxable income, which
PharmAthene expects to partially offset through its tax NOL carry
forwards. The Company filed its tax returns during the third
quarter of 2016 for the tax year ended December 31, 2015. On that return, it recognized
a worthless stock deduction and bad debt deduction related to its
investment in its UK subsidiary of approximately $13.9 million and $4.0
million, respectively. The NOL reported for 2015 was
approximately $21.5 million which,
when added to the losses carried forward from previous years, gives
the Company approximately $176.1
million in cumulative NOLs available to offset the income
received related to the SIGA settlement. As of the end of the third
quarter of 2016, the Company estimates that it has used
approximately $114 million of the
$176.1 million in cumulative
NOLs.
For the three months ended September 30,
2016, PharmAthene recognized revenue of $1.0 million compared to $1.2 million for the corresponding period in
2015. This revenue was recognized under the Company's
contract with the NIAID for the development of a next generation
lyophilized anthrax vaccine.
Research and development expenses in the third quarter of 2016
and 2015 were $1.2 million and
$1.1 million, respectively. These
expenses resulted from research and development activities related
primarily to the Company's anthrax vaccine programs.
Expenses associated with general and administrative functions
were $3.7 million in the third
quarter of 2016 compared to $1.2
million in the third quarter of 2015. The $2.5 million increase over the corresponding
period in 2015 was primarily due to an increase in stock
compensation expense and expenses related to the preparation of the
proposal and protest to DHHS in response to the request for a next
generation anthrax vaccine.
For the third quarter of 2016, the Company's net income was
$109.2 million, or $1.67 per diluted share, compared to net loss of
$1.3 million, or $(0.02) per diluted share, for the corresponding
period in 2015.
Cash and short term investments at the end of the third quarter
of 2016 were $135.9 million compared
to a cash balance of $15.6 million at
the end of fiscal year 2015.
If SIGA pays PharmAthene cash in full on the judgment, and
barring any unexpected material events, PharmAthene intends to
distribute at least 90% of the after tax net cash proceeds of such
payment to its shareholders. The timing and form of such a
potential distribution will depend upon PharmAthene's analysis of
its current situation, applicable corporate statutes relating to
distributions, and the economic consequences to its
shareholders.
About PharmAthene
PharmAthene is a biodefense company engaged in the development
of next generation medical countermeasures against biological
threats. The Company's development portfolio includes one next
generation anthrax vaccine that is intended to improve protection
while having favorable dosage and storage requirements compared to
other anthrax vaccines.
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 "potential"; "believe"; "anticipate"; "intend"; "plan";
"expect"; "estimate"; "could"; "may"; "should"; "will"; "project";
or similar statements are forward-looking statements. Risks and
uncertainties include risks associated with our ability to fully
collect a money judgment from SIGA; risks relating to the timing of
payments, if any, under the SIGA litigation; our ability to make
distributions of a substantial portion of the cash proceeds we may
receive from SIGA; the timing, amount and form of such a
distribution; risks relating to our continuing ability to recognize
cost reductions; risks associated with the amount of taxable income
actually generated upon the receipt of a full award from SIGA;
risks associated with the availability of our NOLs, the amounts of
available NOLs and any increases thereof and preservation of such
NOLs; and other risks detailed from time to time in PharmAthene's
Forms 10-K and 10-Q under the caption "Risk Factors" and in its
other reports filed with the U.S. Securities and Exchange
Commission. PharmAthene disclaims any intent or obligation to
update these forward-looking statements other than as required by
law.
Copies of PharmAthene's public disclosure filings are available
on our website under the investor relations tab at
www.PharmAthene.com.
Tables Follow
|
PHARMATHENE,
INC.
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
69,106,979
|
|
$
15,569,813
|
|
Short-term
investments
|
|
66,841,690
|
|
-
|
|
Billed accounts
receivable
|
|
665,659
|
|
511,994
|
|
Unbilled accounts
receivable
|
|
912,126
|
|
963,345
|
|
Prepaid expenses and
other current assets
|
|
509,857
|
|
181,714
|
|
Total current
assets
|
|
138,036,311
|
|
17,226,866
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
153,823
|
|
233,694
|
|
Other long-term
assets and deferred costs
|
|
-
|
|
53,384
|
|
Goodwill
|
|
2,348,453
|
|
2,348,453
|
|
Total
assets
|
|
$
140,538,587
|
|
$
19,862,397
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
614,543
|
|
$
521,122
|
|
Accrued expenses and
other liabilities
|
|
1,778,193
|
|
1,248,708
|
|
Accrued restructuring
expenses - current
|
|
173,301
|
|
381,950
|
|
Other short-term
liabilities
|
|
11,588
|
|
11,250
|
|
Current portion of
derivative instruments
|
|
1,150,845
|
|
16,411
|
|
Total current
liabilities
|
|
3,728,470
|
|
2,179,441
|
|
|
|
|
|
|
|
Accrued restructuring
expenses, less current portion
|
|
-
|
|
108,641
|
|
Other long-term
liabilities
|
|
427,077
|
|
433,407
|
|
Derivative
instruments, less current portion
|
|
-
|
|
491,791
|
|
Total
liabilities
|
|
4,155,547
|
|
3,213,280
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.0001
par value; 100,000,000 shares authorized;
66,423,033 and 64,382,086 shares issued and outstanding at
September 30, 2016 and December 31, 2015, respectively
|
6,642
|
|
6,438
|
|
Additional
paid-in-capital
|
|
244,035,496
|
|
240,366,704
|
|
Accumulated other
comprehensive income
|
|
12,346
|
|
-
|
|
Accumulated
deficit
|
|
(107,671,444)
|
|
(223,724,025)
|
|
Total stockholders'
equity
|
|
136,383,040
|
|
16,649,117
|
|
Total liabilities and
stockholders' equity
|
|
$
140,538,587
|
|
$
19,862,397
|
|
|
|
|
|
|
|
PHARMATHENE,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Contract
revenue
|
|
$
993,885
|
|
$
1,155,839
|
|
$
4,110,833
|
|
$
9,374,155
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
1,236,692
|
|
1,125,865
|
|
3,409,005
|
|
3,962,019
|
|
General and
administrative
|
3,714,747
|
|
1,231,035
|
|
6,343,426
|
|
5,246,396
|
|
Restructuring
expense
|
-
|
|
422,482
|
|
-
|
|
2,519,273
|
|
Depreciation
|
|
32,235
|
|
35,005
|
|
110,371
|
|
108,798
|
|
Total operating
expenses
|
|
4,983,674
|
|
2,814,387
|
|
9,862,802
|
|
11,836,486
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
$
(3,989,789)
|
|
$
(1,658,548)
|
|
$
(5,751,969)
|
|
$
(2,462,331)
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
25,186
|
|
(9,888)
|
|
25,614
|
|
(48,492)
|
|
Realization of
cumulative translation adjustment
|
-
|
|
-
|
|
-
|
|
(229,192)
|
|
Change in fair value
of derivative instruments
|
(352,057)
|
|
359,796
|
|
(642,643)
|
|
577,426
|
|
Other income -
litigation
|
|
113,566,451
|
|
-
|
|
122,461,489
|
|
-
|
|
Other income
(expense)
|
|
659
|
|
(691)
|
|
6,400
|
|
6,594
|
|
Total other
income
|
|
113,240,239
|
|
349,217
|
|
121,850,860
|
|
306,336
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
109,250,450
|
|
(1,309,331)
|
|
116,098,891
|
|
(2,155,995)
|
|
Income tax
provision
|
|
(15,437)
|
|
(15,437)
|
|
(46,310)
|
|
(46,310)
|
|
Net income
(loss)
|
|
$
109,235,013
|
|
$
(1,324,768)
|
|
$
116,052,581
|
|
$
(2,202,305)
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
$
1.68
|
|
$
(0.02)
|
|
$
1.79
|
|
$
(0.03)
|
|
Diluted net income
(loss) per share
|
$
1.67
|
|
$
(0.02)
|
|
$
1.79
|
|
$
(0.03)
|
|
Weighted average
shares used in calculation of
basic net income (loss) per share
|
65,001,584
|
|
64,187,618
|
|
64,715,647
|
|
63,858,500
|
|
Weighted average
shares used in calculation of
diluted net income (loss) per share
|
65,814,765
|
|
64,187,618
|
|
65,322,158
|
|
63,858,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pharmathene-reports-third-quarter-2016-financial-and-operational-results-300357842.html
SOURCE PharmAthene, Inc.