LEIDEN, NETHERLANDS--(Marketwire - April 17, 2009) - Biotech company Pharming Group NV ("Pharming" or "the Company") (Euronext: PHARM) announced today its financial first quarter (Q1) results for the period ended March 31, 2009.
Key Financial Developments
* Cash position of EUR 16.0 million (including marketable securities) at March 31, 2009 (EUR 23.5 million at December 31, 2008)
* Equity at March 31, 2009 of EUR 7.1 million (EUR 12.5 million at December 31, 2008)
* Net cash of EUR 6.4 million used for operating activities in Q1 2009 compared to EUR 5.5 million in Q1 2008
* Revenues of EUR 0.1 million (EUR 0.1 million in Q1 2008)
* Operating costs EUR 6.6 million in Q1 2009 (EUR 5.3 million in Q1 2008)
* Total net loss of EUR 6.2 million in Q1 2009 (EUR 2.9 million in Q1 2008)
Pharming's cash position including marketable securities and
restricted cash was EUR 16.0 million at March 31, 2009 in comparison to
EUR 23.5 million at the end of 2008. Cash used in operating activities
amounted to EUR 6.4 million. The EUR 0.9 million increase in use of cash
for operating activities compared to Q1 of 2008 (EUR 5.5 million)
mainly related to the Company's Rhucin® efforts in the US, Europe and
other territories. General & administrative costs remained fairly
constant whereas depreciation and amortization charges slightly
decreased due to the effect of the year end 2008 non-cash impairment
charges on the amortization basis of intangible assets.
Early 2009, bond settlements of EUR 5.1 million nominal value took place with two individual parties through payment of 20% of the nominal value in cash plus the remaining 80% through conversion into shares at the conversion price of EUR 2.64 per share. Since these settlements were executed at a total value well below the nominal value of the bonds a (non-cash) profit of EUR 1.6 million was posted to the income statement. Revenues of EUR 0.1 million were generated through government grants and in line with results from previous quarters. Compared to a net loss of EUR 2.9 million in the first quarter of 2008, the net result in Q1 2009 increased to EUR 6.2 million. However, the Q1 2008 net loss was highly affected by a one-time fair value profit of EUR 4.0 million on the derivative portion of convertible bonds.
Total equity decreased to EUR 7.1 million due to the loss incurred during the quarter, partly offset by the partial conversion of outstanding bonds into shares. As a result of these conversions, the number of outstanding shares increased from 97.4 million at year-end 2008 to 99.0 million at March 31, 2009.
Dr. Sijmen de Vries, Chief Executive Officer, commented: "With the ongoing development of our products on track, we look back at a quarter that developed in line with expectations. The above-mentioned restructuring of our convertible bonds will reduce future interest payments. Also, through the recently announced EUR 20 million stand-by equity line with Yorkville Advisors, we will now be able to strengthen our financial position and reduce our financial risk profile significantly. Notwithstanding the above, further improvement of our cash position by attracting new financing remains a top priority for management. Several types of transactions including (convertible) debt, project-specific financing and licensing deals are currently under consideration and discussion. In addition, we anticipate to receive milestone payments from our partnering agreements in the course of this year, which should keep the Company securely financed into 2010."
About Pharming Group NV
Pharming Group NV is developing innovative products for the treatment of genetic disorders, ageing diseases, specialty products for surgical indications, intermediates for various applications and nutritional products. Pharming has two products in late stage development - Rhucin® for Hereditary Angioedema and human lactoferrin for use in food products. The advanced technologies of the Company include innovative platforms for the production of protein therapeutics, technology and processes for the purification and formulation of these products, as well as technology in the field of DNA repair (via DNage). Additional information is available on the Pharming website, www.pharming.com.
This press release contains forward looking statements that involve
known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the Company
to be materially different from the results, performance or
achievements expressed or implied by these forward looking
statements.
Contact:
Sijmen de Vries, Pharming Group NV, T: +31 (0)71 52 47 400
The full report including tables can be downloaded from the following link:
Q1 Results 2009: http://hugin.info/132866/R/1305779/299949.pdf
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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