Pharming Publishes Financial Report First Half Year 2011
Leiden, The Netherlands, August 4, 2011. Biotech company Pharming Group NV (“Pharming” or “the Company”) (NYSE Euronext: PHARM) today published its financial report for the first half year ended June 30, 2011.
HIGHLIGHTS
•Revenues and other income from continuing operations increased to €1.4 million (H1 2010: €0.1 million) due to recognition of license fee income and product sales following launch of Ruconest® in December 2010.
•Operating costs from continuing operations decreased to €9.1 million (H1 2010: €10.1 million). Operating cash outflows in the first half of 2011 amounted to €8.9 million compared to €10.0 million (H1 2010) of which €8.4 million in H1 2010 was from continuing operations and €1.6 million from discontinued operations. The €0.5 million net increase in cash outflow from continued operations is explained by €2.9 million less cash received from commercial partners, primarily related to a €3.0 million second quarter 2010 upfront payment from SOBI upon entering into a distribution agreement for Rhucin®, and the deferred payment of 2009 liabilities to early 2010 as a result of a limited cash position at year end 2009.
•Total net loss decreased to €8.0 million (H1 2010: €28.0 million).
•In the six months to June 30, 2011, net cash and cash equivalents, including restricted cash, increased to €11.0 million (December 31, 2010: €10.5 million). The €0.5 million increase largely reflects the net cash inflows from financing activities of €10.2 million and net operating cash outflows of €8.9 million. Post period we raised €3.2 million gross through a private placement with specialist investors.
•Roll-out of Ruconest® across Europe is progressing well and we continue to make progress with the US development. We and our partner, Santarus, are finalizing discussions with the FDA on the Phase III protocol to support the submission of a Biologics License Application. As previously discussed, changes to the study design will include a modification to the way the primary endpoint will be assessed and an increase in the number of study patients from 50 to approximately 75. We continue to expect that the Phase III study will be completed by the third quarter of 2012, which is within our original time estimate of 12 to 18 months. If approved, Rhucin® will be the first recombinant C1 inhibitor on the market, and could offer an attractive therapeutic option for patients with HAE.
•Agreement signed with MegaPharm for the commercialization of Ruconest® in Israel represents first step in global expansion of C1 Inhibitor franchise.
Chief Executive Officer, Sijmen de Vries, commented: “Throughout the first half of 2011 we have been focusing on addressing the FDA’s refusal to file letter for Rhucin® and we continue to make progress. Concurrently, we have continued to seek and evaluate new sources of value creation and financing for the Company, including additional partnerships for our C1 inhibitor franchise and potential deals which utilise our validated, proprietary and low cost production platform. We were pleased to complete a private placement post the period against a backdrop of difficult market conditions. This raise significantly extends our runway into 2012.”
(A conference call for analysts and press will be held at 11:00