Pharming announces 2009 Results
(Thomson Reuters ONE) -
Leiden, The Netherlands, February 18, 2010. Biotech company Pharming Group NV
("Pharming" or "the Company") (NYSE Euronext: PHARM) announced today its
preliminary results for the year ended December 31, 2009.
Key financial developments
* ?20.0 million Standby Equity Distribution Agreement ("SEDA") signed with YA
Global Master SPV LTD ("YA Global") in April 2009, plus a ?10.0 million
extension in October 2009. Total financing under the SEDA received in 2009
of ?6.6 million, with another ?23.4 million available to date;
* ?70.0 million convertible bonds (issued in 2007) reduced to ?10.9 million at
December 31, 2009 from ?49.9 million at year end 2008;
* Decrease of operational costs from ?30.1 million in 2008 to ?28.9 million in
2009 as a result of ?4.0 million lower non-cash impairment charges (?4.2
million in 2008; ?0.2 million in 2009), which was offset with a ?2.4 million
increase of research and development costs driven by the submission of the
EU Marketing Authorization Application for Rhucin® in September 2009,
intensified efforts for the Rhucin program in North America and the clinical
development of Prodarsan®;
* Net loss in 2009 of ?32.1 million as compared to ?26.2 million in 2008
primarily caused by the effect of a non-cash derivative profit of ?4.9
million in 2008 and ?1.6 million lower net interest income on cash and
marketable securities.
"2009 was a challenging year for Pharming in which we have made significant
progress on a number of fronts, for example by clearing the vast majority of our
convertible debt and in creating a decent financial platform through a SEDA
withYA Global and a short-term convertible debt financing of ?7.5 million
(secured just after year end 2009) from which we are confident we can continue
to bring Rhucin through a successful regulatory review process," said Dr. Sijmen
de Vries, Chief Executive Officer of Pharming. "2010 is set to be a
transformational year for Pharming as we remain confident in securing European
approval for Rhucin and remain on track for BLA filing in the USA. We are also
in discussions with a number of parties for commercialisation of Rhucin rights
in major world markets and we anticipate the conclusion of commercial
partnerships and additional financing in the first half of this year."
Outlook 2010
* Opinion on Marketing Authorization Application for Rhucin from the European
Medicines Agency in HY2
* Clarity on the filing and review process for Rhucin in the USA for the
treatment of acute attacks of Hereditary Angioedema in HY1
* Initiation clinical development of rhC1INH for applications in the field of
transplant indications in 2010
* Start clinical Phase II/III studies with Prodarsan in Cockayne Syndrome
patients expected end of 2010
* Commercialisation agreement(s) for Rhucin in HY1 2010.
* Further improvement of the financial position by (combinations of)
project-specific financing, licensing deals, loans and equity transactions
Key financial data (in ?million, except per share data) (unaudited)
Year Year
ended ended
December 31, December 31,
2009 2008
Statement of financial position:
Non-current assets (excluding restricted cash) 27.1 31.0
Cash and marketable securities, net of bank 2.3 23.5
overdrafts (*)
Other current assets 12.6 12.6
Total assets 42.0 67.1
Convertible bonds 9.5 35.7
Other liabilities 19.2 18.9
Total equity 13.3 12.5
Statement of income:
Grants and other income 1.1 0.7
Operational costs (29.0) (30.1)
Financial and other income and expenses (4.2) 3.2
Net loss (32.1) (26.2)
Statement of cash flows:
Net cash used in operating activities (24.3) (21.9)
Net cash from/(used in) investment activities 4.2 (0.8)
Net cash from/(used in) financing activities 2.5 (18.8)
Share data:
Outstanding shares at the end of the year 154,501,037 97,429,854
Weighted average shares outstanding in the year 116,177,686 91,657,617
Basic and diluted net loss per share (?) (0.28) (0.29)
(*) Year end 2009 cash excludes ?7.5 million proceeds from early 2010 financing
Discussion of financial transactions and financial position
In 2009, the Company entered into several equity transactions and convertible
bond settlements.
Standby Equity Distribution Agreement with YA Global
In April 2009, Pharming signed into a ?20.0 million Standby Equity Distribution
Agreement with YA Global. Under the terms of the April agreement, YA Global can
invest a total of up to ?20.0 million in a three year period. Pharming has the
right, but not the obligation, to call the funds in regular tranches. In the
second quarter of 2009, the Company started using the SEDA and called a total
amount of ?2.8 million in cash in exchange for the issuance of approximately
4.6 million Pharming shares, followed by another ?3.8 million in cash in the
second quarter in exchange for another 7.3 million shares issued.
On October 5, 2009, YA Global and Pharming announced that the original agreement
has been extended with another ?10.0 million, so the total facility amounts to
?30.0 million of which ?23.4 million is available as per today. At closing of
the agreement in April, Pharming issued a one-off payment of 0.8 million
commitment shares with another 0.4 million commitment shares paid upon extension
of the agreement.
Convertible bonds settlements and public offer
In the first half of 2009, Pharming entered into various agreements with several
holders of bonds issued in 2007. Under these agreements, the Company
successfully cancelled a total outstanding amount of ?14.1 million nominal bonds
in exchange for ?1.0 million cash and issuance of 9.5 million shares.
Subsequently, in October 2009 the Company successfully completed a public offer
under which remaining bondholders were invited to exchange bonds (nominal value
of ?50,000 each) into cash and shares (?7,500 cash and 59,000 shares per bond).
In total, bonds with a nominal value of ?24.9 million (70% of ?35.8 million
bonds outstanding prior to the offer) were offered for conversion and
subsequently the Company paid ?3.7 million in cash and issued 29.3 million
shares. The cash portion of the offer was, in addition to the SEDA with YA
Global, funded by other investors through issuance of 5.1 million shares for
total cash proceeds of ?2.6 million.
Following these transactions, the outstanding nominal value of bonds was reduced
from ?49.9 million at year end 2008 to ?10.9 million at December 31, 2009. As a
result, annual interest payments of ?4.8 million in 2008 were reduced by ?2.9
million to ?1.9 million in 2009 with a further decrease of ?1.1 million to less
than ?0.8 million anticipated for 2010.
Discussion of results
In 2009, the Company's income increased from ?0.7 million to ?1.1 million. The
increase stems from ?0.3 million license fee income (2008: nil) and increased
grant income (from ?0.6 million in 2008 to ?0.8 million in 2009) triggered by
higher costs eligible for grants and improved facilities on grant programs by
the Dutch government.
Operational costs decreased from ?30.1 million in 2008 to ?28.9 million in
2009. The ?1.2 million decrease among others reflects ?4.0 million lower
non-cash impairment charges offset with a ?2.4 million increase of research and
development costs and a ?0.3 million increase of general and administrative
costs. Impairment charges in 2008 amounted to ?4.2 million in relation to
inventories (?1.3 million), goodwill (?1.1 million), ProBio assets (?1.0
million), manufacturing equipment (?0.7 million) and other items (?01. million);
for 2009, total impairment charges of ?0.2 million follow from the Company's
review of recoverability of ProBio's assets. Costs of research and development
increased from ?22.1 million to ?24.5 million, reflecting Pharming's submission
of a Marketing Authorization Application (EU) for Rhucin in September 2009. At
the same time, the Company has intensified the Rhucin development program in
North America and the preparation of clinical trials of Prodarsan. Pharming's
general and administrative costs increased from ?3.3 million to ?3.6 million,
which largely reflects costs incurred with respect to the public offer to the
bondholders as described earlier and including the issuance of a prospectus.
Costs of share based compensation programs remained constant at ?0.6 million.
Financial and other income and expenses for the years ended 2008 and 2009 were
highly affected with non-cash valuation adjustments in relation to convertible
bonds, marketable securities and deferred tax items as well as interest derived
from cash and marketable securities. In total, net losses from these items in
2009 were ?3.9 million compared to net profits of ?3.2 million in 2008; the
fluctuation is primarily caused by the effect of a non-cash derivative profit of
?4.9 million in 2008 (?0.2 million in 2009), ?1.6 million lower net interest
income on cash and marketable securities and ?0.8 million costs incurred in
relation to various 2009 financing transactions.
Given uncertainties in the current environment, Pharming is not providing
guidance for the financial results in 2010.
Conference call information
Today, Chief Executive Officer Sijmen de Vries will present the 2009 results and
the outlook for 2010 in a conference call for analysts at 9:00 am and for press
at 10:30 am CET. To participate, please call one of the following numbers 10
minutes prior to the call:
Analyst call (conference ID 423 0982):
* From the Netherlands:0800 265 8543 (toll-free) or +31 (0)45 631 6903
* From the UK: 0800 358 0886(toll-free) or +44 207 153 2027
Press call (conference ID 423 0986):
* From the Netherlands:0800 265 8543 (toll-free) or +31 (0)45 631 6901
* From the UK: 0800 358 0886(toll-free) or +44 207 153 2027.
Following a presentation of the results, the lines will be opened for a question
and answer session. An audio cast of the conference calls will be available on
Pharming's website shortly thereafter.
The detailed results for the year ended December 31, 2009 will be included in
the Annual Report 2009. Final 2009 results are subject to change in view of, in
particular, impairment testing of assets.
About Pharming Group NV
Pharming Group NV is developing innovative products for the treatment of genetic
disorders, ageing diseases, specialty products for surgical indications, and
nutritional products. Pharming's lead product Rhucin® for acute attacks of
Hereditary Angioedema has passed clinical development stage and the Market
Authorization Application is under review with the European Medicines Agency.
Prodarsan® is in early stage clinical development for Cockayne Syndrome and
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, http://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:
Marjolein van Helmond, T: +31 (0)71 52 47 431 or +31 (0)6 109 299 54
Samir Singh, T: + 1 908 720 6224
The full report including tables can be downloaded from the following link:
[HUG#1385766]
2009 Results: http://hugin.info/132866/R/1385766/344478.pdf
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 18.02.2010 - 01:00 Uhr
Sprache: Deutsch
News-ID 1010531
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
Leiden
Phone:
Kategorie:
Business News
Anmerkungen:
Diese Pressemitteilung wurde bisher 331 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Pharming announces 2009 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Pharming Group N.V. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
