Pharming publishes First Quarter 2010 Financial Report
(Thomson Reuters ONE) -
Leiden, The Netherlands, April 22, 2010. Biotech company Pharming Group NV
("Pharming" or "the Company") (NYSE Euronext: PHARM) today published its
financial report for the first quarter ended March 31, 2010.
Key financial items
* Secured ?7.5 million convertible debt financing in early January with a
possibility to extend with an additional ?2.5 million. This debt will be
converted into equity during the remainder of 2010;
* Authorized share capital was increased from 200 million to 400 million and
nominal value per share was adjusted from ?0.50 to ?0.04;
* Operational costs decreased from ?6.6 million in the first quarter of 2009
to ?6.2 million in the same period of 2010 as a result of capitalization of
Rhucin® development costs in Q1 2010 (? 0.2 million) and the timing of
various expense items incurred in Q1 2009;
* Increased net loss in Q1 2010 of ?7.7 million as compared to ?6.2 million in
Q1 2009 primarily stems from a ?1.9 million profit realised on convertible
bonds settlements in the first quarter of 2009.
Key financial data (in ?million, except per share data) (unaudited)
Quarter Year Quarter
ended ended ended
March 31, December 31, March 31,
2010 2009 2009
Statement of financial position:
Non-current assets (excluding restricted 27.3 27.1 30.9
cash)
Cash and marketable securities, net of bank 3.3 2.3 16.0
overdrafts
Inventories and other current assets 12.6 12.6 12.9
Total assets 43.2 42.0 59.8
Convertible bonds 18.1 9.5 33.5
Other liabilities 19.2 19.2 19.2
Total equity 5.9 13.3 7.1
Statement of income:
Grants and other income 0.2 1.1 0.1
Operational costs (6.2) (29.0) (6.6)
Financial and other income and expenses (1.7) (4.2) 0.3
Net loss (7.7) (32.1) (6.2)
Statement of cash flows:
Net cash used in operating activities (6.3) (24.3) (6.4)
Net cash from/(used in) investment - 4.2 (0.1)
activities
Net cash from/(used in) financing activities 7.5 2.5 (1.0)
Share data:
Outstanding shares at the end of the period 154,501,037 154,501,037 98,960,156
Weighted average shares outstanding in the 154,501,037 116,177,686 98,822,277
period
Basic and diluted net loss per share (?) (0.05) (0.28) (0.06)
Financial position
In the first quarter of 2010, the Company entered into a 9% convertible debt
financing of ?7.5 million, with the possibility to increase to ?10.0 million,
and issued 15,000,000 warrants with an exercise price of ? 0.50 and an
expiration date of December 31, 2012. This debt will be converting into equity
no later than December 31, 2010. At the end of the first quarter 2010, as a
result of meeting certain conditions in the investment agreement, the
bondholders received an additional number of 3,750,000 warrants, bringing the
total number of warrants under the agreement to 18,750,000, while at the same
time the exercise price was lowered from ?0.50 to ?0.40. The maximum conversion
price for the bonds also decreased from ? 0.50 to ? 0.40.
On March 30, 2010 the Company's shareholders approved to increase authorized
share capital from 200 million to 400 million and to adjust the nominal value
per share from ?0.50 to ?0.04. The approval of the shareholders was requested
due to the Company's limited flexibility to issue new shares since 154.5 million
shares were outstanding with the main portion of the unissued 45.5 million
shares reserved for convertible debt facilities. These changes were legally
formalized on April 1, 2010 as a result of which, at 154.5 million shares
outstanding, the Company's share capital reported at the end of the first
quarter 2010 will decrease with ?71.1 million from ?77.3 million to ?6.2 million
with a corresponding increase of other reserves; the overall effect of the
adjustment on total equity therefore is nil. Overall, total equity of ?13.3
million at December 31, 2009 decreased to ?5.9 million at March 31, 2010; the
?7.4 million decrease reflects the first quarter 2010 net loss of ?7.7 million
minus other changes of ?0.3 million.
In April 2010, the first quarter interest due on the 2010 convertible bonds was
paid through issuance of 407,475 shares; in addition, an aggregate number of
1,756,564 shares were issued with respect to the conversion of ?0.7 million
nominal bonds. As a result of these transactions, the total number of
outstanding ordinary shares at March 31, 2010 of 154,501,037 increased to
156,665,076 as per today while the nominal value of the bonds issued in 2010
decreased from ?7.5 million to ?6.8 million.
Due to the ?7.5 million cash proceeds of the convertible bonds issued in January
2010, the Company improved its net cash position from ?2.3 million at year end
2009 to ?3.3 million at the end of the first quarter 2010 with cash used in
operating cash flows being fairly constant at ?6.3 million compared to ?6.4
million in the first quarter of 2009.
Financial results
In the first quarter of 2010, the Company's income increased from ?0.1 million
to ?0.2 million, which in both quarters is exclusively related to grants.
Operational costs decreased from ?6.6 million in the first quarter of 2009 to
?6.2 million in the same period of 2010. The ?0.4 million decrease among others
reflects ?0.2 million of Rhucin® development costs capitalized as intangible
assets in Q1 2010 compared to none in the first quarter of 2009. The remaining
?0.2 million decrease primarily relates to the timing of Rhucin® activities in
the first quarter of 2009.
Financial income and expenses in the first quarter of 2010 amounted to a net
expense of ?1.7 million compared to a net income of ?0.2 million in the first
quarter of 2009. The difference primarily stems from a ?1.9 million profit
realised on convertible bonds settlements in the first quarter of 2009.
Sijmen de Vries, MD, MBA, Chief Executive Officer, commented: ''The first
quarter of 2010 started under challenging circumstances. The convertible debt,
secured at the start of the year, however provided us with sufficient runway to
continue the regulatory processes of Rhucin and enabled us to execute on our
first major commercialisation agreement for Rhucin, which in turn provided us
with an upfront payment (which is not included in the net cash at the end of the
first quarter 2010). We now look forward to continue to execute on our plans:
proceeding with the Rhucin regulatory processes in Europe and USA, ensuring
launch readiness together with our European partners as well as continuation of
our partnering discussions for territories outside the European Union, Iceland,
Norway, Switzerland and Turkey. In addition we pursue the further solidification
of our financial basis through a combination of further cost savings and debt or
equity financing. In this respect we have now engaged Kempen & Co and Petercam
Bank to jointly investigate the possibilities of attracting additional
funding.''
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,www.pharming.com
Contact:
Sijmen de Vries, CEO
+31 71 5247 400
The full report including all tables can be downloaded from the following link:
[HUG#1406614]
Q1 Report 2010: http://hugin.info/132866/R/1406614/360107.pdf
Unternehmensinformation / Kurzprofil:
Datum: 22.04.2010 - 07:00 Uhr
Sprache: Deutsch
News-ID 19466
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Town:
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