Pharming announces Financial Results First Half Year 2009>
Pharming announces Financial Results First Half Year 2009
(Thomson Reuters ONE) - Leiden, The Netherlands, July 17, 2009. Biotech company PharmingGroup NV ("Pharming" or "the Company") (Euronext: PHARM) announcedtoday its financial first half year (HY1) results for the periodended June 30, 2009.Key financial developments first half year 2009 * ?20.0 million Standby Equity Distribution Agreement ("SEDA") signed with YA Global Master SPV LTD ("YA Global"); * SEDA (equity) financing of ?2.8 million implemented in June; * ?70.0 million convertible bonds (issued in 2007) reduced to ?35.8 million at June 30, 2009 from ?49.9 million at year end 2008; * Operational costs from ?12.8 million in the first six months of 2008 to ?14.6 million in the same period of 2009 driven by preparation of submitting an EU Marketing Authorization Application for Rhucin® in September 2009 as well as intensified efforts for the Rhucin® program in North America and preparation for continued clinical activities of Prodarsan®; * Net loss in the first half year 2009 of ?15.1 million as compared to ?12.1 million in the first half of 2008 as a result of increased operational costs (?1.8 million), decreased interest income (?0.9 million) and the effect of non-cash items (?0.3 million).Key financial data (in ?million, except per share data) HY1 ended Year ended HY1 ended June 30, 2009 December 31, June 30, 2008 2008Statement of financialposition:Non-current assets 30.1 31.0 34.8(excluding restricted cash)Cash and marketablesecurities, net of bank 10.7 23.5 38.6overdraftsOther current assets 14.2 12.6 9.6Total assets 55.0 67.1 83.0Convertible bonds 26.7 35.7 48.3Other liabilities 20.3 18.9 12.6Total equity 8.0 12.5 22.1Statement of income:Grants and other income 0.3 0.7 0.2Operational costs (14.6) (30.1) (12.8)Financial and other income (0.8) 3.2 0.5and expensesNet loss (15.1) (26.2) (12.1)Statement of cash flows:Net cash used in operating (13.4) (21.9) (12.9)activitiesNet cash used in investment (0.3) (0.8) (0.7)activitiesNet cash from/(used in) 0.2 (18.8) (12.5)financing activitiesShare data:Outstanding shares at the 112,362,987 97,429,854 91,236,673end of the periodWeighted average shares 100,138,967 91,657,617 91,235,909outstanding in the periodBasic and diluted net loss (0.15) (0.29) (0.13)per share (?)Discussion of financial transactions and financial positionThe first half of 2009, the Company successfully negotiated severalfinancial agreements in order to maintain the cash position andimprove the equity position, while at the same time decreasing itsliabilities and future interest payments.Standby Equity Distribution Agreement with YA GlobalIn April 2009, Pharming signed into a ?20 million Standby EquityDistribution Agreement with YA Global. Under the terms of theagreement, YA Global can invest a total of up to ?20.0 million in athree year period. Pharming has the right, but not the obligation, tocall the funds in regular tranches. In June, Pharming started usingthe SEDA and called a total amount of ?2.8 million in cash inexchange for the issuance of approximately 4.6 million Pharmingshares. At closing of the agreement in April, Pharming issued aone-off payment of 0.8 million commitment shares.In early July 2009, Pharming called ?0.4 million in cash for aconsideration of 800,000 shares, resulting in a total amount of ?16.8million still available under the agreement as at today.Settlement of convertible bondsIn the first half of 2009, Pharming entered into various agreementswith 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 andissuance of 9.5 million shares. Following these transactions, theoutstanding nominal value of bonds was reduced from ?49.9 million atyear end 2008 to ?35.8 million at June 30, 2009 so that approximately50% of the original ?70.0 nominal value of the bonds issued in 2007has now been cleared. Based on this reduction, annual interestpayments of ?4.8 million in 2008 are expected to be reduced by ?2.0million to ?2.8 million in 2009, of which ?1.5 million has alreadybeen paid in the second quarter with the payment of the remaining?1.3 million scheduled for the fourth quarter.In compliance with International Financial Reporting Standards, uponissuance of the ?70.0 million convertible bonds, a derivative portionof ?21.7 million and transaction fees of ?3.0 million were carved outto arrive at a net liability of ?45.3 million. This initial liabilityincreases in subsequent periods through charging an effectiveinterest rate in order to, ultimately, fully equal the total amountsof semi-annual interest nominal interest payments of 6.875% and theredemption payment over the total five year period. As a result, thecarrying value of the bonds at the end of each reporting period islower than the nominal value of the outstanding bonds. At June 30,2009, the total carrying value including the short-term portion ofnominal interest due is ?26.7 million as compared to nominal bonds of?35.8 million outstanding.Discussion of resultsIn the first half year of 2009, the Company's income increased from?0.2 million to ?0.3 million as a result of grants received based onincreased costs eligible for grants and increased facilities oncertain grant programs by the Dutch government.Operational costs increased from ?12.8 million in the first sixmonths of 2008 to ?14.6 million in the same period of 2009. The ?1.8million increase primarily results from increased costs of researchand development (from ?10.3 million to ?12.4 million), reflectingPharming's efforts to complete the previously announced submission ofan EU Marketing Authorization Application for Rhucin in September2009. At the same time, the Company is intensifying its efforts forthe Rhucin development program in North America and to prepare forclinical trials of Prodarsan. Operational costs for the first half of2009 included ?1.0 million for non-cash items compared to ?1.2million in the comparative period in 2008; costs of share basedcompensation programs and deprecation and amortization chargesremained fairly constant but contrary to the first half year 2008 nooperating asset impairment charges were incurred.Financial and other income and expenses in the first half of both2008 and 2009 were highly affected with non-cash valuationadjustments in relation to convertible bonds, marketable securitiesand deferred tax items as well as interest derived from cash andmarketable securities. In total, net losses from these items in thefirst half of 2009 were ?0.8 million compared to net profits of ?0.5million in the six months ended June 30, 2008; these effects areprimarily related to lower interest income from cash and marketablesecurities.Dr. Sijmen de Vries, Chief Executive Officer, commented: "With theplanned regulatory submission for Rhucin in September and thedevelopment of our products on track, we can look back on a quarterthat has progressed in line with expectations. An importantachievement is that we decreased our financial risk profile with theconclusion of the ?20 million SEDA with YA Global, which isillustrated by the ?2.8 million we raised from this facility in June.Notwithstanding the above, further improvement of our financialposition remains the top priority for management during the secondhalf of the year. Several types of transactions including(convertible) debt, project-specific financing and licensing dealsfor our assets such as Rhucin and Lactoferrin are currently underconsideration and discussion. In addition, we still anticipatereceiving milestone payments from our partnering agreements thisyear. These transactions should keep the Company securely financedwell into 2010. I look forward to reporting further on this as wellas on progress with our clinical programmes."Conference call informationToday, Chief Executive Officer Sijmen de Vries will present the HY12009 results in a conference call for analysts at 9:00 am and forpress at 10:30 am CET. To participate, please call one of thefollowing numbers 10 minutes prior to the call:Analyst call (conference ID 411 8549): * 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 2027Press call (conference ID 411 8581): * 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.Following a presentation of the results, the lines will be opened fora question and answer session. An audio cast of the conference callswill be available on Pharming's website shortly thereafter.The full half year report for the period ended June 30, 2009 can befound on Pharming's website.About Pharming Group NVPharming Group NV is developing innovative products for the treatmentof genetic disorders, ageing diseases, specialty products forsurgical indications, intermediates for various applications andnutritional products. Pharming has two products in late stagedevelopment - Rhucin® for Hereditary Angioedema and human lactoferrinfor use in food products. The advanced technologies of the Companyinclude innovative platforms for the production of proteintherapeutics, technology and processes for the purification andformulation of these products, as well as technology in the field ofDNA repair (via DNage). Additional information is available on thePharming website, www.pharming.com.This press release contains forward looking statements that involveknown and unknown risks, uncertainties and other factors, which maycause the actual results, performance or achievements of the Companyto be materially different from the results, performance orachievements expressed or implied by these forward lookingstatements.Contact:Sijmen de Vries, Pharming Group NV, T: +31 (0)71 52 47 400The full report including tables can be downloaded from the followinglink:http://hugin.info/132866/R/1329421/313843.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 17.07.2009 - 07:00 Uhr
Sprache: Deutsch
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