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Pharmathene Reports Wider 2010 Loss

From Associated Press (March 28, 2011)

ANNAPOLIS, Md. -- Biotechnology company PharmAthene Inc. said Monday it took a wider loss in 2010, as revenue from the U.S. government decreased and the company lost money on derivatives.

PharmAthene said it lost $34.8 million, compared with a loss of $32.3 million in 2009. Because PharmAthene has more shares on the market than it did a year ago, its per-share loss fell to $1.08 from $1.17. Revenue declined 24 percent to $21 million from $27.5 million.

PharmAthene is developing the anthrax treatments SparVax and Valortim, as well as Protexia, which is designed to prevent or treat damage caused by nerve agents. Most of its revenue comes from U.S. government contracts. The company reported more revenue from SparVax development in 2010, but its other revenue decreased because clinical development of Protexia was completed in 2009, and studies of Valortim were halted for most of the last year.

The Food and Drug Administration placed a partial clinical hold on trials of Valortim in late 2009 and allowed testing to resume in December 2010.

The company reported a loss of $5.5 million because of changes in the market value of derivative instruments. In 2009, it reported a $1 million gain from derivatives.

Because its clinical work decreased, PharmAthene said its annual research and development costs fell 31 percent to $20.9 million from $30.2 million. Its depreciation and amortization costs rose to $5.7 million from $872,000.

Shares of PharmAthene picked up a penny to close at $3.44 in Monday trading.


Posted: March 2011