Pharming Group N.V.
amsterdam : PHARM

August 04, 2011 01:16 ET

Pharming publishes financial report first half year 2011

LEIDEN, NETHERLANDS--(Marketwire - Aug 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 EUR1.4 million (H1 2010: EUR0.1 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 EUR9.1 million (H1 2010: EUR10.1 million). Operating cash outflows in the first half of 2011 amounted to EUR8.9 million compared to EUR10.0 million (H1 2010) of which EUR8.4 million in H1 2010 was from continuing operations and EUR1.6 million from discontinued operations. The EUR0.5 million net increase in cash outflow from continued operations is explained by EUR2.9 million less cash received from commercial partners, primarily related to a EUR3.0 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 EUR8.0 million (H1 2010: EUR28.0 million).

* In the six months to June 30, 2011, net cash and cash equivalents, including restricted cash, increased to EUR11.0 million (December 31, 2010: EUR10.5 million). The EUR0.5 million increase largely reflects the net cash inflows from financing activities of EUR10.2 million and net operating cash outflows of EUR8.9 million. Post period we raised EUR3.2 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 CET, details provided below)

KEY FINANCIAL DATA

(in EURmillion, except per share data)      Half year ended Half year ended
                                              June 30, 2011   June 30, 2010
                                                (unaudited)     (unaudited)



Statement of financial position:

Non-current assets (excluding restricted cash)         10.2            27.0

Cash   and   cash   equivalents,   net  of  bank       11.0             9.8
overdrafts

Inventories and other current assets                    8.6            12.4

Total assets                                           29.8            49.2



Total equity                                            4.1            11.4

Deferred license fees income                           18.3             3.1

Convertible bonds                                         -            11.7

Other liabilities                                       7.4            23.0

Total equity and liabilities                           29.8            49.2



Statement of income:

Revenues and other income                               1.4             0.1

Cost of revenues                                      (1.1)               -

Other operating costs                                 (9.1)          (10.1)

Financial income and expenses                           0.2          (16.3)

Net loss from continuing operations                   (8.6)          (26.3)

Net profit/(loss) from discontinued operations          0.6           (1.7)

Total net loss                                        (8.0)          (28.0)



Net  loss attributable  to equity  owners of the      (7.9)          (28.0)
parent

Net   loss   attributable   to   non-controlling      (0.1)               -
interest



Statement of cash flows:

Net cash used in operating activities                 (8.9)          (10.0)

Net cash used in investment activities                (0.6)               -

Net cash from financing activities                     10.2            18.3



Share data:

Outstanding shares at the end of the period     461,116,470     304,953,323

Weighted   average  shares  outstanding  in the 452,653,744     177,091,915
period

Basic and diluted net loss per share (EUR)            (0.02)         (0.16)

FINANCIAL RESULTS

Financial results for the first six months of this year showed significant increase in revenues compared with the equivalent period last year.

In the six months to June 30, 2011 the Company generated revenue and other income from continuing operations of EUR1.4 million (H1 2010: EUR0.1 million). This increase reflects the recognition of license fee income and product sales following launch of Ruconest® in December 2010. Costs associated with the revenues and other income amounted to EUR1.1 million.

Total operating costs from continuing operations decreased to EUR9.1 million (H1 2010: EUR10.1 million). The decrease partially reflects the timing of expenses, in particular related to the EU regulatory activities in the first half year of 2010 and a continuing emphasis on cost containment.

Financial income and expenses from continuing operations resulted in a EUR0.2 million profit (H1 2010: EUR16.3 million loss). Except for the derivative financial liability, which yielded a EUR0.3 million profit in the first half year of 2011, the anti-dilution provisions, convertible bonds and earn-out obligations were all settled in the second half of 2010 so that no further expenses were incurred in 2011.

Following liquidation of DNage early 2011, the Company deconsolidated the DNage entity from its statement of financial position, resulting in a one-time profit from discontinued operations of EUR0.6 million (H1 2010: EUR1.7 million loss).

Overall, the total net loss including the contribution of minority shareholders decreased to EUR8.0 million (H1 2010: EUR28.0 million). The net loss per share for the first half year decreased to EUR0.02 (H1 2010: EUR0.16).

FINANCIAL POSITION

In the six months to June 30, 2011, net cash and cash equivalents, including restricted cash, increased to EUR11.0 million (December 31, 2010: EUR10.5 million). The EUR0.5 million increase largely reflects the net cash inflows from financing activities of EUR10.2 million and net operating cash outflows of EUR8.9 million.

The full half year report for the period ended June 30, 2011 can be found on Pharming's website.

Conference call information

Today, Chief Executive Officer Sijmen de Vries and Chief Financial Officer Karl Keegan will present the first half 2011 results in a conference call for analysts and press at 11:00 CET. To participate, please call one of the following numbers 10 minutes prior to the call:

From the Netherlands: 0800-265-8611 (toll-free) or (0) 45-631-6902 From the UK: 0800-358-0886 (toll-free) or 207-153-2027

To view the presentation live during the call, please follow the below link: http://event.on24.com/r.htm?e=343313&s=1&k=24DC284C4757B14F8A089F6E2567B5C2

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.


About Pharming Group NV

Pharming Group NV is developing innovative products for the treatment of unmet medical needs. Ruconest® (Rhucin® in non-European territories) is a recombinant human C1 inhibitor approved for the treatment of angioedema attacks in patients with HAE in all 27 EU countries plus Norway, Iceland and Liechtenstein, and is distributed in the EU by Swedish Orphan Biovitrum (STO: SOBI). Rhucin® is partnered in North America with Santarus Inc (NASDAQ: SNTS) where the drug is undergoing Phase III clinical development. The product is also under development for follow-on indications, i.e. antibody-mediated rejection (AMR) and delayed graft function (DGF) following kidney transplantation. The advanced technologies of the Company include innovative platforms for the production of protein therapeutics and technology and processes for the purification and formulation of these products. Additional information is available on the Pharming website, 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.

The full report including tables can be downloaded from the following link:

Q2 Report 2011: http://hugin.info/132866/R/1536099/468598.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Pharming Group N.V. via Thomson Reuters ONE

[HUG#1536099]

Contact Information

  • Contact
    Karl Keegan
    CFO:
    T: 6 3168 0465

    Financial Dynamics
    Julia Phillips
    John Dineen:
    T: (20)7 269 7193