ANNAPOLIS, Md., April 13, 2015 /PRNewswire/ -- PharmAthene,
Inc. (NYSE MKT: PIP) announced today that on April 9, 2015, it received from the Biomedical
Advanced Research and Development Authority (BARDA) a one-time
payment of $5.8 million related to
the reconciliation between the actual and the provisional rates on
the performance of the SparVax® contract for the years
2008 through 2013 for actual costs incurred during that period. The
contract ended on February 28,
2015.
Forward-Looking Statement Disclaimer
Except for the historical information presented herein, matters
discussed may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to certain risks and uncertainties that could
cause actual results to differ materially from any future results,
performance or achievements expressed or implied by such
statements. Statements that are not historical facts, including
statements preceded by, followed by, or that include the
words "potential"; "believe"; "anticipate"; "intend"; "plan";
"expect"; "estimate"; "could"; "may"; "should"; "will"; "project";
"potential"; or similar statements are forward-looking statements.
PharmAthene disclaims any intent or obligation to update these
forward-looking statements other than as required by law. Risks and
uncertainties include risks associated with our interest in the
judgment relating to Tecovirimat, also known as ST-246® (formerly
referred to as "Arestvyr™" and referred to by SIGA in its recent
SEC filings as "Tecovirimat") (including the risk that we will not
be able to collect any amounts related thereto); risks relating to
our continuing ability to recognize cost reductions; risks
associated with the reliability of the results of the studies
relating to human safety and possible adverse effects resulting
from the administration of the Company's product candidates;
funding delays and/or reductions or elimination of U.S. government
funding and/or non-renewal of expiring funding under our
September 2014 contract with NIAID
after we receive funding of approximately $5.2 million over the base period (if all
technical milestones are met); risks associated with our common
stock; risks associated with the GE Loan Agreement; risks
associated with our net operating loss carryforwards, or NOLs;
risks associated with delays caused by third parties challenging
government contract awards to us; risks associated with unforeseen
safety and efficacy issues;; risks associated with our realignment
plan; risks associated with accomplishing any future strategic
partnerships or business combinations; risks associated with
continuing funding requirements and dilution related thereto; risks
relating to our ability to continue to satisfy the listing
requirements of the NYSE MKT; and other risks detailed from time to
time in PharmAthene's Forms 10-K and 10-Q under the caption "Risk
Factors" and in its other reports filed with the U.S.
Securities and Exchange Commission. On January 15, 2015, the Delaware Court of Chancery issued its Final
Order and Judgment in PharmAthene's litigation against SIGA
Technologies, Inc. The Court of Chancery awarded to PharmAthene
lump sum expectation damages for the value of PharmAthene's lost
profits for SIGA's smallpox antiviral, Tecovirimat. In addition,
the Court of Chancery ordered SIGA to pay pre-judgment interest and
varying percentages of PharmAthene's reasonable attorneys' and
expert witness fees. Under the Final Order and Judgment,
PharmAthene is also entitled to post-judgment simple interest.
PharmAthene's entitlement to interest from and after SIGA's
bankruptcy filing (as described below) may be negatively impacted
by the Bankruptcy Code. SIGA has filed a notice of appeal
with the Delaware Supreme Court in which it challenges various
findings of the Court of Chancery and seeks to set aside the Final
Order and Judgment, and we have filed a notice of cross-appeal.
As a result, the decision could be reversed, remanded or
otherwise changed. There can be no assurances if and when
PharmAthene will receive any payments from SIGA as a result of the
decision. SIGA has stated publicly that it does not currently
have cash sufficient to satisfy the award. It is also uncertain
whether SIGA will have such cash in the future. PharmAthene's
ability to collect the Judgment depends upon a number of factors,
including SIGA's financial and operational success, which is
subject to a number of significant risks and uncertainties (certain
of which are outlined in SIGA's filings with the SEC), as to which
we have limited knowledge and which we have no ability to control,
mitigate or fully evaluate. Furthermore, because SIGA has
filed for protection under the federal bankruptcy laws, PharmAthene
is automatically stayed from taking any enforcement action in the
Delaware Court of Chancery. By
agreement of the parties, and with the approval of the Bankruptcy
Court, the automatic stay has been lifted for the sole purpose of
allowing the Delaware Court of
Chancery to enter a money judgment and to allow the parties to
exercise their appellate rights. Our ability to collect a money
judgment from SIGA remains subject to further proceedings in the
Bankruptcy Court. Further, at this point, future government
funding to support the development of Valortim®, rBChE and SparVax®
is unlikely. Even if we received such funding, significant
additional non-clinical animal studies, human clinical trials, and
manufacturing development work remain to be completed for all of
our product candidates. It is also uncertain whether any of our
product candidates will be shown to be safe and effective and
approved by regulatory authorities for use in humans.
Finally, PharmAthene can offer no assurances that it has
correctly estimated the resources necessary to execute under its
NIAID contract and seek partners, co-developers or acquirers for
its other programs under its realignment plan. If a larger
workforce or one with a different skillset is ultimately required
to implement the realignment plan successfully, or if PharmAthene
inaccurately estimated the cash and cash equivalents necessary to
finance its operations until SIGA's appeal has been adjudicated and
it has received SIGA's payment, its business, results of
operations, financial condition and cash flows may be materially
and adversely affected.
Copies of PharmAthene's public disclosure filings are available
on our website under the investor relations tab at
www.PharmAthene.com.
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SOURCE PharmAthene, Inc.