Pharming Group N.V. (Euronext: PHARM; “Pharming” or “the Company”)
announced today its financial results for the nine month period ended September 30, 2003. The Company
reported on its improved financial position and on the clinical development of recombinant human C1 inhibitor
(“rhC1INH”).
Prospect
For the nine month period ended September 30, 2003, the Company’s total revenues were 0.4 million
compared to EUR 2.1 million in 2002. The revenues of Pharming were recognized from research and
development revenues and existing government grants and subsidies.
The total costs and expenses were
EUR 8.4 million compared to EUR 5.8 million (excluding benefits from restructuring) over the same period in
2002. The costs and expenses of the Company are largely attributable to investments made in the clinical
development of the Company’s lead product recombinant human C1 inhibitor while other cash costs remained
low, in line with or slightly lower than the costs over the comparable period in 2002. As a consequence, the net
result of Pharming is a loss of EUR 8.1 million for the nine month period ended September 30, 2003. Net cash
used for operational activities amounted to approximately EUR 4.1 million with the remainder of the loss
largely attributable to use of prepaid stock and to depreciation and amortization of assets.
The financial position of Pharming strengthened in the nine month period ended September 30, 2003.
During
this period, the Company raised EUR 7.6 million through previously disclosed financing transactions of which
EUR 5.6 million have been received at balance date. As of September 30, 2003, the total assets of the
Company are EUR 12.4 million. The Company’s cash liabilities have been reduced significantly to EUR 1.7
million from EUR 5.3 million at the end of 2002. The total equity of the Company is EUR 6.4 million at
September 30, 2003 compared to EUR 11.2 million at the end of 2002.
The changes on the balance sheet
mainly reflect investments made for the production of recombinant human C1 inhibitor and release of batches
of rhC1INH for use in clinical studies. The Company expects that in the fourth quarter of this year, convertible
short term loans as well as warrants and options owned by current investors and Management will be
converted into Pharming shares.
The successful completion of these transactions will further improve the
financial position of the company through an increase in equity and reduction of liabilities.