Daily News: April 3, 2012

GE Healthcare Provides $7.5MM Credit Facility to PharmAthene

PharmAthene announced that it has secured $7.5 million in senior secured credit facilities from GE Capital, Healthcare Financial Services consisting of a $2.5 million term loan and a revolving line of credit of up to $5 million.

PharmAthene was formed to meet the critical needs of the United States and its allies by developing and commercializing medical countermeasures against biological and chemical weapons.

Linda L. Chang, senior vice president and chief financial officer, commented, “We are very pleased to partner with GE Capital – a recognized leader in healthcare financing. This financing further strengthens our balance sheet and provides us with increased flexibility to manage our working capital requirements.”

  • PharmAthene’s lead product development programs include:

  • SparVax – a second generation recombinant protective antigen (rPA) anthrax vaccine;

  • Valortim – a fully human monoclonal antibody for the prevention and treatment of anthrax infection; and

    Recombinant BChE – a novel bioscavenger for the prevention and treatment of morbidity and mortality associated with exposure to chemical nerve agents.

    In addition, pursuant to an opinion issued September 22, 2011, from the Delaware Court of Chancery, PharmAthene is entitled to 50% of the net profits over ten years from all sales of SIGA Technologies’ ST-246, a novel smallpox antiviral agent being developed by SIGA for the treatment and prevention of morbidity and mortality associated with exposure to the causative agent of smallpox, and related products, once SIGA receives the first $40 million in net profits from sales of ST-246.

    “Our expected 2012 monthly cash burn is less than $500,000 per month based on currently projected activities on our contracts,” Chang continued. “Given that PharmAthene had $19.2 million in cash and cash equivalents, short term investments, and net receivables as of December 31, 2011, this financing provides an additional liquidity cushion until the time in 2013 when we anticipate receiving final resolution of the litigation with SIGA Technologies.”