April 3, 2012
/PRNewswire/ -- PharmAthene, Inc. (NYSE Amex: PIP) today announced that it has secured
in senior secured credit facilities from GE Capital, Healthcare Financial Services consisting of a
term loan and a revolving line of credit of up to
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."
"Our expected 2012 monthly cash burn is less than
per month based on currently projected activities on our contracts," Ms. Chang continued. "Given that PharmAthene had
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."
For a summary of the terms of the credit facility, see the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date hereof.
About PharmAthene, Inc.
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. 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
- 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
Court of Chancery, PharmAthene is entitled to 50% of the net profits over 10 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
in net profits from sales of ST-246. For more information about PharmAthene, please visit
About GE Capital, Healthcare Financial Services