Bloomberg News

Pharming Second-Quarter Loss Shows Little Change

August 04, 2006

Pharming Group NV (PHARM), a biotechnology company that uses milk from genetically modified rabbits to make its most-advanced experimental product, said its second-quarter loss showed little change as sales fell and one-time costs of a production agreement with Akzo Nobel NV weren't repeated.

The net loss was 4.4 million euros ($5.6 million), or 5 cents a share, compared with 4.3 million euros, or 5 cents, a year earlier, the Leiden, Netherlands-based company said in an e- mailed statement today. Costs and expenses declined to 4.4 million euros from 4.7 million euros, Pharming said.

The Dutch company is developing a medicine for hereditary angioedema, an abnormal swelling in the body. Pharming asked European regulators earlier this month for permission to sell the treatment, known as recombinant human C1 inhibitor, which has won an accelerated review in the U.S.

``It's not about Pharming's numbers at the moment,'' Bernd Hilhorst, an analyst at AEK in Amsterdam, said in a telephone interview. ``Everyone is waiting for the regulatory approvals,'' he said. Hilhorst has an ``outperform'' rating on the company.

Shares of Pharming fell 2 cents to 3.6 euros in Amsterdam. The stock has declined about 11 percent this year. Of the six analysts covering Pharming in the last 12 months, five rate the stock ``buy,'' and one advises holding it, based on data compiled by Bloomberg.

DNage Decision

Pharming said June 8 its works council appealed the company's decision to acquire DNage BV. Pharming is awaiting a decision from an Amsterdam court and will provide an update on the acquisition at that time, the company said.

Revenue at Pharming, which is also developing genetically engineered human proteins such as collagen, declined to 20,000 euros from 277,000 euros.

Pharming had been expected to report a loss of 4.9 million euros and sales of 60,000 euros, according to the median estimate of five analysts surveyed by Bloomberg.

The cost of operations fell by 1 million euros as one-time costs related the agreement with Arnhem-Netherlands-based Akzo Nobel weren't repeated. Pharming agreed in 2005 to allow Akzo unit Diosynth Biotechnology to produce rhC1INH.

Pharming, which created the first genetically modified bull, avoided bankruptcy in 2002 after selling assets to Cambridge, Massachusetts-based Genzyme Corp. and settling claims with the world's biggest maker of enzyme-replacement therapies related to patents and production of some drugs.

To contact the reporter on this story: Martijn van der Starre in Amsterdam vanderstarre@bloomberg.net

To contact the editor responsible for this story: Christopher Elser at celser@bloomberg.net.


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