Pharming Group NV (PHARM), a biotechnology company that uses milk from genetically modified rabbits to make its most-advanced experimental drug, said its full-year loss widened on money put aside for future payments to a partner.
The net loss was 18.6 million euros ($24.4 million) compared with 17.9 million euros a year earlier, the Leiden, Netherlands- based company said in an e-mailed statement today. The company booked a 2.2 million-euro provision for future payments to Paul Royalty Fund II, LP. Analysts surveyed by Bloomberg expected a loss of 17.8 million euros, the median of five estimates.
Pharming last year signed a strategic partnering agreement with affiliates of Paul Royalty Fund valued at $30 million, for its most important drug. The fund will receive royalties of less than 10 percent on future sales of the drug, Pharming said.
Pharming has one product in late-stage development, a treatment for an abnormal swelling in the body known as hereditary angioedema. The treatment, known as recombinant human C1 inhibitor or Rhucin, received a fast-track designation in the U.S. and is under review by European regulators.
The company said today it anticipates the European regulators to decide on Rhucin's application in the second half. Pharming forecast operational costs this year to be in line with expenses in 2006. The company didn't give a forecast for 2007 earnings.
Shares of Pharming, which created the first genetically modified bull, fell 8.6 percent in the past 12 months, while the 25-member Amsterdam Midkap Index of medium-sized companies jumped 21 percent. Pharming has a market value of 330 million euros.
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