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PharmAthene Reports Second Quarter 2008 Financial and Operational Results
Date:8/12/2008

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"Judging from prior contracts of this magnitude, we estimate the potential value of an rPA vaccine contract could range from between $350 - $600 million, and we believe that our product, SparVax(TM), is well positioned to capture a meaningful share of this contract. Phase II clinical trials have already been completed in over 700 healthy subjects and demonstrate that SparVax(TM) is well tolerated and induces an immune response in humans," continued Mr. Wright.

"In addition to our focus on SparVax(TM), we also anticipate a decision from the National Institutes of Health regarding development funding for a third generation rPA anthrax vaccine; and next month we expect to begin a Phase I trial of Protexia(R), our nerve agent countermeasure, which we believe will provide pre- and post-exposure prophylaxis against chemical nerve agents. With the addition of Avecia's vaccine business, we have created one of the industry's most robust biodefense portfolios, firmly establishing PharmAthene as a leading developer of urgently needed medical countermeasures to the United States government and foreign Allies," commented Mr. Wright. "We look forward to keeping the investment community apprised of our progress during this exciting time for our Company."

Pending 2008 Milestones

-- Decision anticipated from DHHS for procurement award for second generation rPA anthrax vaccine by year end

-- Decision anticipated from NIH for development contract award for third-generation rPA anthrax vaccine by year end

-- Company to file Investigational New Drug (IND) Application with the United States Food and Drug Administration (FDA) for Protexia(R) and plans to initiate Phase I clinical trial in September 2008

Financial Results

For the second quarter of 2008, PharmAthene recognized revenues of $10.9 million compared to $2.3 million in the same period of 2007. For the six months ended June 30, 2008 and 2007, the Company reported revenues of $1
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SOURCE PharmAthene, Inc.
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