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PharmAthene Reports Year End 2008 Financial Results
Date:3/30/2009

ANNAPOLIS, Md., March 30, /PRNewswire-FirstCall/ -- PharmAthene, Inc. (NYSE Amex: PIP), a biodefense company developing medical countermeasures against biological and chemical threats, today reported operational and financial results for the year ended December 31, 2008.

For the years ended December 31, 2008 and 2007, the Company reported revenues of $32.9 million and $14.6 million, respectively. Revenues for the full year 2008 consisted primarily of contract funding from the U.S. government for the development of the Company's medical countermeasures, Protexia(R), SparVax(TM) and RypVax(TM). Revenues for the year ended December 31, 2008 increased by $11.9 million as a result of the Avecia vaccines acquisition in the second quarter of 2008, and particularly the acquired U.S. government contracts supporting the development of SparVax(TM), our third generation rPA anthrax vaccine candidate, and RypVax(TM).

Research and development expenses for the years ended December 31, 2008 and 2007 were $31.8 million and $16.6 million, respectively. Expenses in 2008 resulted from research and development activities related to programs for Valortim(R) and Protexia(R) as well as from activities related to the SparVax(TM) and RypVax(TM) programs, which were acquired in the second quarter of 2008. The increase in research and development expenses in 2008 is primarily due to programs acquired as a result of the Avecia acquisition, as well as process development, manufacturing and increased clinical activities during the year, partially offset by reduced internal resource costs.

General and administrative expenses for the years ended December 31, 2008 and 2007 were $19.4 million and $13.9 million, respectively. General and administrative expenses increased as a result of additional employee costs due to the increase in headcount
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