Pharmathene Q3 2009 Earnings Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Elemer Piros - Rodman & Renshaw - Analyst : Good morning, gentlemen.

Question: Elemer Piros - Rodman & Renshaw - Analyst : David, I was wondering if you could give us maybe a little bit more detail on the partial clinical hold of the Valortim program. You mentioned -- first of all, what sort of funding is in place for the program and would the resolution of the partial clinical hold be funded by the government or would you have to do it on your own?

Question: Elemer Piros - Rodman & Renshaw - Analyst : And how will you -- what level of evidence will you have to provide? Was that indicated to you, that the issue could be alleviated by slower infusion or concomitant medications?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Would you be able to provide some tangible evidence or a theoretical discussion on how you might proceed?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Okay. Just to follow-up on that, David. Are you alone in this applying for this BAA to your knowledge or is there a competitor there?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Okay. And what did you learn from the FDA meeting on the Human Genome Sciences' antibody that you could use in your future developments? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Elemer Piros - Rodman & Renshaw - Analyst : And a question related to your negotiations with the SparVax. What was the last time then when you talked about it and do you think that from your end, at least at this juncture, have you answered all their questions?

Question: Elemer Piros - Rodman & Renshaw - Analyst : And just to describe the dynamic of these weekly technical conversations. Does it go like, we have three questions, you answer them and a week later they come up with two more questions, you answer them and a week later they only have four questions and you --? How does it go? If you could just provide some general insight to that.

Question: Elemer Piros - Rodman & Renshaw - Analyst : And you think you presented with them your business proposal to a sufficient detail for them to come back with counter-proposals, et cetera? So you provide them with everything that you think number-wise that they would need?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Good luck and let's hope for a nice holiday present, and thanks for taking my questions.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Thank you. First, I want to say I appreciate, David, that you're calling the contracting office at BARDA every day. If anything, they'll know that there's a lot of people out here wondering when they're going to make a decision. Just a couple of housekeeping questions. First off, Charlie, I wondered if you could tell us what the cash usage was in the quarter?

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay, very good. You plan to file that today?

Question: Debra Fiakas - Crystal Equity Research - Analyst : Excellent. And then the next question is also in regard to the balance sheet. I noted the other receivables and the unbilled receivables remains at a fairly high level. And I wondered if you could tell us, out of that total, I think it's $3.7 million, how much of that is unbilled or unrecognized revenue? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Yes.

Question: Debra Fiakas - Crystal Equity Research - Analyst : I wondered about the unbilled receivable portion. I wondered if any of that is unrecognized as revenue at this point or if it's all recognized as revenue and simply the bills have not been submitted?

Question: Debra Fiakas - Crystal Equity Research - Analyst : All right. Very good.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay. Very good. And then on the next question also a little bit of a housekeeping question. It's in regard to the payment on the credit line. I wondered if you could tell us how much was that you actually paid on the credit line.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay, thank you. David, during your opening remarks you mentioned that the current SparVax work is being supported by previously granted awards from BARDA and I wondered if you could just give us an idea of what you have remaining on those existing contracts? What dollar amount? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Oh, an NIH contract. I'm sorry.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay. And if there turns out to be some kind of an extended deliberation period on the part of BARDA that extends on into 2010, will this $17 million allow you -- will it support your current activities with regard to SparVax?

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay. And then I think the final question that I wanted to ask you about is in regard to your Protexia. I missed during your earlier comments, there is a pending decision and I wondered if you could give us some comment, if you didn't mention it, what kind of timing there might be with regard to your next phase of the Protexia funding and activity.

Question: Debra Fiakas - Crystal Equity Research - Analyst : All right. Thank you. I'll stop there and get back in the queue. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.